Today is your 23rd birthday.  Your aunt just gave you $1,000.  You have used the money to open up a brokerage account.  Your plan is to contribute an additional $2,000 to the account each year on your birthday, up through and including your 65th birthday, starting next year.  The account has an annual expected return of 12 percent.  How much do you expect to have in the account right after you make the final $2,000 contribution on your 65th birthday?

Q: When you were born, your family started to deposit 1,000 USD each month in the bank. The bank offers…

A: Amount deposited each month in the bank = 1,000 USD  Annual deposited amount (PV) = 1,000 USD × 12…

Q: Derek will deposit $255.00 per year into an account starting today and ending in year 21.00. The…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

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A: Future value refers to the estimated value of an asset or investment at a specific point in the…

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A: Steps to calculate annual deposits is shown: Calculate the FV of an amount given by the father at…

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A: Future Value = fv = $1,400,000Time = t = 48Interest Rate = r = 12%

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A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

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A:

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A: Present value and future value is computed by discounting or compounding an amount. Future value is…

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A: Your annual investment, PMT = $ 1,500    Starting age = 25Number of Years, n = 15Annual Interest…

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A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

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A: First, we need to determine the PV of the college expenses at age 18 using the PV of annuity due…

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A: An annuity refers to a cash flow series that occurs periodically and that are usually fixed and…

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A: Given information: Annual deposit (PMT) = $90,000 Number of years in accumulation phase (n) = 8…

Q: Your aunt promises to gift you $1,500 now, $1,700 one year from now, $1,900 two years from now, and…

A: The future value is reflective of the value of cash flows in the future after compounding them using…

Q: After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

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A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: If you make annual payments into a retirement plan during your working life, how much will you need…

A: Find the present value of the annuity for retirement funds at t=25. (PV Function) The above amount…

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A: Future value of an annuity: It represents the future worth of the annual cash flows made…

Q: Say that you plan to retire in 9 years. Starting today, you plan to make 9 annual contributions of…

A: Number of Payment = n = 9Payment = p = $6600Interest Rate = r = 6.7%special contribution = c =…

Q: You are saving for retirement. To live comfortably, you decide that you will need $2.5 million by…

A: Yearly deposit refers to an amount that is kept aside for the purpose of saving in any of the…

Q: At the end of this year, you intent to contribute $5000 to your retirement account. You are…

A: This is a case of growing annuity. An annuity refers to a stream of cash flows occurring repeatedly…

Q: You are saving money for a down payment on a new house. You intend to place $5,000 at the end of…

A: Future value:The future value is a financial concept that calculates or shows the value of money in…

Q: You plan to open a retirement account. Your employer will match 50% of your deposits up to a limit…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Your first child was just born and you want to set up an annuity due savings plan to finance her…

A: Future Value is the amount which is received by the investor at the end of some specified period of…

Q: ylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your…

A: The present value (PV) of a future sum of money or stream of cash flows is the current value,…

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A:

Q: As part of your financial planning and to supplement your retirement, you decided to save $3000 at…

A: Future value is the expected value of the current amount at a future date at a given specific rate…

Q: tion, you plan to work for Dynamo Corporation for 12 years and then start your own business. You…

A: In compounding of interest there is interest on interest including interest on deposit amount due to…

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A: Money has time value because money can be invested elsewhere and money can be earned so money today…

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A: Future worth is the worth of current amount at some future specified date considering compounding…

Q: You annually invest $2,000 in an individual retirement account (IRA) starting at the age of 30 and…

A: Since, in this question fixed amount is invested each year. So, it is the question of annuity.…