Lovely is now 19 years old asnd would want P2.5 million on her 45th She intends to make 11 annual deposits to earn 9 percent per annum and subsequently rollover the amount she would have in her 30th birthday until her 45th year. How much should be her annual deposit for the next 11 years?

Q: ane will retire in 30 years. This year he wants to deposit an amount of €150,000 to become available…

A: The future value of today amount depends on the interest rate and period of deposit. The future…

Q: UVW will invest £1, 600 per quarter for her retirement at 3% compounding quarterly for 32 years. She…

A: Present value refers to the discounting of the future cash flow. The current value of the future…

Q: If she starts making deposit amounts in one year and her deposits increase at the inflation rate of…

A: Inflation:  The Wholesale Price Index's (WPI) annual percentage change in value is known as…

Q: c). If the father decides to deposit a single amount now instead of K300 at the end of each month,…

A: Data given: FV= k 24,500.90 [as computed in (a) ] r=12% p.a. (assumed compounded annually) n= 17-12…

Q: Starting on the day he retires, Bob wants to receive payments of $10,000 at the beginning of each…

A: Present value of the amount is the worth of that amount in current times that is expected to be…

Q: Warren reed just turned 40. He has decided that he would like to retire when he is 65? He tjinks he…

A: We have:Warren's Current Annual Contribution to Retirement account : $12,000Warren's current age :…

Q: Gary decides to set up a retirement fund by depositing $182 at the end of each week for 17 years.…

A: Calculation of Amount at the end of 17 years:To calculate the amount at the end of 17 years, the…

Q: 12. Don opened a retirement account with an APR of 3.25% compounded monthly. He is planning to…

A: Given information: Monthly deposits : $750 APR : 3.25% Time until retirement : 15 years

Q: Geoff has paid $19,000 for a retirement annuity from which he will receive $1,624 at the end of…

A: Future value The value of an investment in a particular future date is known as its future value.…

Q: Sheila is planning to retire in 9 years. For 9 years, at the end of each year Sheila plans to invest…

A: Annual investment (C) = $6,000 Interest rate (r) = 0.07 Number of investments (n) = 9 Final value =…

Q: Assume an APR of 12%. Bill wants to retire in 10 years from now. Starting a month from the time of…

A: Calculation of deposit to be made a month from now is shown below: Hence, deposit to be made…

Q: Puan Elly is planning to retire in 20 years and she plans begin withdrawing RM 50,000 anuallannually…

A: We need to use present value of ordinary annuity formula to calculate value of your retirement…

Q: At age43, you start saving for retirement. If your investment plan pays an APR of 5%and you want to…

A: The future value of deposits refers to the total amount of money that will be accumulated after a…

Q: Nilda expects to receive P20,940 at the beginning of each period per year in Social Security…

A: The series of payments at the beginning of each period is called an annuity due.

Q: Tina saved $679,000 for her retirement annuity. If she wants it to last her 30 years, earing 4.56%…

A: An annuity is a stream of equivalent periodic cash flows that occurs over a specific time duration.…

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

Q: When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest,…

A: Using PMT function in excel

Q: Shaikha is investing 121 today and will continue to do so at the beginning of each year for the next…

A: Annuity Due: It is possible to have a payment due immediately at the beginning of each month if you…

Q: Catherine Dohanyos plans to retire in 20 years. She will make 20 years of monthly contributions to…

A: Compound = monthly = 12 Time until retirement = tur = 20 * 12 = 240 Time after retirement = tar = 10…

Q: Edgar wants to have $600,000 in his retirement account in thirty years.if he begins with a single…

A: Paying someone or something, or being compensated, is an event or a procedure.

Q: Craig and sally just got married .they want to have $750.000 in a retirement account in 40 years .…

A: We need to use future value of annuity formula for calculation of periodic  deposit to achive the…

Q: atherine Dohanyos plans to retire in 15 years. She will make 15 years of monthly contributions to…

A: Variables in the question:Part IMonthly withdrawal (PMT)=$ 2500Rate=7.7% (compounded monthly)Monthly…

Q: At the age of 25 Riley starts saving for retirement. If his investment plans pay an APR of 6%…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: andez wishes to have $368,765 in a retirement account 15 years from now. What payment would Noime…

A: There is need of proper planning for the retirement and proper planning lead to have good money on…

Q: I am 25 years of age.

A: Current age is 25. After 4 years, individual starts depositing on monthly basis. Deposits are made…

Q: Bryce and David plan to purchase a home for $176,000. They will pay 20% down and finance the…

A: Down payment = 20% Loan (L) = 80% of $176000 = $140800 n = 15 years = 180 months r = 8.2% per annum…

Q: To secure the future of his son, a man plan to deposit P50,000 in a bank account every quarter for 5…

A: Solution:- When an amount is deposited each period at beginning of period, it is called annuity due.…

Q: John and Rosamond want to retire in 10 years and can save $170 every three months. They plan to…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: John and Rosamond want to retire in 10 years and can save $140 every three months. They plan to…

A: Future value refers to the total value of an investment or savings at a specified future date,…

Q: nd thereafter he wishe

A: The concept of time value of money states that worth of money changes with passage of time. This is…

Q: When she turned 30, Arwen started depositing $400 per month in a retirement account that earns 2.4%…

A: An annuity is a series of cash flows that contain a fixed amount for a specific duration at equal…

Q: Alyssa has $800,000 saved for retirement in an account earning 2.2% interest, compounded quarterly.…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: When Michelle retires in 12 years, she wants to receive $250.00 payments at the start o every month…

A: An annuity is the equal amount of payment that has to be paid over the period.

Q: Amy has an account that earns interest at a 10% annual effective rate of interest. She plans to make…

A: Annuity due is series of payments due at the beginning of each period. The future value of annuity…

Q: Sally has decided to invest $70 at the end of each mouth into a retirement plan that has an annual…

A: Computation:

Q: Debbie invests $5,500 in her IRA account each year for 40 years.  If she earns 7% return annually on…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: When Angela retires in 14 years, he wants to receive $750.00 payments at the start of every month…

A:

Q: John is currently 25 years old. He has $10,000 saved up and wishes to deposit this into a savings…

A:

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.