Bianca decides to stop going to the coffee shops in the morning and figures she saves about $30 per week by doing so. Instead, she deposits $30 at the end of each week into an account that earns 3.8% interest. How much money will she have saved in this coffee account after 5 years?

Q: Dina Naples is saving money at the IBM Credit Union for a down payment on a house. How much does she…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: amy just retired with savings of $8 million. If she expects to live for 43 years and to earn 9% a…

A: Present Value of Annuity Due refers to a concept which determines the value of cash flows at present…

Q: Honey wants to go to Siargao, for four days at the age of 25. She hopes to save $10,000 by the time…

A: The present value method refers to the determination of the present worth of an amount with a…

Q: Your sister just deposited $6,500 into an investment account. She believes that she will earn an…

A: Present Value (PV) calculates the current worth of a future sum of money or a series of future cash…

Q: Abena currently has $3,450 in their savings account.  If they started depositing $50 a week into…

A: The savings account is a type of account that the banks provide to provide security for the funds of…

Q: You were drinking a cup of coffee from a coffee shop which cost you 5 dollars a day and you did this…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: A middle-aged school teacher is dreaming about retirement. She believes she can comfortably leave…

A:

Q: Katya wants to make 100 deposits to a bank account. She wants the total present value of the…

A: In this we need to find monthly rate of interest rate and than find out present value factor and…

Q: APR

A: Formula to calculate the future value is: FV = p*[(1+r)^n-1]/r

Q: Karren has just retired and plans to consume $9,460 from the retirement account every year for the…

A: The retirement account value is calculated as the present value of withdrawals.

Q: Kourtney currently works at Bruin Productions and decided to finally plan for the future, she wants…

A: The future value concept can be used to determine the future value of a present sum or the future…

Q: Jessica is turning 30 exactly 6 years from today.  She wants to make a downpayment on a house on…

A: Annuity refers to a series of payments made at a regular interval for a defined set of time. It…

Q: Sam Trunk just turned 35. Till now he has no savings and wants to retire at age 65. Sam and his wife…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: 10. At age 24, Brandie decides to put $150 a month into an account that has a 6% APR until she…

A: Future value refers to the value of the current asset at some future date affected by the rate of…

Q: Mike Smith just turned 16 years old. He wishes to buy a used car in one year, and he is willing to…

A: The value of money changes with time. Therefore, the time value of money considers the money…

Q: Jane is planning on saving for a car purchase in 8 years, however, she can only contribute to the…

A: Here we will use the concept of annuities and time value of money. The amount invested by Jane at…

Q: Claudia intends to accumulate $35,000, so 6 months earlier she opens an account with $7,500, earning…

A: Simple interest = Principal * interest * time Amount = Principal + simple interest Amount =…

Q: Jace wants to save to buy a car. Jace plans to invest some of their pay every month into an account…

A: Monthly payments refers to the periodic payment. Periodic payment can be made monthly, quarterly,…

Q: Benji wants to purchase a new car in 4 years. He plans on putting $8,000 down. He will be putting a…

A: let payment be = A r=9% m=12 (monthly compounding) n =4 FVA = $8000

Q: Jayden is currently working but plans to start college in a few years For this purpose, she would…

A: Step 1 A fundamental principle of finance argues that money received now is worth more than the same…

Q: To be able to buy a new computer, Donna decides to save for 5 years. She opens a savings account…

A: Simple Interest = P * R * TWhere P = Principal = $400R = Rate of Interest = 3%T = Time = 5 years

Q: Samantha spends $120 per month on lottery scratchers. She decides to invest that amount each month…

A: Information Provided: Payment = $120 Annual Interest rate = 6.7$ Total principal value = (120*12) =…

Q: Your sister just deposited $9,000 into an investment account. She believes that she will earn an…

A: The concept of time value of money will be used here. Since future value has to be computed we will…

Q: Eleanor is switching jobs. She wants to roll over her previous jobs retirement fund of $72,000, Her…

A: The concept of the time value of money states that the same amount of money has more value today…

Q: Ali has decided to take a trip back home to California in 1 ½ years, but she needs to save up some…

A: Using excel FV function

Q: You have a habit of drinking a cup of Starbuckscoffee ($3.75 a cup) on the way to work every…

A: A concept that helps to measure the present or future value of the cash inflow and outflow is term…

Q: As soon as Erika graduated from college and got her first fulltime job, she decided she would start…

A: Monthly deposit (m) = $400 Monthly deposit period (p) = 120 (i.e. 10 years * 12) Monthly interest…

Q: for just one year of spending $100 on dinner every other saturday how much would debbie pay in…

A: For one year of spending $100 every other Saturday, the total number of charges would be:Number of…

Q: Hannah wants to have $ 7500 to help pay for a new deck in 16 years. If she wants to put her money…

A: GIVEN, Future Value  = $7500 Interest rate(r)  = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

Q: Laura opens a money market account that earns 3.0% per year by depositing $15,000. She then deposits…

A: Compounding is a technique through which future value (FV) of present amount is computed by using an…

Q: Alev has a $300 balance on her credit card that she forgot about. Each month, the balance increases…

A: 1. Meaning of Compound interest: Compound interest is the interest on a deposit/ borrowing / loan…

Q: Sarah N. Dippity believes the world will end in exactly five years. She has $400,000 in a bank…

A: Value in the account today $400,000. Withdrawals of “P” for 5 years and $50,000 at the end of 5…

Q: Julie deposited some money in a savings account this morning. Her money will earn 5 percent…

A: Computation:

Q: In 20 years, Hannah would like to have $30,000 in an account that earns 4.2% compounded monthly. How…

A: In the given question we need to compute the Deposit today so that Hannah will have $30000 at the…

Q: Rhonda has saved $1,200,000 in an account. Her goal is to have 1,500,000 saved up to use as down…

A: given, pv = $1200,000 n=5 r=2.5%

Q: Taurus needs P 4,000 per year for four years to go to college. His sugar mama invested P 5,000 in 7…

A: The worth of money changes with time, therefore the TVM considers the value of money according to…

Q: Lena is regularly saving money in order to buy a new car at the end of 7 years. If the car is 30,000…

A: Cost of Car is 30,000EUR Interest rate is 2% Time period is 7 years or 7×12 = 84 months To Find:…

Q: Money in my savings account earns interest at 10%annual rate. Each time I go to the bank, I waste 15…

A: To answer your questions, let's analyze each scenario:a) How often should I go to the bank?To…

Q: What semi-annual deposits does Adrian have to make?

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: what will be the balance of her account after 30 more years assuming the same 8% interest

A: PRESENT VALUE:The concept of present value (PV) is a fundamental principle in finance, used to…

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.