Suppose you invest $120 a month for 5 years into an account earning 8% compounded monthly. After 5 years, you leave the money, without making additional deposits, in the account for another 23 years. How much will you have in the end? $4

Q: Suppose that you want to save $14000 over the next 6 years and you know that your savings will earn…

A: Present Value: It represents the current value of the future expected cash flows discounted over a…

Q: account

A: Introduction: Investments are made by depositing a certain sum of money in the account. At the end…

Q: If you have $60,000 in a bank account that is paying an interest rate of 4 percent that is being…

A: To find out how many years it will take to double an investment with a constant interest rate, you…

Q: Suppose you invest $160 a month for 5 years into an account earning 9% compounded monthly. After 5…

A: Part (a) Given information, Monthly deposit payment (PMT) = $160Deposit period (t) = 5 yearsMonthly…

Q: If I deposit $1k a year into an account for 10 years @ 2%, what is the future value of that account?

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: You invest 10.000 dolar in a bank account to buy a house at annual interest rate 14 per year,…

A: Given: Investment = 10,000 Interest rate = 14% Years = 10

Q: You have $14,000 in the bank today.  How much would you need to save each year in order to…

A: Current amount (C) = $14000 Let the annual saving = A r = 10% n = 30 years Accumulated value = $3…

Q: Suppose you put $ 525 a month for retirement into an annuity earning 5.25% compounded monthly. If…

A: An investment decision may involve regular cashflows of equal amount during successive years in…

Q: You deposit $10,000 into a savings account today and leave the money in the account for the next 12…

A: Future value is the value of an annuity at a future date being compounded for a period of time at an…

Q: Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is…

A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )

Q: If you invest $600 today at a rate of 14%, how much will you have in the account after 15 years?…

A: Present Value = pv = $600Interest rate = r = 14%Time = t = 15 years

Q: Suppose you invest $200 a month for 6 years into an account earning 8% compounded monthly. After 6…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: If you deposit $4,600 today into an account earning an annual rate of return of 14 percent, what…

A: Given information, Present value (PV) = $4,600Annual rate of return (r) = 14% or 0.14Number of…

Q: Write the present value function, letting x represent the number of years.

A: Time value of money: The time value of money is the idea that the value of money received today will…

Q: Suppose you invest $120 a month for 8 years into an account earning 10 % compounded monthly. After 8…

A: Compound = monthly = 12monthly Payment = p = $120Interest Rate = r = 10 / 12%Number of Payment = n =…

Q: What is your annual rate of return if you deposit $2,700 today and withdraw $3,500 in a lump sum in…

A: Rate of return refers to the increase or decrease in the value of an investment over a certain…

Q: You can invest $5,000 today in an account that earns an annual interest rate of 8%. Using the…

A: In the given case, we have provided the current investment or initial investment, annual interest…

Q: How much money would you need to place in an account to have $1,000 10 years from today? Assume the…

A: The formula used as follows: Present value=Future value1+innt

Q: You invest $10,000 at the end of each 5 years. If i=4%, What is the value of the account at EOY 5?…

A: At the end of year 5, the value of the account where $10,000 is invested every 5 years at an…

Q: How much do you have to invest today in a savings account that returns 6.5% interest, compunded…

A: Amount after 10 years = $25,300 Amount Invested =Let P Years =10 Interest Rate(r) =6.5% compounded…

Q: Suppose you want deposit $200 each month into an account earning 3.5% APR compounded monthly. a)…

A: Annuity is a fixed periodic payment made over a period of time, leading to the accrual of a definite…

Q: If you deposit $500 at the end of each year for the next 5 years in a bank where it will earn 6%…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: You Save Bank has aunique account. If you deposit $9,000 today, the bank will pay you an annual…

A: FV = A*(1+r)nwhereFV = future valueA = amount investedr = interest raten =time period

Q: How much do you have to deposit at the end of each year if you need $ 2856 in 4 years, assuming k =…

A: The Amount to be deposited each year for 4 years at the end of each year shall be computed as above.

Q: You've saved $600,000 for your retirement in an account that has a 8% interest rate, and you plan to…

A: Today value=PV=$600000Annual withdrawal=$60000Interest rate=r=8%

Q: Suppose you make a one-time $ 8,000 investment into an account that yields a 12% annual return. If…

A: The FV of an investment refers to the total value of its cash flows at a future date assuming that…

Q: Assume you deposit $50,000 today in a bank account offering an interest rate of 7.50% per year,…

A: Maturity Amount = Principal x (1+Interest Rate)Maturity Period Interest Earned = Principal Amount -…

Q: you deposit $3000 today in an account earning 3.5% annual interst and keep it for 10 years. In 10…

A: Total amount present in the bank account after 30 years is $111,430.6Explanation:First we calculated…

Q: You deposit $5000 each year into an account earning 6.8% interest. How much will you have in the…

A: Given: Yearly deposit = $5000 Interest = 6.8% annually Time =15 years

Q: You put $1,000 into a savings account today that offers a 55% APR with semi-annual compounding…

A: GIVEN, PV = $1000 N = 2 M = 2 (SEMI ANNUAL) R=55%

Q: If you save $1298 per year for the next 17 years and earn 7.2% interest on your savings, how much…

A: The future value of annual savings is computed based on the time value of money concept. As per this…

Q: How much must you deposit into an account today so that you can have $20,000 in twelve years? Assume…

A: Here, Future value (FV) = $20,000 Time period = 12 years Interest rate = 6% compounded quarterly No.…

Q: Suppose you invest $160 a month for 6 years into an account earning 6% compounded monthly. After 6…

A: The future value (FV) formula is used in finance to calculate the future value of an investment.This…

Q: Suppose you invest $200 a month for 6 years into an account earning 9% compounded monthly. After 6…

A: Time Value of Money states that a dollar is worth more today than anytime in the future because they…

Q: If you invest $1,000 in an account that pays an annual interest rate of 6.4%, compounded monthly,…

A: Computation: