MANUAL SOLUTION AND CASH FLOW DIAGRAM Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to withdraw $8,000 three years after her last deposit, what will be theamount of money left in the bank after two years of her withdrawal? Use a 10% interest rate.

Before making any calculation let us first arrange these cashflows into a cashflow time line chart.…

Answered: Liz plans to deposit $10,000 in the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

What will be the deposit amount for Jane if she wants to buy a car within 7 years with a price of BDT2500000 and the Bank interest rate is 9%? Remember that Jane wants to make those payments in advance of each Quarter.
Jill wants to make a few deposits so that she can withdraw $5000 per year at the end of each year for the next 15 years. A deposit of X is made a year from now, a second deposit of 2X is made at the end of year 4, and a deposit of (X/2) is made at the end of year 8. What is the amount of X if the goal is to empty the account? Use 6% interest.
Polin needs to accumulate$10,000. To do so she plans to make deposits of $1250 per year with the first payment being made a year from today in a bank account that pays 12% annually. Her last deposit will be less than $1250 if less is needed to round out to $10,000. How many years will it take you to reach $10,000 goal and how large will the last deposit be?
Ann would like to have $20,000 saved in 7 years from today and can earn 3.8% on deposits. She plans to make sporadic deposits of $2,000 one year from today, $2,500 3 years from today, $500 at year 7. She plans to make one additional payment 4 years from today. How much must she deposit in 4 years to meet her goal?
Karen wants to have $22,559 in her investment account in 5 years. If her bank offers an annual compound interest rate of 1.2% with monthly compounding, how much should she deposit today? Round your answer to the nearest dollar.
You have decided to start a savings plan for your retirement. You plan to make an annual deposit of $50,000 each year for the next 6 years. The first deposit to be made one year from today. The bank pays a nominal interest rate of 5% annually. How much your savings account with the bank be if you leave the money in the bank to be withdrawn all in 19 years from today? Round to the nearest $0.01. DO NOT use the $sign. Do not use commas to separate thousands. For example if you obtain $1,433.728 then enter 1433.73; if you obtain $432 then enter 432.00 Your Answer: Answer
Ayesha wants to deposit 300 per year in a bank for the next 10 years. The bank pays annual interest rate of 8%. Future value is:
you need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer.
Sally enters into an investment that will guarantee her 5% year if she deposits $2045 each year for the next 10 years. She must make the first deposit one year from today. How much will she have when she makes her last payment 10 years from now? (Please use excel function = FV) to solve
You are planning to save for your retirement during the next 30 years. You want to be able to withdraw $120,000 from your savings account every year for the next 20 years after you retire. You plan to invest your savings in a local bank, which offers 8% APR compounded monthly, and make equal annual payments into this savings account. What amount should be deposited annually in this savings account in order to withdraw $120,000 every year after your retirement?
You want to be able to withdraw $25,000 from your account each year for 30 years after you retire. You expect to retire in 20 years. If your account earns 8% interest, how much will you need to deposit each year until retirement to achieve your retirement goals?
You plan on retiring in 25 years. In order to increase your retirement income, you open a retirement. account today and make a $20,000 deposit. In addition, you will deposit $5,000 every year for the next 25 years. Your plan is to start making annual withdrawals of $50,000 from the account, after you retire. Assuming the account is earning 7% rate of interest, how many years will it take, after you retire, before. the funds in your account are completely exhausted. Please include a written answer in a text box. (Assume annual compounding)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to withdraw $8,000 three years after her last deposit, what will be the amount of money left in the bank after two years of her withdrawal? Use a 10% interest rate.