Radhika is saving $1600 at the beginning of every six months in a retirement fund. Her goal is to accumulate $185,000 in her fund. If interest is 6.4% compounded semi-annually, how long will it take till she reaches her goal? Write your answer in years and months.

Radhika is saving $1600 at the beginning of every six months in a retirement fund. Her goal is to accumulate $185,000 in her fund. If interest is 6.4% compounded semi-annually, how long will it take till she reaches her goal? Write your answer in years and months.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

See similar textbooks

Related questions

Q: 4. Chapter 9 Homework

A: Prepare journal entry to record the issuance of bonds:

Q: Problem 9 Little Mermaid Company received an order of 5.000 automatic mixing machines. The cost per…

A: Answer 1: If the method used is charged to specific job No Particulars Debit Credit 1 Work in…

Q: 7. Homework Chapter 10

A: Preferred stock: The stock that provides a fixed amount of return (dividend) to its stockholder…

Q: Problem On January 1. 2021, Lilianne Company issued mandatorily redeemable preference shares in…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: You dream of endowing a chair in finance at the local university that will provide a salary of…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

Q: 8. Homework Chapter 10

A: Common stock refers to the shares of a company which are issued by company to general public for…

Q: Whispering Co. prepares monthly financial statements from a worksheet. Selected portions of the…

A: Adjusting entries is important for organizations to follow the accrual principle. These entries help…

Q: d. ratio analysis. B. A firm has liabilities of P30,000 and owner's capital of P90,000. The…

A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.

Q: QUESTION 9

A: In the journal of companies entries are required to make from which financial statements and income…

Q: 2. Chapter 9 Homework. Help

A: Prepare journal entry for the issuance of bonds:

Q: rejecting it? LO 3 8. Calculating IRR What is the IRR of the following set of cash flows? Year Cash…

A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the…

Q: CHAPTER CASE Stock Valuation at Ragan, Inc. agan, Inc., was founded nine years ago by brother sister…

A: Valuation of Stock: It is a method that employs conventional formulas to estimate the stock value…

Q: 2. Homework Chapter 10

A: In Stock split offers are given to the present investor's in extent of their current offers. It is…

Q: Number 8

A: The operating cash flows help to measure the cash generating ability of a company from its core…

Q: 1

A: Year Cash flows 0 -5000 1 3200 2 3200 3 3200 4 3200 5 3200 6 3200 7 3200 8 3200…

Q: The following book and fair values were available for Westmont Company as of March 1. Fair Value…

A: Journal entries are make to record transactions in chronological order under double entry accounting…

Q: 6. Homework Chapter 10

A: March 1 Journal entry:

Q: 5. Homework Chapter 10

A: Record January 1st transaction.

Q: 3. Chapter 9 Homework

A: Prepare journal entry to record the issuance of bonds:

Q: c. Calculate the amount of gain or loss from the sale of the asset under each of the depreciation…

A: Depreciation is an accounting practice that distributes the expense of tangible assets throughout…

Q: 9.7 a and b2

A: Depreciation expense is an expense which is charged on fixed assets over the useful years, there are…

Q: Tomasino's inventory records show the following data at January 31: Beginning inventory Jan. 1 Jan.…

A: First in First Out Method (FIFO) In first in first out method inventory valuation is taken from the…

Q: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?

A: In order to know the total manufacturing overhead cost assigned to Y, we need to first calculate the…

Q: Amy invested 5,300 pesos in an account that pays an annual interest rate of 3.4%, compounded daily.…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: 4. Homework Chapter 10

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: On October 1, Novak Ltd. purchased 9% bonds with a face value of $1,000 for trading purposes,…

A: Accured Interest is that amount which is earned by the investor but not received till the close of…

Q: Jse the following inventory data for Hooking Golf Company to compute the cost of goods manufactured…

A: Cost of goods manufactured is the total cost of finished goods produced during a certain period. It…

Q: 3. Homework Chapter 10

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A…

A: Net profit refers to the term which is used in accounting and it states the amount of profit which…

Q: 1. Homework Chapter 10

A: Dividends:This is the amount of cash distributed to stockholders by a company out its earnings,…

Q: The Loughran Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors…

A: Expected maturity value = [100*(1-default rate)] + [100 * default rate*Percentage receivable on…

Q: Use the following information for problems g9 and 10.o.oos 2omle yslgaib of oli sula awolls Isbom…

A: Financial Performance To measure the financial performance of the entity first to calculate the…

Q: Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct…

A: Introduction: A job cost sheet is a list of a job's real costs. The management team receives the…

Q: 150 Cost Accounting Problem 9 Miracle Company provides you with the following information January 1…

A: The question is related to Cost Sheet. The details for the month of January is given. The question…

Q: Which of the following is correct about control risk? Select one: a. None of the above b. It is the…

A: Control risk is the risk that a material misstatement in the financial statements will not be…

Q: ABC Corporation reports the following information for 2020. Based on these figures, what is ABC's…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning…

Q: 9. All encumbrances and liens shown on the title report, other than those waived or agreed to by the…

A: All encumbrances and liens shown on the title report, other than those waived or agreed to by the…

Q: On the first day of its fiscal year, Chin Company issued $20,400,000 of 5-year, 10% bonds to finance…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: 31. What is the total cash generated by PAGTALUNAN Company from factoring and assigning the accounts…

A: On its second year, PAGTALUNAN, Inc. thought of expanding its business. i.What is the total cash…

Q: Under a perpetual inventory system a. there is no need for a year-end physical count O b. the…

A: The perpetual inventory system is defined as the method of recording inventory in the book of the…

Q: Two months after completing the audit, an auditor leaves an audit firm and takes the role of the CFO…

A: In the given case the auditor joins their audit client as a CFO after completing the audit. Since…

Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

3. Radhika is saving $1600 at the beginning of every six months in a retirement fund.
Her goal is to accumulate $185,000 in her fund. If interest is 6.4% compounded
semi-annually, how long will it take till she reaches her goal? Write your answer in
years and months. ((

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Analysis

VIEW

Step 2: Calculation of time taken to reach future goal.

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,900 per month for twenty years. (a) How much money must she deposit if her money earns 7.8% interest compounded monthly? (Round your answer to the nearest cent.)___________ $ (b) Find the total amount that Holly will receive from her payout annuity. Thank you!
Leon would like to have a retirement income of $3,000 per month (beginning of month payments). How much must he have in his retirement fund on the day that he retires if he plans to live for 27 years? Assume that the account will earn j12=3.6%. Your Answer: Answer
Cynthia wants to accumulate at least $40,000 by depositing $1,200 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does she need to make in order to reach her goal? Round to the next payment b. How long will it take Cynthia to reach her goal? year(s) month(s) Express the answer in years and months, rounded to the next payment period
Henry would like to have a retirement income of $3,000 per month (month-end payments). How much must he have in his retirement fund on the day that he retires if he plans to live for 25 years? Assume that the account will earn j12=3.6%.
Tanja wants to establish an account that will supplement her retirement income beginning 25 years from now. Find the lump sum she must deposit today so that $600,000 will be available at time of retirement, if the interest rate is 6%, compounded quarterly. How much must Tanja invest? P=$ (Round to the nearest cent as needed.)
K. Tanja wants to establish an account that will supplement her retirement income beginning 30 years from now. Find the lump sum she must deposit today so that $400,000 will be available at time of retirement, if the interest rate is 10%, compounded quarterly. How much must Tanja invest? P= (Round to the nearest cent as needed.)
Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?
Answer the following questions. Show your complete solution. 1. Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity? 2. Cheska is saving for her dream cellphone. She deposits 2,000 pesos at the end of each month that earns 5% per year compounded semi-annually. Find the amount in the account after 1 1⁄2 years. 3. Janine wants to but a lot which cost 1 million pesos. She plans to give a down payment of 20% of the cost, and the rest will be paid by financing at monthly interest rate of 2% for 10 years in equal monthly installments. What will be the monthly payment? 4. Christopher wants to have 50,000 pesos in 4 years by saving equal regular payments. He can make a deposit at the end of each month in account that earns 8.5% per year compounded quarterly. How much must he deposit to achieve his…
Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?
Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How much will she have then, if the interest rate is 6.48% compounded weekly and her account starts with $13487 already deposited?
Henry would like to have a retirement income of $3,000O per month (month-end payments). How much must he have in his retirement fund on the day that he retires if he plans to live for 30 years? Assume that the account will earn j12=3.6%. Your Answer: Answer
6. If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need to deposit each year for these 7 years? Assume that your money will earn 10 percent per year. 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average earning of 11 percent over the 40 years until her retirement, what will be the value of her retirement account?