Suppose you plan to invest $20000 in an account paying 8% interest per annum. How much will you have in the account in 15years?

Q: You are planning to invest $6,000 in an account earning 10% per year for retirement. a. If you put…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

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: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…

A: Here,

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: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$15,000…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

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: Suppose you invest $1,000 in an account paying 10% interest per year. How much will you have in the…

A: In this question future value is to be find out. Future value is the value of an asset which grows…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest K700 a…

A: Time Period30Stock Return 10%Bond Return6%Amount In Stock      K 700.00Amount In Bond   K  300.00

Q: Suppose that you have $100 to invest for a period of 5 years at an interest rate of 10% per year.…

A: Given: Present value $100 Years 5 Annual rate  10%

Q: you want to be able to withdraw $30000 each year for 20 years. Your account earns 9% interest. a)…

A: In the provided scenario, PMT = $30,000 Period is of 20 years, and  Rate is 9%.

Q: Suppose you want to have $700,000 for retirement in 30 years. Your account earns 10% interest. a)…

A: Fresent value is an estimate of the future cash flows ​​that may be received at a future date,…

Q: Suppose your opportunity cost (interest rate/year) is 11% compounded annually.  How much must you…

A: Opportunity cost can be defined as the loss if one alternative is accepted in place of other…

Q: You expect to receive a one-time payment of $1,000 in 10 years and a second payment of $1,500 in 15…

A: Here, One-time payment = $1,000 in 10 years Second payment = $1,500 in 15 years Annual interest rate…

Q: You just opened a brokerage account, depositing $4,000. You expect the account to earn an interest…

A:

Q: Suppose you plan to deposit $100 into an account in one year and $300 into the account in three…

A: Computation:

Q: In planning for your retirement, you have decided that you would like to be able to withdraw $60,000…

A: When a payment is done repeatedly for a specific period of time it is referred to as Annuity.…

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: Suppose you invest $180 a month for 6 years into an account earning 10% compounded monthly. After 6…

A: When the money is deposited or collected at a regular interval of time with the given interest rate,…

Q: If you open a savings account that earns 6.5%simple interest per year, what is the minimum number of…

A: If savings are invested in a bank for the purpose of earning some return then the account opened in…

Q: Assume that you just deposited $1000 into a savings account that earns an interest rate of3% per…

A: The future value of an investment can be very useful for investors as it helps them to estimate how…

Q: Suppose you want to withdraw $20,000 at the end of year 3 and another $20,000 at the end of year 5.…

A: given, The amount to be withdrawn is $20,000 in year 3 and $20,000 in year 5 Rate is 5%

Q: If you open a savings account that earns 7.5% simple interest per year, what is the minimum number…

A: Simple interest rate is the interest rate that is fixed on a borrowed amount and is to be paid by…

Q: You want to be able to withdraw $25,000 each year for 20 years. Your account earns 10% interest.…

A: Part A-C:Calculation of Amount in the Account, Total Money in the Account and Total Interest:A) The…

Q: How how much will you have in the account after 10 years if the account earns an effective annual…

A: Future Value: It represents the future worth of the present stream of cash flows. It is computed by…

Q: Suppose you want to have $300,000 for retirement in 20 years. Your account earns 10% interest. a)…

A: The future value of an annuity is the amount of money that a series of periodic payments will grow…

Q: a) Suppose you have $50,000 to invest in a savings account that pays interest annually with a 5-year…

A: a) To calculate the annual interest rate required to reach a balance of $70,000 after 5 years with…

Q: Suppose you invest $160 a month for 6 years into an account earning 7% compounded monthly. After 6…

A: Here, Particulars Values Monthly deposit (PMT)  $ 160.00 No. of years invested 6.00 Number…

Q: Suppose that you invest $20 000 in an account paying 8% interest. You plan to withdraw $2000 at the…

A: Investment = $ 20,000 Annual interest rate = 8% Annual withdrawal = $ 2000 Period = 15 Years

Q: Suppose you want to have $700,000 for retirement in 20 years. Your account earns 10% interest. How…

A: Future value (FV) = $ 700,000 Period = 20 Years Number of monthly payments (n) = 20*12 = 240…

Q: in planning for your retirement, you would like to withdraw $80,000 per year for 17 years, the first…

A: The PVAF value of (10%,17) and ( 15%,17) is take from the present value of annuity of $ 1The PVIF…