How much do I need to save each year from now with a interest rate of 12%?

Q: If you pay $500 each year into an account that grows at 14% per year, how much will you have in the…

A: An annuity is end of year deposits made over a period of time at a specified rate of interest.The…

Q: How much should be invested each year for 10 years to provide you with $7000 per year for the next…

A: Annuity means no. of payments which are equal in size and made at equal length of intervals. Person…

Q: Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the…

A: Terminal value at end of year 3 = Cash flow in year 4  / (Interest rate - growth rate) = $5000 / (7%…

Q: a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much…

A: Loan payments can be paid off in periodic payments. To understand the periodic payments the loan…

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: I want to buy a $195,000 house and plan to pay 20% as a down payment t and take a 3.8% APR loan for…

A: To find the monthly payment, we will use 'PMT' function in excel. As down payment is 20% ($39,000),…

Q: How much money should you invest now to ensure $600 per year for 9 years starting next year. The…

A: Given Information: Rate of interest - 16% Annual amount - $600 per year No. of years = 9 To compute:…

Q: How much will you have in 40 years if you save $3,000 each year and your account earns 8% interest…

A: In the given question we require to calculate the future value of payment made every year of $3000…

Q: How much will I have 8 years from now, if I will invest P10,300 at the end of each three months for…

A: Future value is the worth of any asset or any sum of money at a future date when such asset or money…

Q: annually

A: Formula to calculate r: r = (FV/PV)^1/n - 1

Q: You need $24787 in 5 years.  If you think you could earn an annual rate of 12.35%, what would be…

A: The concept of time value of money states that the money received today is worth more than that the…

Q: You would like to have $100,000 in 10 years’ time. How much should you save each year if the…

A: The future value = $100,000 Time period = 10 years  Interest rate = 5%

Q: You took out a student loan in college and now have to pay $1,900 every year for 20 years, starting…

A: Present Value is the value of all future cash flows discounted at a given rate of interest for the…

Q: compounded

A: Formula to calculate the present value or amount to be deposited today is: PV = FV/(1+r)^n Where PV…

Q: Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have…

A: Present value is the current worth of the amount that is expected to be received in future date.

Q: You deposit $1000 into an account that pays 10% per year, compounded monthly. How much money will…

A: STEP 1 Compound interest simply indicates that the interest paid on a savings account, loan, or…

Q: How much do I need to save each year to have $50,000 in 15 years at an interest rate of 12%?

A: Future value of annuity is the future value of the series of periodic cash flows.   Future value of…

Q: If you invest $300 per month at an annual interest rate of 10%, how much will you have after 30…

A: Value of monthly payment after 30 years is calculated as the future value of monthly investment…

Q: How much money do I need now if I am going to recieve $5000 every 6 months (starting in 6 months)…

A: Compound = semiannually = 2Payment = p = $5000Time = t = 10 * 2 = 20Interest rate = r = 4 / 2 = 2%

Q: How much would you have to deposit today if you wanted to have $60,000 in four years? Annual…

A: Present value: It can be defined as today’s value of the sum of money that will be received by the…

Q: ou want to have $1,970,000 at the end of 22 years. You have $6,000 to invest now, and you will…

A: Future value includes the amount of deposits made and the amount of compounding interest accumulated…

Q: You will receive $5,000 in six years.  When you receive it, you will invest it for 7 more years at…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: You wish to have $40,000 dollars in 6 years. How much do you need to deposit today if the rate is…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…

A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…

Q: If i put in $500 a month which pays daily interest rate of 1% p.a., how much will I have at the end…

A: Interest is the amount of fee paid to an investor or depositor for providing funds. It is the…

Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…

A: The question is based on the concept of time value.

Q: An investment opportunity requires that you deposit $1000 a year for 5 years. At the end of this…

A: Using excel PV and FV function

Q: If you would like to have $20,000 in 5 years, how much should you invest today if your investment…

A: Present value is the value today of future cash flows discounted at the required rate of return for…

Q: If you borrow $3000 at 14% simple interest for 10 months, how much will you owe in 10 months? How…

A: Simple interest = A × R × T  Here A = Amount borrowed '         R = Rate of interest          T =…

Q: What will your monthly payment be if you have a 5% interest rate and a term of 20 years? How much…

A: Given:Annual interest rate = 5%Loan term = 20 yearsYearly payment (PV) = $17,000

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: You want to buy a house in 7 years and you will need 10,000 for a down payment and interest rates…

A: The question is based on the concept of time value of money with concept of annuity. Here , we have…

Q: if you invest $20,000 in a security today, how much will it be worth in six years? The security pays…

A: We need to use compound interest rate formula for calculation amount after 6 years. A=P(1+i)n Where…

Q: You’re buying your first house for $180,000, giving $35,000 as down payment. The amount you will…

A: The amount of interest payable over the term of the loan and the loan amount due is equal to the…

Q: An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each of…

A: The amount to be paid for the investment is calculated as the present value of annuity plus the…

Q: Suppose you save $100 per month. How long will it take you to accumulate $10,000 if the annual…

A: Following details are given to us in the question : Monthly saving = $100 Future value = $10000…

Q: how much money would you need to have in annuity paying 6% interest if you want to be able to…

A: Approach to solving the question:Please see attached photo for detailed solution. Thank you.Detailed…

Q: You invest in a project that is expected to pay you $960 every year forever. If the first payment to…

A: We can determine the PV of the cash flow using the formula below:r = discount rate = 3.80% = 0.038