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- C. D. Rom has just given an insurance company $32,500. In return, he will receive an annuity of $3,800 for 20 years. At what rate of return must the insurance company invest this $32,500 in order to make the annual payments? Use Appendix D for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Rate of return %Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.Find the amount accumulated in an account where $25 is deposited monthly for 10 years at 2.5% interest compounded monthly. Assume the account currently has $450 in it. Round your answer to two decimal places if rounding is necessary. The $ sign is already listed next to the answer box, so do not type a $ sign in your answer.
- You take out an $19,000.00 car loan that calls for 48 monthly payments at an APR of 6.7%. Complete an amortization table and answer the following questions. You must complete the amortization table to answer the questions (otherwise your answers could be off due to rounding error... all totals are based on intermediate numbers that have not been rounded). The answer you enter must be rounded (correctly) to two decimal places. You do not need to include commas or dollar signs in your answer. For example, the end balance after 41 months would be entered as 3096.82. What is the total amount you paid on the loan?You take out an $19,000.00 car loan that calls for 48 monthly payments at an APR of 6.7%. Complete an amortization table and answer the following questions. You must complete the amortization table to answer the questions (otherwise your answers could be off due to rounding error... all totals are based on intermediate numbers that have not been rounded). The answer you enter must be rounded (correctly) to two decimal places. You do not need to include commas or dollar signs in your answer. For example, the end balance after 41 months would be entered as 3096.82. What is the total interest paid on the loan?How much would you have in your savings account if you put $1,902 in an account today that pays 8% for 7 years? For this problem, use the mathematical formula to find the answer and show all of your work (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- For each of the following situations, identify (1) the case as either (a) a present or a future value and (b) asingle amount or an annuity, (2) the table you would use in your computations (but do not solve the problem),and (3) the interest rate and time periods you would use. A sweepstakes agency names you a grand prize winner. You can take $225,000 immediately or elect to receive annual installments of $30,000 for 20 years. You can earn 10% annually on any investments you make. Which prize do you choose to receive?Suppose a woman has decided to retire as soon as she has saved $800,000. Her plan is to put $950 each month into an ordinary annuity that pays an annual interest rate of 2.4%. In how many years will she be able to retire? She will be able to retire in approximately years. (Round to the nearest year as needed.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer To see what to study next, go to your Study Plan. 99+ a 近Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much money will you have in the account in 19 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g b. How much will you have if you make deposits for 38 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g а. Future value $ 324,555.08 b. Future value $ 2,462,818.38
- PART A: Time Value of Money Please indicate your final answers (rounded to the nearest dollar) in the boxes provided. Unless the problem states otherwise, assume annual compounding of interest. 1. You currently have a balance of $200,000 in your retirement account. You expect to contribute $7,500 to your retirement account at the end of each year for the next 30 years and your employer will match your contributions; thus, the annual end-of-year contributions to your retirement account will be $15,000. If you earn 8% on your retirement account, how much money will you have in your account when you retire in 30 years? $ 2. You have a 4-year-old daughter and want to have $120,000 in her college fund when she starts college. You expect to earn a 7% return on her college-fund investments. If you want to make 14 equal-sized end-of-year deposits into your daughter’s college fund, how much do you need to deposit each year to have…You invest $ 500 today and receive $ 750 at the end of 5 years. a. DETERMINE the internal rate of return, using hand interpolation. Write answer to 2 decimal places. b. SUBMIT the procedures via the spreadsheet icon. Show all your computations. -Label all final answers with the correct units, if applicable. Unless otherwise stated, use 4 decimal places for intermediate computations of interest rates (if needed) then round off final answers to two decimal places. For monetary amounts, use 2 decimal places even for intermediate computations. 3. Aika wishes to set aside a total of P60,000 as savings for the year 2022. She plans to deposit her savings at a bank that offers 3% annual interest rate, compounded monthly. She is deciding how to spread out these deposits during the year. For options A and B given below, determine the better option by finding the withdrawable balance by January 1, 2023. A. P30,000 deposits on June 1 and September 1, 2022 B. P20,000 deposits on June 1, August 1, and October 1, 2022 3