Cash Flow Diagram1. You are 40 years old and have accumulated $50,000 in your savings account. You can add $100 at the end of each month to your account which pays an annual interest rate of 6% compounded monthly. Will you be able to retire in 20 years?2. How much should be invested now (at present time) at 8% compound interest per year, in order to receive US$ 1360.5 within 4 years; or what is the present equivalent worth of US$ 1 360.5 to be received four years in the future? Cash Flow Diagram1. You are 40 years old and have accumulated $50,000 in yoursavings account. You can add $100 at the end of each month toyour account which pays an annual interest rate of 6%compounded monthly. Will you be able to retire in 20 years?2. How much should be invested now (at present time) at 8%compound interest per year, in order to receive US$ 1360.5within 4 years; or what is the present equivalent worth of US$1 360.5 to be received four years in the future?

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Answered: Cash Flow Diagram 1. You are 40 years…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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Cash Flow Diagram 1. You are 40 years old and have accumulated $50,000 in your savings account. You can add $100 at the end of each month to your account which pays an annual interest rate of 6% compounded monthly. Will you be able to retire in 20 years? 2. How much should be invested now (at present time) at 8% compound interest per year, in order to receive US$ 1360.5 within 4 years; or what is the present equivalent worth of US$ 1 360.5 to be received four years in the future?

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