Problem 3: Your parents deposit $1000 in your bank account paying 5% per year. What would be the balance in your account after 10 years?

Q: In order to help you through college, your parents just deposited $35,000 into a bank account paying…

A: The annuity that can be withdrawn based on the amount that the parents have deposited at 8% interest…

Q: Give me correct answer with explanation

A: The problem is asking us to find the future value of an investment. The future value is the amount…

Q: (1)You decide to purchase a new home and need a $100000 mortgage. You take out a loan from the bank…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: You want able to withdraw 15,000 each month for 15 years. your account earns 3 1/4% interest. a.…

A: Investments are the ways in which individuals and corporations park and save their money and funds…

Q: Part I: Joe just graduated from College and has found a nice job. As a graduation gift his father…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: If you want to have $60.000 in 8 years, how much do you need to deposit in the bank today if the…

A: Deposit required today = FV/(1+r)n Where FV - Future value = $60,000 r - Interest rate = 9% n -…

Q: Karla Lopez deposit $3000 a year into her retirement account if these phones have an average running…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: (Solving for PMT of an annuity) To pay for your child's education, you wish to have accumulated…

A: PMT is a series of cash flows (annuity) and can be paid/received at the end of each period, called…

Q: 37. Savings Gabriel Branson invested his summer earnings of $3000 in a savings account for college.…

A: Simple Interest = Principal × Interest Rate × TimeHere,Principal = $3,000Interest Rate = 1.5% or…

Q: You Save Bank has a unique account. If you deposit $7,250 today, the bank will pay you an annual…

A: In this case, the bank uses different interest rates for different periods, so we'll need to apply…

Q: Max the mouse needs $10,000 in 5 years. How much should Max deposit today if the bank has a simple…

A: Simple interest is the type of interest that is calculated on the original amount invested and not…

Q: 1.1 Suppose you received R1000 from your grandparents on your 18th birthday, which was 17 years ago.…

A: Savings account earn compound interest. To calculate final account balance we can use the formula…

Q: Sally plans to make continuous deposits to a savings account. She wants to accumulate $40,000 in 10…

A: Annual payment refers to the amount paid on annual basis for a specific period of time on which…

Q: suppose you have 100 dollars in a saving account and the bank adds 10 percent per year to the…

A: As per Time Value of money, Future value = Present value * (1+rate)^n

Q: A) calculate the amount of money you will have after 25 years if you deposit $150 each month in an…

A: Monthly deposit: Monthly deposits are instructions to the bank or financial institution to take a…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: 2. If you deposit $2500 two years from now in a bank account that pays 4% compounded annually, how…

A: The amount that is deposited today will be more in dollar terms at certain future date due to the…

Q: You want to buy a new sports car 3 years from now, and you plan to save $4,800 per year, beginning…

A: FV of annuity= pmt*((1+r)^n-1) /r

Q: You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The…

A: present value in savings account = $100 interest rate annually = 2% future value = $120 time period…

Q: b. You have a $20,000 note payable which is due in three years. How much money must you put into a…

A: Solution d: N = 1 PV (Future value of at the end of 3 years) = $20,000 Interest rate (I) = 3%

Q: 27. You hope to accumulate an account balance of $20,000 in 4 years by making a single deposit…

A: We need to calculate the amount to be deposited today - present value (PV)Future Value (FV) =…

Q: If you want to have $22,327 in fifteen years, how much do you need to deposit in a bank account…

A: The deposit required today is calculated as the present value.

Q: year from now), in an account paying 8% interest per year. You will make your last deposit 30 years…

A: Information Provided: Savings each year = $5000 (From age 35 to 65) Interest rate = 8% Period from…

Q: Question - : Your child is going to college for the next 4 years. You are setting up a college fund…

A: Present value (PV) is a money related concept that measures the current value of future cash streams…

Q: Suppose you have been saving for the last 4 years to buy a new mountain bike. This year you will…

A: We need to use future value of ordinary annuity formula below to calculate total savings in bank…