Silver & Co makes monthly (end-of-period) payments of $300 into a retirement plan earning 12 percent per year compounded monthly for 40 years. How much interest will it have earned in 40 years? $3,385,431.75 $2,617,529.11 $3,529,431.75 $2,761,529.11 $144,000

Silver & Co makes monthly (end-of-period) payments of $300 into a retirement plan earning 12 percent per year compounded monthly for 40 years. How much interest will it have earned in 40 years? $3,385,431.75 $2,617,529.11 $3,529,431.75 $2,761,529.11 $144,000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

See similar textbooks

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Using the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
The value of a retirement savings account with an annual contribution of $600 (contributions made at the end of each year, including the last year), and an APR of 5.4% after 40 years is $79,960.27. Find the value of this retirement savings account after 52 years. Round your answer to the nearest cent. OA. $151,304.82 OB. $165,660.72 OC. $160,075.29 OD. $154,695.52 OE. $169,319.35
1
please help with this Q
Calculate the present value of a retirement fund if you put $1,750 in your savings account at the end of each of each quarter for the next 35 years? Assume that your savings account pays 8% compounded quarterly. O $20,277.13 O$82,030.04 O $83,670.64 O None of the answers are correct
Jason Horton works for Chevron as a welder on offshore drilling rigs. His retirement plan contributions are $3800 at the beginning of each 6-month period. Assume that the account grows at 6% compounded semiannually for 15 years. Find the (a) future value of the annuity and (b) the interest earned. * $52,547.60; $9,447.60 $9,947.60; $55,547.60 $55,547.60; $9,947.60 Other:
A man wishes to have 280,000.00 when he retires 15 years from now. If he can expect to receive 4% annual interest, how much the set aside in each of 15 equal annual beginning of year deposits? O a. P13,544.68 O b. P13,454.68 O c. P13,445.68 O d. P12,445.68
A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used to establish an annuity that earns 6%, compounded quarterly, and pays $5500 at the end of each quarter. How long will it be until the account balance is $0?
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 29 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 29. The annuity will extend from the EOY 30 to the EOY 36. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest and annuity table for continuous compounding when i=8% per year. a. The accumulated savings amount at the end of 29 years will be $275384. (Round to the nearest dollar.) b. The value of the annuity will be $41655. (Round to the nearest dollar.)
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $ 2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 25 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25 The annuity will extend from the EOY 26 to the EOY 34 What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest annuity table for continuous compounding when i=8% per year
A company wants to have $40,000 at the beginning of each 6-month period for the next 4 1/2 years . If an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.93%, compounded semiannually? ANSWERS THAT ARE INCORRECT : 3863.39, 3863.30, 21855.90, 21855.9, 21855, 21855.87, 21885.87,21885.8,21885.9