K.Tanja wants to establish an account that will supplement her retirement income beginning 30 years from now. Find thelump sum she must deposit today so that $400,000 will be available at time of retirement, if the interest rate is 10%,compounded quarterly.How much must Tanja invest?P=(Round to the nearest cent as needed.)

The Present Value (PV) is an evaluation of the current value of a stream of future cash flows. Due…

Answered: Tanja wants to establish an account…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

You want to retire at age 65. You decide to make a deposit to yourself at the end of each year into an account paying 3%, compounded annually. Assuming you are now 25 and can spare $1,400 per year, how much will you have when you retire at age 65? (Round your answer to the nearest cent.)_____$
The Wright family wants to save money to travel the world. They purchase an annuity with a yearly payment of s480 that earns 4% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 14 years. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
Without using Excel and using the formula, Cheryl is setting up a payout annuity and wishes to receive $1200 per month for 20 years. A. How much does she have to deposit if her money earns 8% interest compounded monthly? B. Find the total amount Cheryl will receive from her payout annuity.
Amy purchases an annuity that will give her payments of R at the end of each quarter for seven years. She will receive the first of these payments in 1.5 years. If Amy paid $50,000 for this annuity and will earn a nominal rate of interest of 6% compounded quarterly,(a) write the equation of value (using the appropriate actuarial notation) for this annuity at the time of purchase. Be sure to indicate the effective rate per payment period being used.(b) find the value of R.
Jane wants to retire with $2,000,000 in her retirement account exactly 35 years from today. If she thinks she can earn an interest rate of 10. percent compounded monthly, how much must she deposit each month to fund her retirement? $432.83 O $493,32 O $526.78 $582.32
Jessica wants to accumulate $13,000 by the end of 6 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the month over the 6-year period. If the bank pays interest at the rate of 5% per year compounded monthly, how much does she have to deposit each month into her account? (Round your answer to the nearest cent.)
To help out with her retirement savings, Linda invests in an ordinary annuity that earns 6.6% interest, compounded annually. Payments will be made at the end of each year. Continue How much money does she need to pay into the annuity each year for the annuity to have a total value of $97,000 after 17 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. 50°F Mostly cloudy Es O 2 2 W 0 3 E 4 X R O S F6 % 5 € T Y F8 & 7 a 7 U 27 D * 00 Submit Assignmen 2022 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center | Accessibility F10 D X I 9 2 F11 PDF F12 NumLk Prt Sc ^ Pause Br +
Annie would like a retirement income of $4,000 per month (beginning of month payments) for 23 years once she retires. How much must she have in her retirement account on the day she retires if the account can earn 4% compounded semi-annually? Your Answer: Answer
what effective annual rate of return would rayne need to earn if she deposits 1,000 per month into an account beginning one month from today in order to have a total of 1000000 in 30 years?
To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 4.8% interest, compounded monthly. Payments will be made at the end of each month. How much money does she need to pay into the annuity each month for the annuity to have a total value of $97,000 after 18 years?
A young professional wishes to have $820000 in her retirement account. Its current value is $36000. She invests $600 monthly in the account which earns a 8.1% annual interest rate, with interest compounded monthly. Find the number of payments needed to reach her goal.
Kala wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 4.8% interest, compounded annually. Payments will be made at the end of each year. 圖 00 How much money will she need to pay into the annuity each year for the annuity to have a total value of ss000 after 3 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the ilist of financial formulas.

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