If you desire to withdraw the given amounts over the next five years from a savings account that earns 5% interest compounded annually, how much do you need to deposit now? Draw the cash flow diagram to illustrate your results. Year 1 2345 Amount $1,200 $2,500 $4,000 $3,000 $6,000

Q: What is the future value of $3,000 saved for 6 years at 4% interest

A: FV = PV ( 1 + r )^t FV = Future value PV = present value i = interest rate compounded annually t =…

Q: Would you rather have $1,000 today or $1,250 in 3 years at a 8% annual interest rate compounded…

A: Future value can be calculated by using the following formula.

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A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: Tamara Massey received $1,500,000 from an insurance company after her husband's death. She wants to…

A: Interest rate per month can be calculated as follows: Thus, the interest rate is 0.67%

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A: Based on the need of question , simple mathematical calculations have to be done to find out values.…

Q: account today that earns 5.5% interest compounded monthly if you want to have $1500 saved in 2 years

A:

Q: Approximately how long will it take a deposit to triple in value if money is worth 12 % compounded…

A: here we can calculate how long will it take a deposit to triple in value as follow

Q: Michelle Hunter received $250,000 from an insurance company after her hus- band's death. Michelle…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: a) What is the future value of a series of payments of $6,000 each, at the end of 8 years, at 6%…

A: Ordinary annuity is the equal series of payment is made at constant interval at the end of each…

Q: Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the…

A: Loan amount (P)=$10,000 Rate of interest =12% compounded monthly  This loan is a fixed payment loan…

Q: A series of equal quarterly payments of $2,000 for 10 years is equivalent to what future lump-sum…

A: Quarterly payment (A)=$2000 Total number of quarters for which the payment is made =10×4=40…

Q: You deposited $400 in a savings account 20 years ago, earning 5% compounded quarterly.  Today, you…

A: In economics and finance, present worth (PW), also called present discounted value, is the value of…

Q: 7. What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: Annual Withdrawal = 29263 started from end of 11 year withdrawal increase by 10% annually r = 10%

Q: You will deposit 11,678 at 10% compound interest for 9 years, and then move the amount you would…

A: here we calculate the amount or money would at the end of the entire period by using the given…

Q: How many quarters will it take to triple an initial investment at an interest rate of 14% compounded…

A: The interest rate is the amount a lender charges a borrower and is a percentage of the…

Q: A $200,000 loan is to be repaid in equal yearly payments over 25 years at an interest rate of 4%…

A: First, we need to calculate the yearly payment for the loan. This can be done using the formula for…

Q: 5. Find the equivalent present worth of a series of annual payments if the first payment equals $500…

A: This is an example of uniform gradient series cash flow. The uniform gradient series starts from 4th…

Q: What sum deposited today at 9% compounded annually for 18 years will provide the same amount as…

A: Formula for the future annuity is given as: F = A (1+R)t-1RFormula for the presnet value P =…

Q: If you want to withdraw $10,000 at the the end of two years and $35,000 at the end of four years,…

A: At the end of two years, the cash flow is $10,000 and at the end of four years, the cash flow is…