How much must you deposit each year into your retirement account starting now and continuing through year 10 if you want to be able to withdraw $90,000 per year forever, beginning 29 years from now? Assume the account earns interest at 14% per year. The amount to be deposited is determined to be $_________

Q: Henry would like to have a retirement income of $3,000 per month (month-end payments). How much must…

A: The present value of annuity refers to the current value of a series of future cash flows or…

Q: Derek will deposit $255.00 per year into an account starting today and ending in year 21.00. The…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You have just made your first $5461 contribution to your retirement account. Assume you earn a…

A: Simple interest is the amount of interest earned on saving or investing some particular amount. This…

Q: Describe term net asset value (NAV)?

A: Net asset value (NAV): It describes an entity's net worth, which is measured as the complete value…

Q: If she starts making deposit amounts in one year and her deposits increase at the inflation rate of…

A: Inflation:  The Wholesale Price Index's (WPI) annual percentage change in value is known as…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $55,928 of…

A: Annuity = a = $55,928Time = t = 10 YearsRate of Return = r = 8%

Q: A worker saves for retirement from year 2035 to year 2056, starting with $10,000 in 2035 and…

A: Annuity is the amount that can be withdrawn from amount saved over period of time for retirement.

Q: Assume that today is January 1, 2022, and that you just turned 25 years old. You plan to retire when…

A: Amount of required in the retirement account as on the date of retirement is the present value of…

Q: I want 800000 for retirement in 25 years. How much would she need to deposit into the account each…

A: Future value (FV) = 800,000 Period = 25 Years Number of monthly deposits (n) = 25*12 = 300 Interest…

Q: You are 65 years old and about to retire. You have $100,000 saved in a retirement account and would…

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

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

Q: andré is looking ahead to his retirement. He wants to have $580,000 in his savings account when he…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Say that you plan to retire in 9 years. Starting today, you plan to make 9 annual contributions of…

A: Number of Payment = n = 9Payment = p = $6600Interest Rate = r = 6.7%special contribution = c =…

Q: An engineer plans to deposit $3000 at the end of each year into a retirement account that pays 4%…

A: FV =P x [(1+r)n - 1] / rWhere: FV = Future value P = Amount deposited each year r = Interest rate…

Q: A person has an individual retirement account that they contribute | . $2,150 to annually at the end…

A: Payment = p = $2150Time = t = 35Interest Rate = r = 12%

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: Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average…

A: Annual deposit=$5200Period=n=40 yearsInterest rate=r=6%Calculate future value.

Q: eposit $220 at the beginning of each of the 15 years, using interest at 7% per year, how much he…

A: Given information :

Q: You deposit $58000 into an account which pays 6% compounded annually. How much can you withdraw at…

A: Perpetual annual withdrawal refers to the amount of repayment for n number of years forever. This…

Q: You will make equal deposits into your retirement account each year for 10 years starting now (i.e.,…

A: Present value at 30 is:

Q: On your 35th birthday, you open a retirement account that pays 6% interest each year. You want to…

A: Annuity refers to a series of cash flow that occurs periodically and at constant intervals. Here the…

Q: How much will a registered retirement savings deposit of $23 700.00 be worth in 8 years at 6.54%…

A: Given, Principal amount = $23,700 Time (t) = 8 years Rate of interest (r) = 6.54%

Q: You begin making contributions to a new retirement account on your thirtieth birthday. You make a…

A: Calculate the future value at the end 64 years as follows:

Q: A person deposits $2000 every year into an account which has an interest rate of 2.5% annually. If…

A: This problem is based on the concept of the time value of money, which states that a sum of money…

Q: how much interest will i earn on $200 deposited in an account that pays 5.75% interest annually if i…

A: Given that: Initial deposit amount = $200 Interest rate = 5.75% Period = 1 year

Q: ou deposit your inheritance of $500,000 into an account earning 5.3% interest per year compounded…

A: Given information: Present value of deposit is $500,000 Interest rate is 5.3% compounded monthly…

Q: A person deposits an amount of 500 dinars on the tenth day of each month of the year 2020, and if…

A: Annuity means finite no. of payments which are same in size and made in equal time intervals. Person…

Q: You have just made your first $4,500 contribution to your individual retirement account. Assume you…

A: Given the following:  First contribution, PV = $4,500  Interest rate, r = 11.3%  Period, n = 39…

Q: Fred is planning on retiring this year. How much must his retirement account have in it this year in…

A:

Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…

A: Deposits= $100 Interest= 3.25% per year Period= 7 years

Q: how much money will your retirement account have at the end of 35 years if the interest in…

A: We can determine the amount using the FV of ordinary annuity formula given below:In the formula…

Q: A young professional wishes to have $820000 in her retirement account. Its current value is $36000.…

A: This question can be solved using the Goal seek function of What if Analysis.  Let the number of…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.