(Compound annuity​) You plan on buying some property in Florida 7 years from today. To do this you estimate that you will need ​$30,000 at that time for the purchase. You would like to accumulate these funds by making equal annual deposits in your savings​ account, which pays 6 percent annually. If you make your first deposit at the end of this​ year, and you would like your account to reach ​$30,000 when the final deposit is​made, what will be the amount of your​ deposits?

Q: To find the value of an annuity due, you will multiply the value of the ordinary annuity by…

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A: Present value of $16,000: Present value: $376,205.407024

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A: present value of annuity we need to calculate  pv = 15000[1/0.05 - 1/0.05(1+0.05)40]       =…

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A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…

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Q: You would like to have $7,000.00 in 14 years for a special vacation following graduation by making…

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A: Present value is the current value of a future amount that is to be received or paid out.     Future…

Q: You are saving for retirement. To live comfortably, you decide that you will need $2.5 million by…

A: Yearly deposit refers to an amount that is kept aside for the purpose of saving in any of the…

Q: Let’s say that you are saving up for retirement and decide to deposit $3,000 each year for the next…

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A: Payment = p = $6800Time = t = 14 yearsInterest rate = r = 5.25%

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Q: You would like to have $78,000 in 12 years. To accumulate this amount, you plan to deposit an equal…

A:

Q: You are investing in a retirement account and plan to deposit $5,000 per year into the account for…

A: Money has time value because money can be invested elsewhere and money can be earned so money today…

Q: You plan to start saving now for a downpayment for a house in your RRSP. You deposit $750 every…

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Q: You expect to receive a one-time payment of $1,000 in 10 years and a second payment of $1,500 in 15…

A: Here, One-time payment = $1,000 in 10 years Second payment = $1,500 in 15 years Annual interest rate…

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A: PV computes the existing value of future benefits by discounting future cash flows with a given…

Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…

A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%

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A: Loan amortization refers to the systematic repayment of a loan over a specific period of time. It…

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Q: You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement.…

A: Given, The cashflows is $90,000 The rate of interest is 8%

Q: You intend to buy a vacation home in seven years and plan to have saved $50,000 for a down payment.…

A: PRESENT VALUE   The current Value of Future Cash flow is called the Present Value Present Value is…

Q: deposits

A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…

Q: In 5 years, you will start receiving monthly payments of $1000 from a trust fund that one of your…

A: Data given:: Balance = $14000 Rate = 6.60% APR (quarterly compounding) Monthly payment = $1000…

Q: (Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated…

A: Future Value = fv = $19,000Time = t = 11 YearsInterest Rate = r = 15%