Stacey deposits $ 4500 at the end of each year for 30 years into an investment fund which pays out interests at annual effective interest rate of 3 %. He is only able to reinvest this interest at an annual effective interest rate of 2 %. What is the accumulated value of his investments at the time of the last investment. Explain your work.

Q: Bing gave $800 to her cousin. As a token of gratitude, her cousin gave her $1, 520 at the end of the…

A: Details given are : Present value = $800 Future value = $1520 Time period = 1 year From above…

Q: ally into a life insurance fund for the next 5 years, at which time he plans to retire. Instead of a…

A: The given problem can be solved using FV and PMT function in excel. FV function computes amount…

Q: Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank…

A: Future value of Annuity: It is  the total value of annuity payments  accumulated at a specific  time…

Q: wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10…

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A: Annuity grow by some constant amount of gradient and due to this growth amount grow much amount.

Q: Morgan invested $1700 for four years compounded semi annually. If the future value of the investment…

A: Data given: PV= $1700 n=4 years  rate=? (compounded semi-annually) FV=$2195.68   Required: Annual…

Q: John has $3200 monthly in extra discretionary funds that he would like to invest in his future…

A: Given Information Annuity amount = $3200 Made equal amount annuity by dividing into 2 parts Interest…

Q: Jabari is planning for his retirement in 5 years’ time. He plans to deposit $200,000 immediately…

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Q: John and Marsha are in an argument about an investment which requires a series of six annual…

A: Interest Rate = 5% Cash Flows: Year Cash Flow 1 30000.00 2 30000.00 4 30000.00 5 30000.00…

Q: Al Ferris has $70,000 that he wishes to invest now in order to use the accumulation for purchasing a…

A: Approach to Solving the Question:1. Define Decision Variables:Ai: Amount invested in Investment A at…

Q: Pete's Real Estate is currently valued at $79,000. Pete feels the value of his business will…

A: The question is based on the concept of Financial Management. In order to calculate the price Pete…

Q: Anton deposits P400,000 today and another P200,000 in 6 years into a fund paying simple interest of…

A: Simple interest is a method of calculating the interest charged on a loan or the interest receivable…

Q: Your client has been given a trust fund valued at $1.19 million. He cannot access the money until he…

A: TVM refers to the capacity of money to earn interest because money earned earlier is considered more…

Q: Madelaine has $1 million as a lump sum in her superannuation when she retires in at 65 years old.…

A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

Q: Asif received a bonus of $10 000, which he immediately invested in a fund earning 9.25% compounded…

A: Future value of the amount is the amount of deposit done and amount of interest accumulated over the…

Q: Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six…

A: Present value is the current date value of the future expected cash flows of the annuity fund.…

Q: receives his first $121,890.95 payment in 3 years and his last $121,890.95 payment in 7 years, then…

A: The rate of return is used to assess an investment's profitability. It determines the gain or loss…

Q: Tom has decided to invest $400 quarterly for 4 years in an ordinary annuity a 8%. As his financial…

A: Quaterly investment amount is $400 Time period is 4 years Interest rate is 8% To Find: Cash value…

Q: Calculate the amount of each automatic withdrawal, assuming the withdrawals are made at the end of…

A: We can determine the semimonthly amount using the formula below:In the formula above r = periodic…

Q: You contribute $1,000 annually to a retirement account for eleven years and stop making payments at…

A: Withdrawal using present value (PV) of funds at retirement refers to the strategy of calculating the…

Q: AC entered into an investment fund four years ago. The investment fund has an interest rate of 3%…

A: Interest rate is 3% compounded quaterly for first 4 years Interest rate for next 5 years us 4.5…

Q: John Atomic is retiring at the end of next year. He would like to ensure that his heirs receive…

A: Present value of perpetuity = Annual cash flow/Rate of return

Q: Ashton invested $8450 for five years in his savings account that was earning 3.2% compounded…

A: To calculate the future value we will use the below formula   Future value = P*(1+r)n Where Invested…

Q: Kevin deposits $10,000 at the beginning of each year for ten years, into a financial instrument…

A: Annuity refers to a regular stream of cash flows which occurs over a definite period. If it occurs…

Q: Claire Fitch is planning to begin an individual retirement program in which she will invest $2,200…

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: Jake Werkheiser decides to invest $8000 in an IRA at the end of each year for the next 6 years. If…

A: The future value refers to the value of an investment or an amount of money at a specified point in…

Q: Jason received an amount of 1000.00 from his grandpa as a birthday gift. He decides to invest the…

A: Principal Amount, P = 1,000 Interest rate, r = 10% = 0.10 Time, t = 5 years Future Value, FV = P…

Q: Maria wishes to accumulate $8,000 by the end of 5 years by making equal, annual, end-of-year…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Harper expects to live for 20 years after she retires at 65. If her investments continue to earn the…

A: I have provided the answer above for you. See the answer I provided above to understand the given…

Q: Your grandfather placed $5,000 in a trust fund for you.  In 12 years, the fund will be worth $9,500.…

A: Initial Value = $5,000Final Value = $9,500Number of years (n) = 12We need to calculate the annually…

Q: Jessica invests $4500 today and another $1,000 a year from now until 5 years. She also increases her…

A: Investment in year 0 = 4500 for 10 years Investment in year 1 = 1000 for 9 years Investment in year…

Q: Jaime Bickers invests $4000 at the end of each semiannual period for 8 years. His financial advisor…

A: Calculate the future value as follows:

Q: In order to fund his son’s higher education, Abdullah decided to invest $1000 quarterly for 6 years…

A: Future value is the worth of the current amount in future specified date at given interest rate. The…

Q: Shauna wishes to establish a trust fund from which her son can withdraw $50,000 every six months for…

A: Future value (FV) could be a budgetary concept utilized to decide the worth of speculation or cash…

Q: Rapi Tulpo invests Php1,000 in a Bank that doubles his money in five years. To what annual interest…

A: Investment means an asset(financial assets or fixed assets) that is purchased to generate additional…

Q: JACK plans to retire after 20 years. Deposit account in a bank for this He thinks to open it. The…

A: Retirement Time (N) = 20 years Interest rate = 12% p.a. Deposits every quarter End of quarter…

Q: inflation-adjusted lifestyle of $188,000 a year for all 28 years, the client's investments would…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…