The Pirerras are planning to go to Europe 2 years from now and have agreed set aside $180/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 2% / year compounded monthly, how much money will be in their travel fund at the end of the second year? (Round your answer to the nearest cent.) $ X Submit Answer

The Pirerras are planning to go to Europe 2 years from now and have agreed set aside $180/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 2% / year compounded monthly, how much money will be in their travel fund at the end of the second year? (Round your answer to the nearest cent.) $ X Submit Answer

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 23P

See similar textbooks

Similar questions

Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
The Pirerras are planning to go to Europe 2 years from now and have agreed to set aside $180/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 2%/year compounded monthly, how much money will be in their travel fund at the end of the second year? (Round your answer to the nearest cent.) $ Submit Answer s] $ DETAILS Submit Answer TANFIN12 5.3.012. Find the periodic payment R required to accumulate a sum of S dollars over t years with interest earned at the rate of r%/year compounded m times a year. (Round your answer to the nearest cent.) S = 160,000, r = 3.5, t = 30, m = 4 MY NOTES
The Pirerras are planning to go to Europe 2 years from now and have agreed to set aside $170/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 3%/year compounded monthly, how much money will be in their travel fund at the end of the second year? (Round your answer to the nearest cent.)
Savings Accounts-The Pirerras are planning to go to Europe 3 years from now and have agreed to set aside $150 per month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 3% per year compounded monthly, how much money will be in their travel fund at the end of the third year?
) How long would it take for you to save an adequate amount for travelling around the world, if you deposit $40,000 per year into an account beginning one year from today that pays 20% per year if you wish to have a total of $1,000,000 at the beginning of your travel?(
Paul and Donna Kelsch are planning a Mediterranean cruise in 3 years and will need $6,500 for the trip. They decide to set up a "sinking fund" savings account for the vacation. They intend to make regular payments at the end of each 3 month period into the account that pays 6% interest compounded quarterly. What periodic sinking fund payment (in $) will allow them to achieve their vacation goal? (Round your answer to the nearest cent.)
Upon retirement, your goal is to spend 6 years traveling around the world. To travel in the style to which you are accustomed will require $225,000 per year at the beginning of each year. If you plan to retire in 24 years, what are the equal, annual, end-of-year payments necessary to achieve this goal? The funds in the retirement account will compound at 9 percent annually. Use Table III and Table IV or a financial calculator to answer the question. Round your answer to the nearest dollar.
You want to retire 32 years from today and buy a beach house in Costa Rica. Today, those houses sell for $267,000 and are expected to increase in price by 2.3% per year. To pay for the house, you will deposit a fixed amount of money at the end of each of the next 32 years into an account that pays 8.1% interest annually. What is the amount of your annual deposit? Answer Format: Positive number rounded to 2 decimal places.
A couple wants to set up a college savings account for their grandchild. If the account earns 4.4% interest compounded quarterly, how much should they invest today so that the account will be worth $50,000 in 18 years? Round your final answer to two decimal places.
Paul and Donna Kelsch are planning a Mediterranean cruise in 6 years and will need $6,500 for the trip. They decide to set up a "sinking fund" savings account for the vacation. They intend to make regular payments at the end of each 3 month period into the account that pays 6% interest compounded quarterly. What periodic sinking fund payment (in $) will allow them to achieve their vacation goal?
Your uncle has said that if you agree to finish college he will give you equal payments of $3,500 at the end of each year for the next six years. If the annual interest rate stays constant at 4%, what is the value of these payments in today’s dollars? Round your answer to the nearest whole dollar. $15,595 $22,934 $18,347 $19,081You found out that now you are going to receive payments of $9,500 for the next 13 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 12%. What is the present value of these payments? Round your answer to the nearest whole dollar. $68,347 $92,268 $61,024 $54,678
You want to be able to withdraw $35,000 from your account each year for 20 years after you retire. If you expect to retire in 30 years and your account earns 7.9% interest while saving for retirement and 7.7% interest while retired:Round your answers to the nearest cent as needed.a) How much will you need to have when you retire?$b) How much will you need to deposit each month until retirement to achieve your retirement goals?$c) How much did you deposit into you retirement account?$d) How much did you receive in payments during retirement?$e) How much of the money you received was interest?