David wants to accumulate at least $40,000 by depositing $1,000 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does he need to make in order to reach his goal? Round to the next payment b. How long will it take David to reach his goal?
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- Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.Cynthia wants to accumulate at least $40,000 by depositing $1,200 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does she need to make in order to reach her goal? Round to the next payment b. How long will it take Cynthia to reach her goal? year(s) month(s) Express the answer in years and months, rounded to the next payment periodJohn already has $19,598 in his savings account. He plans to make contributions of $753.35 at the end of every three months, until he reaches $47,100. The interest rate is 9.12% compounded annually. a) In how many years and months will he reach his goal? Round up to the next month. P/Y = N = He will reach his goal in A year(s) and A month(s). b) After John reaches $47,100, he wants to withdraw $3,700 at the start of each half year. For how many years and months can he make the withdrawals? Round up to the next month. P/Y= A/ N = A He will withdraw for A A/ year(s) and A month(s).
- John already has $50,429 in his savings account. He plans to make contributions of $1,658.65 at the end of every six months, until he reaches $73,400. The interest rate is 2.13% compounded quarterly. a) In how many years and months will he reach his goal? Round up to the next month. P/Y = N = He will reach his goal in A year(s) and A month(s). b) After John reaches $73,400, he wants to withdraw $600 at the start of each month. For how many years and months can he make the withdrawals? Round up to the next month. P/Y = A N = A He will withdraw for A A/ year(s) and A/ month(s).Henry would like to have a retirement income of $3,000O per month (month-end payments). How much must he have in his retirement fund on the day that he retires if he plans to live for 30 years? Assume that the account will earn j12=3.6%. Your Answer: AnswerSuppose that Jacob would like to invest at the end of each month for the next 15 years into an account paying 6.72% compounded monthly in order to accumulate $10,000 at the end of that time? How much money must Jacob deposit into the account each month? How much interest will he have earned?
- Please help me answer the following time value of money question. Michael makes a $500 investment. At the end of 5 years, he has 700. Assuming that the interest is compounded monthly, what is the interest rate earned on his investment?Aaron wants to accumulate at least $60,000 by depositing $2,000 at the end of every month into a fund that earns interest at 4.50% compounded monthly. a. How many deposits does she need to make to reach her goal? 0 Round to the next payment b. How long will it take Aaron to reach her goal? 0 years 0 months SUBMIT QUESTION SAVE PROGRESS 00 700 30 SUB USPatricia set up a savings account for a trip that will cost $7,200 some time in the future. He will deposit $550 at the end of every six months into the account earning 5.441% compounded semi-annually. How long, in years and months, will it take for Patricia to reach his goal? Provide an explanation for your result. Full solutions should be shown on separate sheets of paper. Submit your solutions. year(s) and month(s)
- Tom plans to save $92 a month, starting today, for 18 years. Dick plans to save $92 a month for 18 years, starting one month from today. Both Tom and Dick expect to earn an average return of 5.4 percent APR on their savings and both will make the same number of deposits. At the end of the 18 years, how much more (in $) will Tom have than Dick? Answer to two decimals.Suppose you have estimated that you will need $2,500 per month in your retirement to meet your expenses and live comfortably, and that you have found or chosen a fund (account) which pays monthly interest 4% APR . What principal, or balance, will your account need to maintain in order to be able to pay you this amount each month? Round/take your answer to the nearest cent.On January 1, Alan King decided to transfer an amount from his checking account into aninvestment account that later will provide $80,000 to send his son to college (four yearsfrom now). The investment account will earn 8 percent, which will be added to the fund eachyear-end.Required (show computations and round to the nearest dollar):1. How much must Alan deposit on January 1?2. What is the interest for the four years?