If Joe has $1,000 and invests it into a mutual fund that returns 10%, what willI be his Future Value in 5 years if the investment compounds annually?
Q: ) Your parents have an investment portfolio of $400,000, and they wish to take out cash flows of…
A: Ordinary annuity is a type of annuity in which fixed interest payments are made at the end of each…
Q: John has an investment opportunity that promises to pay him $16,000 in four years. He could earn a…
A: Formula used to calculate present value.
Q: an investor paid$58000 for an investment. he will get$5780,for every 2 years(forever). what is his…
A: 5780= [58000×{(1+r)^no. of years)}]-58000 5780= [58000×{(1+r)}]-58000 [{(5780+58000)÷58000}-1]÷2…
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A: Data given: FV=2 * PV N=9 years Compounding=Quarterly Required: Quarterly compounding interest…
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A: INTRODUCTION Present value of a cash flow needs to be multiplied by the CVF factor in order to…
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A: The present value of an annuity is the current worth of the series of future cash flow at a certain…
Q: If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…
A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…
Q: Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10…
A: We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive…
Q: What would the value of your investment be after five years if you invest P5,000 in a financial…
A: The value of the investment can be calculated with the help of future value formula. Since the…
Q: If you invest $10,000 in a savings account that earns 5% interest per year, how much will you have…
A: Investment amount = $10,000Interest rate = 5%Period = 10 years
Q: Roy is going to receive a payment of $5.000 one vear from today, He earns an average of 6% on his…
A: Present Value = Future Value / (1+r)^nWhere,r = rate of interest per period 6%n = no. of compounding…
Q: Shekhar plans to invest $1,820 in a mutual fund at the end of each of the next 3 years. If his…
A: Information Provided: Annuity payments = $1820 Annual Period = 3 years Interest rate = 4%…
Q: You plan on saving $15,200 this year, nothing next year, and $17,500 the three years after that. You…
A: The concept of time value of money will be used here. As per the concept of time value of money the…
Q: You want to retire soon. When you finally retire, you want your investments to provide you with an…
A: Retirement needs: 150,00 means 15,000 15,000 each year for next 40 years N = 40 Annual Interest…
Q: You know that you'll inherit $10,000 in 19 years. If you borrow $6,000 now and plan to pay it off…
A: Future value (F) = $10,000Initial borrowing amount (P) = $6,000Period (n) = 19 yearsAnnual interest…
Q: You just inherited some money, and a broker offers to sell you an annuity that pays $4,300 at the…
A: Present value of annuity is computed as follows:-PV = A*wherePV= Present value of annuityA= periodic…
Q: Larry James is planning to invest $25,500 today in a mutual fund that will provide a return of 0.08…
A: Future Worth is value of current amount at future point of time. It is computed by compounding that…
Q: An investor is considering the following opportunity: He will put capital into a start-up company…
A: Present value is a financial concept used to determine the current worth of future cash flows. It…
Q: An investor is 50 years of age today. He will retire at the age of 60. In order to receive Tk.…
A: Retirement planning is the planning for securing the future from uncertainties. This is to be done…
Q: If Pete has $1,000 and invests it into a mutual fund that returns 10%, what will be his Future Value…
A: Future value is expected value at a certain date in future at given rate of interest. Given: Present…
Q: Assume that you just inherited an annuity that will pay you $10,000 per year for10 years, with the…
A: When the repeated payments are made at the beginning of a specific period, it is known as annuity…
Q: Chuck Tomkovick is planning to invest $25,000 today in a mutual fund that will provide return of 8%…
A: INTEREST RATE (RETURNS) 8% YEARS 10 PRESENT VALUE $25,000 PMT 0
Q: Ken Francis is offered the possibility of investing $2,745 today; in return, he would receive…
A: Interest rate: It can be defined as the percent of the principal loan balance, charged by the lender…
Q: You plan to retire in 20 years. Use present value tables to calculate whether it is better for you…
A: Future value: It can be defined as the value of an investment or any asset at a specified future…
Q: If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to…
A: Given information: Present Value = $10,000 Interest Rate = 8% Annuity Payouts = $2,000
Q: Your friend offers to pay you an annuity of $2,500 at the end of each year for 10 years in return…
A: Given: Annual payment = $2,500 Years = 10 Interest rate = 5.5%
Q: an annuity that pays $1,000 at the end of each year for 5 years. You could earn 6% on your money in…
A: The given problem can be solved using PV function in excel. PV function computes present worth for…
Q: If boo start investing P30,000 now in a trust fund that pays 4% compounded quarterly. How much money…
A: Use the Excel FV function with the following inputs to determine the value of investment. RATE = 1%…
Q: You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the…
A: Annuity means the person will invest some amount today and the person will receive certain fund…
Q: An investor is considering an investment that will pay $2,150 at the end of each year for the next…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Sally enters into an investment that will guarantee her 5% year if she deposits $2045 each year for…
A: Therefore, Sally will have approximately $33,310.90 when she makes her last payment 10 years from…
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- If you invest $10,000 in a savings account that earns 5% interest per year, how much will you have in 10 years? How does this amount compare to investing the same amount in a mutual fund that earns an average of 8% per year?If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years?You are planning to contribute $8,000 a year into a mutual fund that earns an average of 8% per year. If you continue to contribute for the next 10 years, how much would you have in your account?
- Shekhar plans to invest $1,820 in a mutual fund at the end of each of the next 3 years. If his opportunity cost rate is 4 percent compounded semiannually, how much will his investment be worth after the last annuity payment is made? Use the equation method to calculate the worth of the investment. note Future value = Ordinary annuity x {[(1 + r)n - 1] / r}You have a chance to buy an annuity that pays $1,000 at the end of each year for 5 years. You could earn 6% on your money in other investments with equal risk. What is the most you should pay for the annuity?Sam Hart decides to invest $70,000 in a fund that will earn 6% annual interest, compounded semiannually. How much will his investment be worth in three years? Draw a timeline to illustrate the problem. What is the future value of your investment? (Use the present value and future value tables, a financial calculator, a spreadsheet or the formula method for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest cent, $X.XX.)
- You want to retire soon. When you finally retire, you want your investments to provide you with an income of $150,00 each year for the next 40 years. If the annual interest rate guaranteed to be 6 percent or higher, what is the present value of that stream of payments (or how much of a deposit do you need in order to get that payment amount per year)?You have OMR 12,000 in cash. You can deposit it today in a mutual fund earning 8.2 percent semiannually; or you can wait, enjoy some of it, and invest OMR 11,000 in your brother’s business in two years. Your brother is promising you a return of at least 10 percent on your investment. Whichever alternative you choose; you will need to cash in at the end of 10 years. Assume your brother is trustworthy and that both investments carry the same risk. Which one will you choose?You expect to receive a payout from a trust fund in 5 years. The payout will be for $12,200. You plan to invest the money at an annual rate of 6.9 percent until the account is worth $20,800. How many years do you have to wait from today?
- Roy is going to receive a payment of $5,000 one year from today. He earns an average of 6% on his investments. What is the present value of this payment?You plan on saving $15,200 this year, nothing next year, and $17,500 the three years after that.You will deposit these amounts into your investment account at the end of each year. What willyour investment account be worth at the end of year six (six years from now) if you can earn 15percent on your funds?You can invest in a mutual fund that generates 9% return per year. If you want to have $700,000 in your account 10 years from now, how much would you have to deposit, at the end of each year, for the next 10 years?