ichael wants to have $57,000 in 11 years on a savings plan that requires monthly contributions. If he can earn 8 percent APR with monthly compounding on the savings plan, what is the amount that he will have to invest every month for the next 11 years? Round it to two decimal

Q: hael wants to have $68,000 in 12 years on a savings plan that requires monthly contributions. If he…

A: Future value of investment includes the amount being deposited over the years and amount of interest…

Q: How much does Tim need to save each year for 9 years as a regular savings payment if he wants to…

A: Formulas to be used   In excel PMT(rate, nper, pv, [fv], [type]) Rate The interest rate for the…

Q: Roger decides to start an investment account by depositing $5,000 today. In one year he will invest…

A: Initial deposit (Year 0) = $5,000 Year 1 Deposit = $500 Year 2 Deposit = $600 Year 3 Deposit = $700…

Q: Chester hopes to earn $1200 in interest in 2.5years time from $60,000 that he has available to…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: Lester hopes to earn $1100 in interest in 2.2 years time from $22,000 that he has available to…

A: We need to use future value formula to calculate annual interest rateFV = PV(1+r)nwhereFV = Future…

Q: Suppose Chris starts saving in 3 years from today. He will save $20,000 each year for 6 years (until…

A: The present value uses the principle of the time value of money and states that a particular sum of…

Q: Gabriel is able to save 10,000 pesos every month from his salary. If he decides to invest in a…

A: >Future value of any amount invested is the sum total of amount invested and the interest earned…

Q: John already has $50,429 in his savings account. He plans to make contributions of $1,658 at the end…

A: The banks generally offer compounding interest, The interest is earned on interest and the interest…

Q: You are going to save money for your son’s education. You have decided to place $4,146 every half…

A: Variables in the question:Deposit (PMT)=$4146Rate=9.51% p.a.Semi-annual rate==4.755%N=3 yearsnper=3…

Q: John and Rosamond want to retire in 8 years and can save $230 every 3 months. They plan to deposit…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: James wants to buy a car in 5 years. The car is expected to cost $30,000 at that time. How much…

A: The amount required to invest today can be calculated as the present value of lump sum

Q: The Martinez family wants to save money to travel the world. They purchase an annuity with a monthly…

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

Q: Robert wants to deposit $300 into a fund at the beginning of each month. If he can earn 10%…

A: Given information : Monthly deposit = $300 Interest rate = 10% Tenure = 6 years

Q: Your grandparents have their life savings of $750,000 in a savings account that pays 6.7% interest…

A: Step 1 An inflow or outflow amount that happens at each period of a financial stream is known as a…

Q: James and Kate would like to have $30,000 in 6 years in order to purchase anew mini van. What amount…

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

Q: A 13-year-old has his dad save $100 of his birthday money for the next family vacation. How much…

A: Here, Amount of savings today (PV) = $100 Interest rate (RATE) = 2.68%  Time period (NPER) = 15…

Q: Jeremy is investing $5,000 today and will do so at the beginning of another nine years for a total…

A: The future value of the annuity due is the future worth of a cash flow series receivable/period at…

Q: Tom plans to save $2,000 for each of the next ten years, starting tonight when he will write his…

A: The account value at end of 10 years can be calculated with the help of future value of annuity due…

Q: Benji wants to purchase a new car in 4 years. He plans on putting $8,000 down. He will be putting a…

A: let payment be = A r=9% m=12 (monthly compounding) n =4 FVA = $8000

Q: Chris has saved $500,000 for retirement. If he set up a payout annuity for 30 years in an account…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Manuel is preparing for an income fund for his retirement. He wants to receive P 15 500 at the…

A: Let the amount to deposit now = X Monthly payout (M) = P 15500 n = 25 years = 300 months r = 10.5%…

Q: Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  FV = $80,000 n = no. of compounding period 10*12…

Q: Michael wants to have $63,000 in 9 years on a savings plan that requires monthly contributions.  If…

A: Future Value = fv = $63,000Compound = monthly = 12Time = t = 9 * 12 = 108Interest rate = r = 7 / 12…

Q: Steven plans to contribute $300 to his "super unrealistically high" savings account at the end of…

A: Here,

Q: James Smith plans to save $4,000 every year for the next eight years, starting today. At the end of…

A: A deposit of $4000 is made every year starting from today. Number of years of investment is 8 and…

Q: Frank plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

Q: What semi-annual deposits does Adrian have to make?

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per…

A: Using excel PV function

Q: In 3 years, Muhammad wants to have a balance of $10,000 in his savings to take a trip. What monthly…

A: Compound = monthly = 12 Time = 3 * 12 = 36 months Future value = fv = $10,000 Interest rate = r =…

Q: Your mother has an annuity that will give her monthly payments for 13 years. She tell you it is…

A: The present value of annuity due is calculated with the series of annuity payments which is…

Q: Nikolay wants to make annual contributions to his RRSP for the next 30 years. He will increase each…

A: The future value of a growing annuity is the accumulated value of a series of cash flows that…

Q: How much money should she save at the beginning of each 3 months

A: Value at a future point of time is equal to sum of savings made and interest on those savings.…

Q: The Ward family wants to save money to travel the world. They purchase an annuity with a quarterly…

A: The individual or company can invest any amount of money with the bank or other financial…

Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…

A: The annuity is a series of cash flow wherein an equal amount is paid every period.

Q: Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an…

A: Computation:

Q: How much does Herbert need to save each year for 10 years as a regular savings payment if he wants…

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

Q: Jose currently has $12,000.00 saved and plans to make quarterly savings contributions of $9,150.69.…

A: Compound = Quarterly = 4Present Value  = pv = $12,000Payment = p = $9150.69Interest rate = r = 18.04…

Q: Karen wants to have $22,559 in her investment account in 5 years. If her bank offers an annual…

A: Following details are given in the question : Future value = $22559 Time period = 5 years Interest…

Q: John already has $19,598 in his savings account. He plans to make contributions of $753.35 at the…

A: The banks generally offer compounding interest, The interest is earned on interest and the interest…

Q: John and Rosamond want to retire in 5 years and can save $140 every three months. They plan to…

A: Future value is a financial concept that is crucial to understanding the satisfaction of income over…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,100 of…

A: Immediate annuity payments are brought by investors by paying company in lump sum. Formula for…

Q: Winston is saving for a trip that he'd like to take for his 25th birthday in three years. If he…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: annuity.he plans to deposit $500 into this account each month at 2.4 % annual interest compounded…

A: in this problem we have to find out future value FACTOR and from that we get future value.

Q: Karen wants to have $22,011 in her investment account in 6 years. If her bank offers an annual…

A: Here,RequiredAmount (FV) is $22,011Time Period (n) is 6 yearsInterest Rate (r) is 2%Compounding…