Q: Suppose an investment will pay $25,000 in 39 years from now. If you can earn 11.05% interest…
A: Calculate the present value as follows: Present value = Future value / (1+rate)^years.
Q: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…
A: To find the present value of the investment, we will first define where the payments are made. We…
Q: If you invest $20,000 at an annual rate of 1% compounded continuously, calculate the final amount…
A: The question is based on the concept of Financial Management.
Q: You are investing $1,000 at 4% for thirty years. Over those thirty years, how much "extra" will you…
A: Simple Interest total maturity amount = Principle * (1 + rate * Time) Compound interest maturity…
Q: terest, compounded monthly, for 2 years. Use the compound interest formula to calculate the compound…
A: In this we have to use future value formula to get future value.
Q: Suppose that you invest $9,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…
A: Compound interest is the total interest earned during the investment period. It considers…
Q: Using Table 1-1 onpage 19, calculate the following:(a) The future value of lump-sum investment of…
A: Calculation of Future Value and Present Value:Excel Spreadsheet:
Q: An investor paid $58,000 for an investment. He will get $5,780 for every two years (forever). What…
A: given, initial investment = $58,000 return for every two years = $5780
Q: You invest $15,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest…
A: Principal amount invested now will become certain amount after certain period of time at specific…
Q: A person invested JD 50,000, after 4 years he invested an additional JD10,000, if after 10 years the…
A: Annual interest rate on investment is the actual return earned annually from the investment. It can…
Q: ose an investment will pay $21,000 in 19 years from now. If you can earn 16.35% interest compounded…
A: The today value will be the present value of future value considering the discount rate and period…
Q: How much will your investment be worth in 17 years at each bank?
A: Time value of money (TVM) means that the amount received in the present will have more value than…
Q: If you have $4500 to invest now, and will need a total of $25,000 -- 10 years from now, determine…
A: Amount available now (PV) = $4500 Period = 10 Years Monthly period (n) = 10*12 = 120 Interest rate =…
Q: You want to invest a lump sum at 5% interest so as to have $100,000 in 20 years. If you find an…
A: The Present Value of a lump sum: The Present Value of a lump sum can be computed with the formula:
Q: When you start your career, you decide to set aside $600 every month to deposit into an investment…
A: GIVEN, R=11% A=$600 N=25 M = 12 (MONTHLY COMPOUNDING)
Q: You invest $17,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest…
A: Compound Interest- It is interest which is earned on the principal amount invested and interest…
Q: You have paid $1,000 for an investment that will pay back $1,200 in 3 years. What interest rate does…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
Q: Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional…
A: a) The computation of effective annual rate for 10 year: Hence, the effective annual rate is 8.16%.
Q: ed $250 000 in his RRSP. Determine the monthly deposits he should make into his RRSP if the rate…
A: There is need of proper planning for retirement and timely need of planning for retirement and if…
Q: How much you have to invest each year to reach the goal (assume end of year investments and an…
A: The retirement corpus is 750,000. To calculate the end of year payments, the PMT function in excel…
Q: A student invests $1000 in a bank account that pays an interest rate of 3.25% compounded monthly. a)…
A: given, A=$1000 r=3.25% m=12
Q: Fifteen years ago deposited 12500 in to an investment fund.five years ago you added an additional…
A: a) Computation:
Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…
A: Information Provided: Yearly annual income = $15,000 Interest rate = 4% NOTE: As per our…
Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…
A: Information Provided: Annual income = $15,000 Interest rate = 4% NOTE: As per our policy, we…
Q: You are offered an investment that will pay •$200 in year 1, •$400 the next year, •$600 the…
A: Time value tells that value received today is of more value than that of receiving the exact value…
Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…
A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%
Q: Find the accumulated value of an investment of $32,000 for 7 years at an interest rate of 4.2% if…
A: Value of investment = 32,000 Interest rate = 4.2% Time period = 7 years The value is compounded…
Q: Your client's 401K account has an initial balance of $6,900 and has monthly contributions of $500.…
A: Future value is the value of an asset in the future. Future value estimation is very important for a…
Q: A person invests $450 to be collected in 8 yr. Given that the interest rate on the investment is…
A: The future value of the cash flow is the current worth of a cash flow at a certain rate of interest…
Q: A person wants to make two individual investments, one today and one in six months at a rate of 18%…
A: monthly rate = 18%/12 = 1.5% X * 1.01512 + 5,000,000*1.0156 = 10,000,000 X = 3,791,163.26
Q: Susan Bertrees can invest $12,000 at 2% interest compounded twice a year or compounded quarterly. If…
A: The difference between the interest can be computed by calculating the difference in future value of…
Q: A person has Php200,000.00 which he plan to put in an investment for 3 years. He is choosing between…
A: The future value of the cash flow is the future worth of the cash flow at a certain rate of interest…
Q: Find the accumulated value of an investment of $25,000 for 5 years at an interest rate of 5% if the…
A: Compounded Semi annually: Compound Interest = Principal ( 1+ r)n r = Interest = 5/2 = 2.5% N =…
Q: investment
A: Formula to calculate compound interest is: A = P(1+r/n)^nt where A is the final amount, P is the…
Q: John Smith has found a short-term investment opportunity. He can invest $6,000 at 0.5% interest for…
A: Question pertains to calculation of interest amount in case of daily compounding. Calculations are…
Q: Suppose that you invest $5,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…
A:
Q: If an investor intends to double $35,000 by investing in a bank that pays 6% interest per year,…
A: Present value = $ 35000 Future value = 35000*2 = $ 70,000 Annual interest rate = 6%
Q: suppose you are offered the following three accounts to invest $10,000 for 20 years: 18% simple…
A: Since only two accounts are offered rather than three accounts. So, the best choice among the two…
Q: You invest $19,000 at 18% interest, compounded monthly, for 2 years. Use the compound interest…
A: Given, Investment = $19,000 Interest = 18% Compounding Frequency = Monthly for 2 years The…
Q: You have just received a windfall from an investment you made in a friend's business. He will be…
A:
Q: You invest $17,000 at 18% interest, compounded monthly, for 2 years. Use the compound interest…
A: Higher the frequency of compounding, higher would be the interest income
Q: Your brother has asked you to help him with choosing an investment. He has $7,700 to invest today…
A: Future value represents the value of the investment in the future date of the company.
Q: If money is worth 5% compounded quarterly , find the future worth of a sequence of 12 semi annual…
A: Since you have asked multiple questions, we will solve the first question for you as per policy.…
Q: Alexander invests $5,000 at an interest rate of 1.4% per quarter. How much is the investment worth…
A: Future value is the value of the current assets or some amount that is invested today and amount…
Q: Suppose I have the choice of investing $25000 in two different accounts: Acct 1: 4.5%…
A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…
You invest $17,000 at 6% interest, compounded monthly, for 2 years. Use the
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****(FYI: It is not $2,161.72)*****
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Solved in 3 steps
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
- You invest $17,000 at 18% interest, compounded monthly, for 2 years. Use the compound interest formula to calculate the compound amount (in $) for your investment. (Round your answer to the nearest cent.) 2$ Need Help? Master It Read It Watch ItFind the accumulated value of an investment of $20,000 for 5 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. Click the icon to view some finance formulas. *** a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent.) InYou invest $19,000 at 6% interest, compounded monthly, for 2 years. Use the compound interest formula to calculate the compound amount (in $) for your investment. (Round your answer to the nearest cent.)
- You decide to invest $7,500 into an account that pays 1.1% annual compound interest. Write an equation for the balance of the account (B) after t years.You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly. a) How much will you have in the account in 30 years? P/Y = C/Y = N = I/Y = % PV = $ PMT = $ FV = $ (round to the nearest cent) b) How much will be the total amount of money deposited into the account after 30 years? Total Deposited = $ (enter a positive value) c) How much total interest will you earn? Total Interest= $ (enter a positive value, and round to the nearest cent) ( Explain all point of question with proper step by step Answer. )Suppose an investment will pay $7,000 in 44 years from now. If you can earn 6.15% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices
- Find the accumulated value of an investment of $25,000 for 5 years at an interest rate of 5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. Click the icon to view some finance formulas. ..... a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A A: P = A =Pert Y = -1 nt 1+ Print DoneYou deposit $650 in an account paying 7.8% simple interest. Find the future value of the investment after 3 years. (Round your answer to two decimal places.)You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years.Find the value of sn\i. Group of answer choices 11.76470588 16.87675201 51.10869654 48.37701323