After graduation, you plan to work for Mega Corporation for 10 years and then start your own business. You expect to save $5,000 a year for the first 5years and $10,000 annually for the following 5 years, with the first deposit being made a year from today. In addition, your grandfather just gave you a$20,000 graduation gift which you will deposit immediately. If the account earns 8% compounded annually, what how much will you have when youstart your business 10 years from now? (WITH CALCULATION)a $185.976b. $116,110c. $217,513d. $144,944e. $128,349

Future value refers to the estimated value of an asset or investment at a specific point in the…

Answered: After graduation, you plan to work for…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

You plan on making deposits of $1,000 into a savings account at the end of every year in college. If you graduate in 5 years and the account earns an annual rate of 8%, how much will you have at graduation? PLEASE BREAK IT DOWN
You have just deposited $12,000 into an account that promises to pay you an annual interest rate of 6.7 percent each year for the next 8 years. You will leave the money invested in the account and 20 years from today, you need to have $44,950 in the account. What annual interest rate must you earn over the last 12 years to accomplish this goal?
Your uncle has agreed to deposit $3000 in your brokerage account at the beginning today for five years. You estimate that you can earn 9% per year on your investments. How much will you have in your account at the beginning of year 4?
You opened a savings yesterday by depositing $10,000. You would like to be able to withdraw $2,000 per year for each of the next 4 years of college and still have $3,000 left in the account when you graduate. What interest rate does this account need to earn?
After you graduate, you want to start saving for a down payment on a house which you plan to buy 5 years from now. The company that hired you gave you a $1,703 sign on bonus now that you will put towards the house. You plan to save $222 per paycheck also to put towards the house in years 1-5. You get paid biweekly which means there are 26 paychecks per year. If the account where the money will be deposited achieves 9%, how much will you have as a down payment in year 5? Enter your answer to the nearest dollar.
You plan to buy property in Florida 8 years from today. To do this, you estimate that you will need $ 45000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits into your savings account, which pays 9% annually. If you make your first deposit at the end ofthis year, and you would like your accountto reach$ 45000 when the final deposit is made, what amount do you need to deposit annually?
Use the following to answer the next two questions: You decide to be in saving for your retirement days. You begin with depositing $300 per month into a savings account that is earning 12% per year compounded monthly. You may deposit faithfully for 25 years at which time you'll retire. Your institution wants to keep your money and as an incentive begins paying 15% per year compounded monthly provided your delay, taking out any money for four years. After four years, you decide to begin withdrawing equal payments for the next 20 years. What are the equal monthly payments that you can withdraw if you want the account to last for 20 years?
One year from today you will make the first of 20 equal annual deposits in a bank account. One year after the last deposit you will retire and make the first of 15 annual withdrawals of $10,000. If you can earn 12% annually, what should be the amount of your deposits? the answer is 945.27 please show how to get it
You currently have $12,000 saved up in your bank account. You believe that 2 years from now, some of your generous relatives will give you a combined gift of $5,000 as a college graduation present. If you can earn 4.5% annual compound interest on your savings, how many years will it take you, from today, to be able to afford the car you'd like to purchase, which costs $25,000?
After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and deposit $8,000 a year for the first 6 years (t = 1 through t = 6) and $16,000 annually for the following 6 years (t = 7 through t = 12). The first deposit will be made a year from today. In addition, your grandfather just gave you a $40,000 graduation gift which you will deposit immediately (t = o). If the account earns 9% compounded annually, how much will you have when you start your business 12 years from now? a. $324,529 b. $344,653 c. $333,819 d. $293,067 e. $342,904
You recently graduated and received a S5, 000 gift from your parents. Additionally, you secured a job with a monthly paycheck of S4, 000 after deductions. You decide to invest the gift and 10% of your monthly paycheck into an ETF that you expect to grow at a rate of 0.7% per month. What will be the balance of your investment account after 10 years assuming that your paycheck amount remains the same over these 10 years? Group of answer choicesS76, 392S86, 382S92, 133S87, 314
To complete your last year in business school and then go through law school, you will need $5,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $5,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 8.5% interest a sum of money that is sufficient to provide the four payments of $5,000 each. His deposit will be made today. Do not round intermediate calculations. Round your answers to the nearest cent. If your answer is zero, enter "0". How large must the deposit be? $ How much will be in the account immediately after you make the first withdrawal? After the last withdrawal? After the first withdrawal: $ After the last withdrawal: $

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