Thomas is planning to withdraw $8000 from a savings account at the end of each quarter for three years. If the payments are deferred for seven years and interest is 5.36% compounded semi-annually, what amount has to be invested now into the savings account?
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Thomas is planning to withdraw $8000 from a savings account at the end of each quarter for three years. If the payments are deferred for seven years and interest is 5.36% compounded semi-annually, what amount has to be invested now into the savings account?
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6. Then after leaving the money in the account for several years, you plan to withdraw everything 15 years from today. How much is available to withdraw at the end of year 15 if the account pays a nominal annual rate of 8% compounded monthly?Josh is planning to withdraw $9000 from a savings account at the end of each quarter for 3 years. If the payments are deferred for 6 years and interest is 5.75% compounded semi-annually, what amount must be invested now into the savings account? Rose has saved $90 000. If she decides to withdraw $4000 at the beginning of each month and interest is 6.25% compounded annually, for how long can she make withdrawals?
- To supplement your retirement, you estimate that you need to accumulate $290,000 exactly 41 years from today. You plan to make equal, end-of-year deposits into an account paying 8% annual interest. a. How large must the annual deposits be to create the $290,000 fund by the end of 41 years? b. If you can afford to deposit only $800 per year into the account, how much will you have accumulated in 41 years?To supplement your planned retirement in exactly 42 years, you estimate that you need to accumulate $220,000 by the end of 42 years from today. You plan to make equal annual end-of-year deposits into an account paying 8 percent annual interest.a. How large must the annual deposits be to create the $220,000 fund by the end of 42 years?b. If you can afford to deposit only $600 per year into the account, how much will you have accumulated by the end of the forty-second year?An individual needs $12,000 immediately as a down payment on a new home. Suppose that he can borrow this money from his insurance company. He must repay the loan in equal payments every six months over the next eight years. The nominal interest rate being charged is 7% compounded continuously. What is the amount of each payment?
- To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42 years. You plan to make equal annual end of year deposits into an account paying 8% annual interest. a. How large must the annual deposit be to create the R 220,000 fund in 42 years? b. If you can afford to deposit only R600 per year into the account, how much will you have accumulated by the end of the forty-second year?Suppose you would like to retire in 15 years. To save for retirement, you deposit an amount A into the bank at the beginning of the next 180 months. After that period, you would like to withdraw $1,000 at the beginning of the following 300 months. Assume a nominal yearly rate of 7.5% compounded monthly. What amount does A have to be?.Alvin has $16000 in his saving account. For how long can he withdraw $1600 be from the account at the end of every quarter starting one month from now if interest is 6% compounded semi- annually?
- Harry plans to deposit $3,000 at the beginning of each year into a savings account earning 2.75% compounded annually. How much will be in the account after 25 years? Your Answer:Suppose you deposit $2,500 at the end of year 1, nothing at the end of year 2, $750 at the end of year 3, and $1,300 at the end of year 4. Assuming that these amounts will be compounded at an annual rate of 15 percent, how much will you have on deposit at the end of five years?You want to be able to withdraw $8500 from an account at the end of each 6-month period (that is, twice a year) for the next 10 years. How much money should you invest now into an account earning 2.9% interest per year, compounded every 6 months, in order to fund the desired withdrawals? Assume the account is empty after the last withdrawal is made. Give the answer correctly to 2 decimal places.
