man
Q: ird is trying to determine the interest rate he is receiving on an annuity that he initially…
A: Annuities are uniform annual payments that are paid annually out of money that is deposited…
Q: How much money do you need to deposit in a bank account now so that you can years forever if the…
A: Withdrawal amount for every 6 years = $10,000 Number of years = 6 Interest rate (i) = 6% Deposit…
Q: What is the present worth of a 3 years annuity paying P300,000.00 at the end of each year, with…
A: Solution: Present value of annuity is the present value of annual amount to be paid/ received…
Q: Sammie Jo wants to begin saving for her retirement in 35 years. She researched and found an annuity…
A: The future value is equal to the sum of the future cash flows multiplied by the future value factor…
Q: Question 7 Mike has retired and has invested in the following annuity scheme: Investment: $250,000…
A: We need to rearrange the PV of annuity formula to determine the interest rate. The PV of ordinary…
Q: You owe your parents $15,000 (in present day dollars) and want to repay them in equal amounts the…
A: Present value = $ 15,000 Annual interest rate = 10.6% Number of compounding per year = 12 First…
Q: Assume you deposit $1,000 today in an account that pays 8 percent interest (compounded annually).…
A: Given: Present value = $1,000 Years = 4 Interest rate = 8%
Q: Your mother has an annuity that will give her monthly payments for 14 years. She tell you it is…
A: No. of years= 14PV of annuity= $124357Required rate= 11.56%Monthly Payment of annuity =?
Q: You deposit $725 today in a savings account that pays 6% interest, compounded annually. How much…
A: Future value, or FV for short, is a term used in finance to describe the estimated monetary value of…
Q: Darla James makes a deposit of $1200 every end of a semiannual period for 3 years. If the interest…
A: This is the calculation of the value in the future of a series of payments made at the end of a…
Q: How much will a $100 deposit made today be worth in 10 years if interest is compounded quarterly at…
A: Future value of the deposit includes the amount being deposited and amount of interest accumulated…
Q: (Refer to this word problem In order to plan for their retirement, a married couple decides to…
A: Quarterly payment (Q) = P 50000 r = 8% per annum = 2% quarterly = 0.02 n = 10 years = 40 quarters
Q: Suria hopes to deposit RM3,500 annually in an account that earns 10 percent compounded semiannually…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate…
A: The given problem is calculated using Excel. Interest amount = Opening balance X interest rate…
Q: Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9%…
A: b. $6,190.68 Explanation:We can calculate the future value of the CD using the compound interest…
Q: 4. A young engineer at the age of 25 wants to accumulate the amount P3.5M when he retires at the age…
A: Monthly deposits can be calculated using following formula in excel. PMT(rate, nper, pv, [fv],…
Q: What amount of money deposited 70 years ago at 3% interest would provide a perpetual (i.e. infinite…
A: Perpetual Amount Formula = Annual Amount/ Interest rate Annual Amount = $ 23,000 Interest Rate = 3%…
Q: I promise to pay you 25 annual installments of $5,000 starting five years from today. If the…
A: Present Worth: It is the present value of the annuity cashflows discounted over a period of time.…
Q: If Rachel invest 1700 today in a account that pays 6 percent interest compounded annually how long…
A: The answer is in the explanation.Explanation:To solve this problem, use the formula for compound…
Q: Assume that you contribute $240 per month to a retirement plan for 15 years. Then you are able to…
A: Here, To Find: Future value of multiple annuities =?
Q: If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will…
A: future value = present value *(1+rate)^n future value = 5000 * 1.090515
Q: A man wishes to have 280,000.00 when he retires 15 years from now. If he can expect to receive 4%…
A: Annual Interest rate is 4% Type of annuity is begining of year Future Value is P 280,000 Time period…
Q: 18. A man will deposit 200 with a savings bank at the beginning of each 3 months for 9 years. If the…
A: Question 18 pertains to annuity due. Annuity due is that annuity in which payments are made at the…
Q: Nicole is planning for retirement. she deposits $825 at the end of each year in an ordinary annuty…
A: Data given: Money deposited at the end of each year = $825 Interest rate=4% compounded annually.
Q: Hannah deposits OMR 500 in an account earning 5% compounded half yearly. What will be the interest…
A: The answer is option (b.) [OMR 109.20] Refer step 2 for explanation
Q: 5. Mr. Eden borrows from the bank P600, 000 at 12% pa compounded quarterly, agreeing to pay the loan…
A: First we need to calculate loan amount after 1 year by using compounding interest formula given…
Q: Appa deposits $4000 in an account earning 2.9% interest compounded monthly. How much will Appa have…
A: Nominal rate 2.90% Compounding Monthly Effective annual rate ((1+2.9%/12)^12)-1) Effective…
Q: •How much money must you invest today in order to withdraw P 14,766 annually for6 years if the…
A: PVA formula: pvadUE =A×1-11+RNR×1+R
Q: Robert borrowed $28,372.63 from the bank, which needs to be paid with the amount of $404.21 at the…
A: Under a loan arrangement, the money borrowed can be repaid in regular payments over a period of…
Q: 4. Suppose Ken invested $1 million in an ordinary annuity that earned 4.25%. a. How much would he…
A: We will solve this question with the help of PMT function in excel where, rate- Interest rate…
Q: If James deposits $2,000.00 in a fixed deposit for 1 year, what will be the difference in the…
A: Simple interest is based only on the principal amount. On the other hand, compound interest is based…
Q: For the next 13 years, you will deposit $2,250 every quarter in a savings account. The account pays…
A: Future value of an annuity is the total value of a series of equal payments made at regular…
Q: If you wish to accumulate $205,000 in 6 years, how much must you deposit today in an account that…
A: Future value (FV) = $205,000 Interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25% Period =…
Q: You have just been notified that you will receive $8,700 a year for the next 17 years from an…
A: We should accept the amount today in exchange for annual receipts would be the present value of the…
Q: What is the present value of a $1,340 per year annuity for five years at an interest rate of 12…
A: The interest rate represents the percentage of the principal amount either charged for borrowing or…
Q: 9. Implied interest rate and period Consider the case of the following annuities, and the need to…
A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…
Q: To save for retirement, Karls Harby put $350 each month into an ordinary annuity for 12 years…
A: Monthly Payment = 350 Time Period = 12 Years Future Value = $79,973.00
Q: Bob wants $300,000 in his retirement account when he retires in 30 years. How much does he need to…
A: This question can be answered in light of future value of annuity. Annuity is a payment of equal…
Q: Jasmine deposits 1000 into a savings account paying nominal interest rate of 6 percent compounded…
A: Here,Deposit Amount (PMT) is $1,000Nominal Interest Rate (r) is 6%Time Period (n) is 20…
Q: 1. A man wishes to bequeath to his daughter P50T 15 yrs from now. What amount should he invest now…
A: 1. The final amount needed to be received (F) = P 50000 Let the amount to be invested today = A…
Q: How much should you deposit in an account so that you can withdraw $5300 every year for the next 18…
A: Using excel PV function
Q: A person wants to establish an annuity for retirement purposes. He wants to make quarterly deposits…
A: Solution:- An equal amount withdrawn is made each period at end of period, is known as ordinary…
a man wishes his son to recieve P 216874 fifteen years from no at three different interest rates. the interest rate in first 64 months is 8.357% compounded bimonthly, 12.554% compounded quarterly for the next 57 months and 12.974% compounded monthly for the rest of the period. what amount should he invest now?
a. 52,361.117
b. 45,975.953
c. 36.758.024
d. 41,0661.545
Step by step
Solved in 2 steps
- if you invest $1,000 today With a compound annual interest rate of 5 %. What is the total amount accumulated after three years? Select one: n O a. 1000 Ob. 1110 O c. 1100 O d. 1157.6 Next page age ENG 07:11 INT 11/07/20211.What is the future value of $2,000 after 3 years if the interest rate is 8%, compounded semiannually?Select one:a. $2,854.13b. 2,781.45c. $2,324.89d. $2,530.64$2. Bilsl borrowed $100,000 today that he must repay in 10 annual end-of-year installments of $14,902. What annual interest rate is Bill paying on his loan?a.8.0%b. 7.5%c. 4.9%d. 5.4%3.ABC Company has $100 million in total assets and its corporate tax rate is 40%. The company recently reported that its basic earning power ratio (EBIT/Total Asset) was 15% and its return on assets (Net Income/ Total Assets) was 9%. What was the company’s interest expense?a. $15,000,000b. $ 0c. $2,000,000d. $ 6,000,0004.Marry has $500,000 and wants to retire. He expects to live for another 20 years, and to be able to earn 8% on his invested funds. How much could he withdraw at the end of each of the next 20 years?a. $53,431.83b. $50,926.10c. $55,119.76d. $54,764.405.How much would you pay for a stock that is expected to make a $1.50 dividend in…Question 3: 1 Salem wishes to withdraw AED 30,000 at the end of each year of the next 6 years from his bank account that pays 10% interest compounded annually. Required: a. How much does Salem need to invest today to meet this goal? b. Which annuity (ordinary annuity or annuity due) is better for Salem's situation
- Lidia deposits $800 at the END of each year for 8 years in a savings account. The account pays 12% interest, compounded annually. Lidia calculates that the future value of the ordinary annuity is $9839.75. What would be the future value if deposits are made at the BEGINNING of each period rather than the END? the options are: a. 8071.21 b. 9839.75 c. 11020.53 d. 11820.53ANSWER ASAP THE SUBQUESTIONSWhat would you prefer to receive if the interest rate is 20%? OA. $64 one year from now B. $95 four years from now OC. $84 three years from now O D. $73 two years from now.
- HareshYou deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year 10. At an interest rate of 10% per year, determine the annual worth equivalent through year 1 to 10. Select one: O a. 10282.48 O b. 6137.27 O c. 4540.89 O d. 5717.52 O e. 9862.739. I wish to borrow $400,000 to buy a house. If the current interest rate on the loan is 4.8% per annum, then my monthly repayment at the end of every month for the next 30 years is: Select one: a. $2,908.66 b. $2,098.66 c. $2,090.30 d. $1,111.11
- QUESTION 9 Two years ago, Donald invested $1,560.00. He has earned and will earn compound interest of 8.76 percent per year. If Virginia invests $1,640.00 in 1 year from today and earns simple interest, then how much simple interest per year must Virginia earn to have the same amount of money in 6 years from today as Donald will have in 6 years from today? Answer as an annual rate. O A rate equal to or greater than 38.20% but less than 58.20% O A rate less than 17.73% or a rate greater than 60.11% O A rate equal to or greater than 18.69% but less than 38.20% O A rate equal to or greater than 17.73% but less than 18.69% O A rate equal to or greater than 58.20% but less than 60.11%NikulbhaiProblem 6 What is the annual equal amount of money you have to set aside to guarantee yourself an annual income to perpetuity of $15,000 starting in 41 years from now? You make the first payment in three years from now and the last payment in 40 years. Assume an interest rate of 7% (EAR).
