Suppose you make an annual contribution of P8,698 each year to a college fund for a niece. He is 6 years now, and you will start next year and make the last deposit when he is 18. The fund is a money market account earning 5.29% per year. What will it be worth immediately after the last deposit?

Q: Assume that Social Security promises you $32,000 per year starting when you retire 45 years from…

A: Information Provided: Annual payment = $32,000 Discount rate = 4% No. of payments till retirement =…

Q: alculating Annuity Payments You want to be a millionaire when you retire in 40 years. How much do…

A: Due to compounding of interest over the period of time large amount of interest is being accumulated…

Q: Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the…

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

Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…

A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate

Q: If she starts now, how much does Sally need to save each month for the next 9 years to accumulate…

A:

Q: How much money would you need to have at retirement so that you can withdraw $50,000 a year for 20…

A: Present value of annuity concept is required to use in this case. Present value of annuity is the…

Q: Your investment advisor wants you to purchase an annuity that will pay you $81,491 after 10 years.…

A: The present value of an annuity refers to the value of the future payments on the current date…

Q: You want to have $2 million in real dollars in an account when you retire in 30 years. The nominal…

A: Future value = fv = $2 million Time = t = 30 years Nominal rate = 11% Inflation rate = 5.5%

Q: What will your account be worth in 35 years if you invest $5,000 each year, beginning one year from…

A: Time = t = 35 YearsPayment = p = $5000Interest Rate = r = 15%

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: A new investment opportunity for you is an annuity that pays $800 at the beginning of each year for…

A: Beginning of period Annuity Annuity Amount = 800 Time Period (N) = 3 years Rate = 5.5%

Q: Sally Mander wants to set up a perpetual annuity for herself that will pay $60,000 annually that…

A: A perpetual annuity is a financial instrument which gives regular fixed payments to the holder for…

Q: 8) Special Retirement PlanYou set up a retirement plan where you will invest $20,000 per year in an…

A: Annuity is the payment series which are made at equal time intervals.

Q: Homework/ An electrical engineer wants to deposit an amount P now such that she can withdraw an…

A: Investment is way to spend your money to get the required return out of it in a certain period of…

Q: Future Value of Annuity. You are attending college and have a part-time job. Once you finish…

A: We have to find out future value FACTOR and annual DEPOSIT and find out future value.

Q: A new investment opportunity for you is an annuity that pays $550 at the END of each year for 3…

A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: Sally Mander wants to set up a perpetual annuity for herself that will pay $85,000 annually that…

A: Perpetual Annuity : When an Investor invests an amount which will keep compounding itself at a…

Q: 5. Suppose you want to invest for the college expenses of your children, which you estimate to be…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Your friend offers to pay you an annuity of $6,800 at the end of each year for 3 years in return for…

A: Present value of Annuity = Annuity ×1-(1+r)-nrwhere,r=interest raten=number of periods

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

A: An annuity is a type of security that pays periodic payments over a specified period of time. In…

Q: 5. In eighteen years, you require an annuity stream of income that will pay out $100,000 per year…

A: An annuity refers to a fixed stream of payments. In this case the annuity amount is $100,000 per…

Q: From your prior job, you built up a small retirement account. That account will start paying you…

A: Because of the fact that any sum today can be invested and grown overtime, the concept of money's…

Q: You want to begin saving for your daughter’s college education and you estimate that she will need…

A: Time value of money is one of useful concept being used in finance. It says that amount invested…

Q: How many years would it take save an adequate amount for retirement if he deposits $2,100 per month…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: money right now. Find FV Annuity: If you deposit your annual payments into an account earning 2% per…

A: Payments = $10,000 Interest rate = 2% Time period = 10 years

Q: An endowment fund is set up today. It provides payments of $1500 a year for 6- years (first payment…

A: The question is based on the concept of present value for annuity and perpetuity payment .

Q: Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

A: Present Value of Annuity=Annuity×1-11+ratetimerate

Q: A young couple wants to have a college fund that will pay $20,000 at the end of each half-year for 8…

A: Here, The interest Rate is 6% Required Amount is $20,000 at the end of each half-year for 8 years…

Q: Suppose someone needs dollars 8969 in his account 5 years from now and the required rate of return…

A: Amount - 8969 Time - 5 years Rate of return - 0.1 per year compounded continuously

Q: you have a chance to buy an annuity that pays $1,000 at the end of each year for 5 years. You could…

A: The most we should pay for the annuity is nothing but the present value of annuity. Therefore, In…

Q: You purchase an annuity that will pay you $100 every three months for five years. The first $100…

A: FORMULA FOR PRESENT VALUE OF ANNUITY (FVA): PVA=A×1-1+rmm×nrm×1+rm where, A=annuity r=rate…

Q: Linda expects to receive P35,569.22 , 9 years from now. How much should she invests for three…

A: Annuity is the series of payment made by an investor over the period of time to accumulate future…

Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…

A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%

Q: Value of a retirement annuity. Personal Finance Problem An insurance agent is trying to sell you an…

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

Q: 5.12 Present value: Tracy Chapman is saving to buy a house in five years. She plans to put 20…

A: Present value is calculated by discounting the future cash flow.    Present value = Future value /…

Q: You are thinking about retirement decide to put aside Rs 50,000 each year in a saving plan that eams…

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

Q: You have a chance to buy an annuity that pays RM1,000 at the beginning of each year for 5 years. You…

A: The payment required to be made for the investment can be calculated with the help of present value…

Q: You are saving up for a down payment on a house. You will deposit P600 a month for the next 24…

A: Future value means the value at some future point of time. The future value can be calculated of an…

Income Statement

Income Statement also commonly called a profit and loss statement, one of the key financial statements (considered together with balance sheet and cash flow statement) which shows the revenues and expenses, as well as the gains and losses of a company for a given period. In other words, it presents the financial performance/profitability of a business over a specified accounting period.