ANNUITY. If P10,000 is deposited each year for 9 years, how much annuity can a person get SEMI-ANNUALLY from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly.

Q: Determine the value of Won the right-hand side of the accompanying diagram that makes the two…

A: Present value is today's value of future cash flows. It is computed by discounting the cash flows by…

Q: If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a…

A: Ordinary Annuity means a series of equal payments that are made over a fixed length of time at the…

Q: The cash now day Click the icon to view the diagram for cash flows Click the icon to view the…

A: Perpetual are the annuities that pay the payment forever and there is payment for always and that…

Q: How long will have P250,000 for a down payment on a car if deposit of P12,500 at the beginning of…

A: The deposits are being made at the start or beginning of each month. Hence this is a case of annuity…

Q: Computing Future Value of Annual Deposits. What amount would you have if you deposited $2,500 a year…

A: Annual Deposits = $2,500 Time duration = 30 years  Rate = 8%

Q: You Save Bank has a unique account. If you deposit $7,250 today, the bank will pay you an annual…

A: In this case, the bank uses different interest rates for different periods, so we'll need to apply…

Q: A company would like to have $400,000 in 6 years. How much should be invested semiannually into an…

A: Information Provided: Future value = $400,000 Period = 6 years Interest rate = 3.6% compounded…

Q: Year 0-4: $2000 at EOY 0 and decreases $200 each year (cash outflow) Year 6-10: $C at EOY 6 and…

A: Cash flows refer to the net amount of funds that are being transferred in and out of the business…

Q: What is the present value of a stream of 5 end-of-year annual cash receipts of $3,200 given a…

A: The present value of an annuity or PV of an annuity is the value of the payments or receipts to be…

Q: How much money should be deposited today in an account that earns 8.5% compounded monthly so that it…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: An investment account returns 2.81% annually. You want to withdraw $ 9,000 each year for the next 9…

A: The present value of an annuity is the value today of a series of equal payments made at fixed…

Q: What single payment at the beginning of year 2 is equivalent to an equal annual series of payments…

A: First payment is made at the end of Year 3 and will be made till Year 8. Hence, a total of 6 payment…

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: Compound = monthly = 12Interest rate = r = 5.5 / 12 %Time = t = 11 * 12 = 132Future Value = fv =…

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: 1) Future Value of anuity = P * [ { (1 + r )n -1 } /r ] where, P =  periodic payment r = interest…

Q: How much money should be deposited each year for 6 years starting 1 year from today, if you wish to…

A: Here, Withdrawal Amount is $5132 Time Period for Withdrawal (n) is 13 years Time Period to start the…

Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…

A: We know that the formula to calculate the present value is I/(1+i)n, where I is the cash flow that…

Q: You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly.…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: What will a deposit of $2500 at 7.8% compounded semiannually be worth if left in the bank for six…

A: Formula for Future Value FV=PVx(1+r/2)nxt Where, FV = Future Value PV = Present Value r = rate of…

Q: Your mother deposit P1,000 in an account that pays 12% interest, compounded quarterly. How much will…

A: Investments are the deposits made in some accounts and financial instruments that pay returns and…

Q: Please break down step by step how the circled figure was calculated. How did they get 6.41766?…

A: It refers to the current worth or value of a sum of money to be received or paid in the future,…

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: Future value is the value that an investment will have in the future after earning a certain rate of…

Q: What will a deposit of $5500 at 7.8% compounded monthly be worth if left in the bank for 5 years?…

A: In the TVM calculator the input parameters will be: N  = 60 (5 years * 12 months in a year = 60) I%…

Q: You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The…

A: present value in savings account = $100 interest rate annually = 2% future value = $120 time period…

Q: If you make yearly deposits of $1200 in a bank account, how much money will you have in your account…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where r = rate of interest i.e. 6% n = no. of…

Q: Determine the present equivalent value of the cash-fow diagram shown below when the annual interest…

A: Present worth is related to the time value of the money. It shows that the worth of the money in…

Q: How much money should be deposited today in an account that earns 7% compounded semiannually so that…

A: The amount of deposit required today is calculated as the present value.

Q: Gary King will deposit $27500 into an account today that earns 13% per year compounded annually.…

A: Given information: Principle amount = $27,500 Rate of interest = 13% Period = 5 years

Q: What will a deposit of $4500 at 7.8% compounded semiannually be worth if left in the bank for six…

A: N  = 6 years * 2 semi-annual period in a year = 12 I% = 7.8 PV = - 4500 Pmt = 0 P/Y = 2 (as…

Q: (Comprehensive problem) You would like to have $54,000 in 16 years. To accumulate this amount, you…

A: Future value = $54,000Period = 16 yearsInterest rate = 6% per annum

Q: a. How much money will be saved? b. How much will be owed after 2 years?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Solve the following question with complete solution and include cash flow diagram: (DO NOT USE…

A: The future value of an annuity refers to the total value of a series of equal payments or cash flows…

Q: How much do you need to deposit into a bank in order to receive proceeds of $200,000 in 5 years if…

A: The equation is, PV=FV÷1+in Where, Present value is represented by PV Future value is represented by…

Q: Recently, More Money 4U offered an annuity that pays 5.7% compounded monthly. If $2,072 is deposited…

A: Variables in the question:Monthly deposit (PMT)=$2072Rate=5.7% (compounded monthly)N=8 years

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: Periodic deposits in the given case can be the annual payments or annual deposits that can be made…

Q: How much money should be deposited today in an account that earns 4​% compounded semiannually so…

A: Money that  should be deposited today in an account that earns4​% compounded semiannually so that it…