f my balance is $85,000 and I contribute $25,000 p.a for the next 35 years earning a rate of 5%, what will be my final balance

Q: I receive $10,000 a year in perpetuity. The original investment was $100,000. What is my rate of…

A: The perpetuity is reflection of stream of cash flows which will be continuing forever. The…

Q: How much money should I expect to receive in 10 years if I invest $585 every year for 10 years at…

A: Accumulated value of an annuity needs to be determined. This is time value of money (TVM) concept…

Q: Suppose you have $4,000,000 when you retire and want to withdraw an equal amount each year for the…

A: The regular fixed periodic deposits/withdrawals made at each interval are recognized as an annuity.…

Q: Suppose your mother has worked for 40 years and has accumulated  $1,000,000. She wishes to begin…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: If you want to retire with $2,000,000 in 45 years and can earn a rate of 10% with monthly…

A: The retirement amount to be required (FV) is $2,000,000. The maturity period is (NPER) 45 years. The…

Q: Suppose Annie’s current salary is $65,000 per year, and she is planning to retire 25 years from now.…

A: Retirement is the phase of life when an individual decides to stop working and transitions from…

Q: will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual…

A: Present value is the equivalent value of money today of the future money based on the time value of…

Q: how much will the three project payments be worth at the time of her retirement?

A: Introduction: The term future value of annuity can be defined as the value of payments at some…

Q: What are the differences in the function of the two units under the supervision of a chief finance…

A: A Chief Financial Officer (CFO) is the top financial executive in a company responsible for…

Q: receives his first $121,890.95 payment in 3 years and his last $121,890.95 payment in 7 years, then…

A: The rate of return is used to assess an investment's profitability. It determines the gain or loss…

Q: Mr. James would like an income of $300,000 per year in equal instalments for fifteen (15) years. How…

A: Solution: An equal amount received each period at end of period, it is known as ordinary annuity. We…

Q: You will receive a ​$80,000 inheritance in 5 years. You could invest that money today at 7​%…

A: Future value = Present value ( 1 + Rate of interest ) TIme

Q: Lee wants to receive $18,000 each year for the next 20 years. Assume a 4% rate compounded annually.…

A: Annual receipt (C) = $18,000 Interest rate (r) = 0.04 Period (n) = 20 Years Amount need to invest…

Q: John Atomic is retiring at the end of next year. He would like to ensure that his heirs receive…

A: Present value of perpetuity = Annual cash flow/Rate of return

Q: Puan Elly is planning to retire in 20 years and she plans begin withdrawing RM 50,000 anuallannually…

A: We need to use present value of ordinary annuity formula to calculate value of your retirement…

Q: What will the total amount of an account be where I deposited $1000 per year earning 4 % annually…

A: The accumulated value of a series of payment can defined as the sum of future value of all cash…

Q: I invest 33,996 today and expect a reimbursement every 6 months with a ROR of 0.1 compounded…

A: solution given Present value of investment 33996 Rate of interest 10% Semiannual…

Q: Your grandfather is retiring at the end of next year. He would like to ensure that his heirs receive…

A: Present value= Annual cash flows / Discounting rate= 96666.666666666666667= 96666.67 Approx

Q: How much should her contributions be?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: I would like to have $50,000 after retirement in 20 years 8 months from now. How much should I…

A: Present Value(PV) is value of a future amount at current point of time. It is done by discounting…

Q: I want to have 6000000 when I retire on April 18, 2055. I plan on making annual equal payments…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: Fifteen years from now, you will be inheriting $45,000. What is this inheritance worth to you today…

A: Future value = $45,000Rate = 8.0%Number of years = 15

Q: An individual has $1,000 to invest. He wants to accumulate $3,670 and can earn 8% annual interest on…

A: In this question we need to compute the number of years required to accumulate $3670. Other details…

Q: if i invest $8000 in a retirement account with 6% interest, and its compounded quarterly, how long…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: How much does your client need to contribute to a fund each month for the next 25 years (first…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: A person is offered a gift of $5,000 now or $8,000 five years from now. If such funds could be…

A: Present value is an estimate of the present value of future cash flows received, discounted at an…

Q: Jenny Abel is investing $2,500 today and will do so at the beginning of each of the next four years…

A: The FV of the investment refers to the combined value of its cash flows at a particular future date…

Q: Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it…

A: Given data; Present value = $50,000 interest rate =9% future value = $ 125,000

Q: What should be the balance in a Registered Retirement Income Fund (RRIF) that will provide $3,000 at…

A: PV is the present value of the annuity,PMT is the payment made at each period (in this case,…

Q: Please help me answer the following time value of money question. Chuck deposited $25 in an account…

A: The value of an amount deposited today after a specific number of years is called its future value.

Q: An inheritance of $400,000 will provide HOW MUCH at the end of each year for the next 20 years, at…

A: Data given:: PV= $400,000 n=20 years i= 7% (compounded annually)     Formula to be used: PV=…

Q: If you deposit $7889 per year for 5-years where i= 10% per year, find F:

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: l invest $500 per month at the end of each month for my retirement at 7.3% compounding monthly for…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Q: Starting next month, I plan to invest $500 per month for 10 years to reach my goal of $100,000.…

A: The rate of interest is used in the calculation of the interest amount on the principal value. The…

Q: Natalie’s RRSP is currently worth $250,000. She plans to contribute for another five years, and then…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Your grandmother invested $1,000 for you the day you were born. How much will this investment be…

A: Data given: Principal (PV)=$1000 n=30 years Rate= 6% (compounded quarterly)   Required: FV of this…

Q: Tran Lee plans to set aside $1, 800 a year for the next six years, earning 4 percent. What would be…

A: An annuity refers to a series of cash flow that are usually fixed in nature and that occurs…

Q: Tom Thompson expects to invest $10,000 at 12% and, at the end of a certain period, receive $96,463.…

A: Future value of an annuity: It refers to an amount received or paid equally for a specified number…

Q: Joshua plans to retire in 25 years. He will make 15 years of equal monthly payments into his…

A: The term "annuity" refers to a contract created and offered by financial institutions with the goal…

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 years. However, he may…

A: Quarterly amount (P) = P100,000 Period = 10 Years Number of quarterly payments (n) = 10*4 = 40…

Q: Jenny Lopez estimates that as a result of completing her master’s degree, she will earn an…

A: Future Value (FV) is a financial concept that represents the projected worth of an investment,…