suppose you have $5,000 in a mutual fund in your IRA. Suppose also that you put $4,000 into the mutual fund at the end of each year over the next 20 years. if the mutual fund earns 8.5% annually, how much will it be worth after 20 years?

Q: Assume that investing $500 in a fund today will give you a return of $530 a year later. On the other…

A: See the explanation belowExplanation:No, based on the information provided, choosing the bank's…

Q: Next year, you will begin receiving $173 per year in perpetuity from a family trust fund (first…

A: In the given question we require to compute the present value of future cashflows from perpetuity.

Q: You invest $10,000 into an account that earns 4.5% simple interest each year. Give an equation…

A: Amount invested in the account is $10,000  Simple interest rate is 4.5% Time period is 30 years To…

Q: Suppose you make 30 annual investments in a fund that pays 6% compounded annually. If your first…

A: Annuity-An annuity is a stream of cash flows that exists for a fixed period of time. Depending on…

Q: avings currently are invested in an investment product generating 5.2% EAR. You are considering…

A: Value today of the investment is the present value of cash flow from the investment based on the…

Q: You have a chance to buy an annuity that pays Php2,500 at the end of each year for 3 years. You…

A: As per the given information: Annual payment = Php2,500Interest rate = 5.5%Period - 3 years To…

Q: You have set up a life annuity with a present value of $250,000. If your life expectancy at…

A: Using the PMT function in excel

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: You have just won a lottery that pays out $2.25 million in a lump sum. If you invest this in a…

A: Present Value = pv = $2.25 millionRate of Return = r = 7.5%Time = t = 30 Years

Q: You have $15,000 that you would like to invest for the next 32 years. One option is to invest the…

A: One way to calculate the future value of any invest is to calculate its value after specific period…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: A pension fund is expected to produce a cash flow of $1,000 at the end of the upcoming year. This…

A: Here, Year 1 cash flows is $1000. This cash flow are increasing 10% for five years and after five,…

Q: You are given $200 each year starting next year and finishing in 15 years (t = 15). If the discount…

A: We need to use present value of annuity due formula to calculate present value of cash flows stream.…

Q: Suppose you begin saving for your retirement by depositing $2,000 per year in an IRA. If the…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Suppose you put $200 into a bank account at the annual interest rate of 7%.  *Round your answer to…

A: In this we have to find the future value of given value.

Q: Your pension plan is an annuity with a guaranteed return of 5.8% per year (compounded quarterly).…

A: To solve this problem, we need to break it down into two main parts:1. Accumulation Phase (Before…

Q: Larry James is planning to invest $25,400 today in a mutual fund that will provide a return of 0.10…

A: We need to find the future value of investment of Mr.Larry James. Future value is the amount reccive…

Q: If your trust fund promises to pay you $25, 000 on your 24th birthday (6years from today) and earns…

A: Present Value is the current worth of an amount to be received in future. To calculate the present…

Q: A pension fund must pay out $1 million next year, $2 million the following year, and then $3 million…

A: Solution:Duration refers to that point of time where reinvestment risk equalizes the interest rate…

Q: Beginning a year from now, Bernardo O’Reilly will receive $20,000 a year from his pension fund.…

A: Present value is the current worth of future payments from the specific investment.…

Q: a) You deposit $200 monthly into an annuity with the goal of accumulating $180,000 after 30 years.…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You…

A: Formula for Calculating Future Value = PMT [(1+i)n - 1] / i Here, PMT = 1600              i    =…

Q: You just inherited some money, and a broker offers to sell you an annuity that pays $4,300 at the…

A: Present value of annuity is computed as follows:-PV = A*wherePV= Present value of annuityA= periodic…

Q: A trust fund will pay you $1000 per month for life once you turn 18. You are currently 11. Interest…

A: Monthly Payment = 1000Interest Rate = 4.95% Compounded QuarterlyNumber of compounding periods =…

Q: Larry James is planning to invest $25,500 today in a mutual fund that will provide a return of 0.08…

A: Future Worth is value of current amount at future point of time. It is computed by compounding that…

Q: Suppose you are 30 years old and would like to retire at 60. Moreover, you would like to to have a…

A: Using excel PMT function

Q: Now let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from…

A: Annuities are regular stream of cash flows as payments which occur for a defined period and at a…

Q: 4) A person puts 200 dollar to a pension fund every month. This is invested in Eurobonds yielding %8…

A: Compound = Monthly = 12Payment = p = $200Yielding = r = 8 / 12 %Time = t = 20 * 12 = 240

Q: You buy an annuity that will pay you $24,000 a year for 25 years.  What is the value of this annuity…

A: Present value of annuity = Annuity amount * PVA of $1

Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In this we need to calculate monthly payment required for one million future value.

Q: Leberland Corporation deposits $100,000 every year in a savings account (beginning at the end of the…

A: The objective of this question is to calculate the future value of an ordinary annuity. An ordinary…

Q: Wells Fargo offers a new savings product: You make the following payments over the next 5 years and…

A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…

Q: An investor plans to invest $500 a year and expects to get a 10.5% return. If the investor makes…

A: Formula to be used,   PV = P[1-(1+r)^-n]/r where, PV=Present value P=Principal amount r=Rate of…

Q: You invested 260 in a mutual fund today that pays 6.3 percent interest annually. How long will it…

A: Present Value = pv = 260Interest Rate = r = 6.3%Future Value = fv = 260 * 2 = 520

Q: Suppose you invest in an annuity that pays 5% annual interest, compounded quarterly. If you…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…