You are planning for your future by depositing lump sum into a time deposit account, what amount must be deposited at the present time so that you can withdraw $600 monthly for 5 years, with the first withdrawal scheduled for 5 years from today? The bank offers you 0.5% interest monthly. (Hint: Monthly withdrawals start at the end of the month 60).

Q: You want to be able to withdraw $30,000 from your account each year for 15 years after you retire.…

A: The term "present value" describes the current value, discounted at a particular interest rate, of…

Q: ou want to be able to withdraw $50,000 from your account each year for 20 years after you retire.…

A: There is need of planning for the retirement and that should be done on time to have good retirement…

Q: You decide to open an individual retirement account (IRA) at your local bank that pays 8%/year…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You deposit $320 each month into an account earning 2% interest compounded monthly. Use the TVM…

A: Future value is the value of current asset at a particular date in the future when it has earned…

Q: If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a…

A: Ordinary Annuity means a series of equal payments that are made over a fixed length of time at the…

Q: January 1, 2022, you open a checking account with the same bank that you have your savings account.…

A: Applicable interest rate is 0.02% Bi monthly deposits are of $25 Time period is 1 year To Find:…

Q: You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent…

A: Compound = monthly = 12Monthly Deposit = d = $370Interest Rate = r = 9 / 12 = 0.75%Time = t = 35 *…

Q: When you buy a certificate of deposit (CD), you are investing your money in an account that earns…

A: The formula used to compute final worth of CD as follows: A=P1+rnnt

Q: You want to be able to withdraw $8500 from an account at the end of each 6-month period (that is,…

A: Given that;Periodic withdrawal amount is $8500Interest rate is 2.9% per year

Q: ou make a one time 2000 deposit into an account which pays an annual interest rate of 1.7 compounded…

A: the final balance in the account will be the future value of the amount 2000 along with the interest…

Q: Suppose that your parents decide tổ make deposits into a savings account, With the first deposit…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: Option 1: Deposit $ 500 now Future Value = Present Value*(1+ Interest rate)n Solved using Financial…

Q: Your goal is to have $12,500 in your bank account by the end of eight years. If the interest rate…

A: Future Value = fv = $12,500Time = t = 8 YearsInterest Rate = r = 8%Annual Deposit type = at the end

Q: Your bank account pays an interest rate of 6 percent, but this interest is compounded daily (use…

A: Interest rate on account = 6% (compounded daily) Amount A = P(1 + r/n)nt Where A = amount P =…

Q: Your goal is to have $15,000 in your bank account by the end of eight years. If the interest rate…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…

A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…

Q: when

A: !!!The amount of the deposit will grow on a daily basis, At the end of five years, the amount must…

Q: Today you are opening a savings account and depositing an initial $5,000 into it. You plan to…

A: Maturity Value is that amount which will be received at the end of certain period of time. It…

Q: A friend asks to borrow $45 from you and in return will pay you $48 in one year. If your bank is…

A: If you deposit amount in a bank, you will reccive interest on such depoisit. Hence your money after…

Q: You are planning to make monthly deposits of $475 into a retirement account that pays 10 percent…

A: Given:

Q: The stated interest rate on your account is 8%, interest compounded monthly. If you deposit $50 each…

A: Future Value Annuity is the technique of determining the furure value of a series of regular…

Q: Suppose you want to have $400,000 for retirement in 25 years. Your account earns 5% interest. Feel…

A: Retirement amount = $400,000Number of years = 25Interest rate = 5%To find: a) Monthly deposit, b)…

Q: Your credit card has a balance of $4100 and an annual interest rate of 15%. You decide to pay off…

A: Balance amount=$4100 Interest rate=15% Time period=3 years 3 years monthly payment=$142.13 3 years…

Q: You plan to deposit $1,500 per year for 4 years into a money market account with an annual return of…

A: Future value of annuity=C×1+in-1iC=Cash flow per periodi=Interest raten=Number of payments

Q: account with an interest rate of 7.5% per year compounded monthly. You want to withdraw all your…

A: interest rate =7.5% monthly interest =7.5/12=0.625 Future value =Present value (1+i)n

Q: You are investing in a retirement account and plan to deposit $5,000 per year into the account for…

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

Q: You are planning to make monthly deposits of $300 into a retirement account that pays 8 percent…

A: Future value is the amount of money worth at a future date. This can be calculated based on the time…

Q: Assume you deposit $50,000 today in a bank account offering an interest rate of 7.50% per year,…

A: Maturity Amount = Principal x (1+Interest Rate)Maturity Period Interest Earned = Principal Amount -…

Q: To prepare for retirement, you are going to deposit money into a pension plan account every month…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You are planning to save to purchase a car in 23 years for $28,000. You have opened a bank account…

A: Annuity is a series of equal payments made for some particular period of time . When payment is made…

Q: You want to be able to withdraw $50,000 from your account each year for 25 years after you retire.…

A: Here, Annual amount to withdraw = $50,000 Time in years after retirement = 25 years Time to…

Q: Assuming you will be able to deposit $6000 at the end of each of the next four years in a bank…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: You deposit $78000 into an account that pays 5% compounded quarterly. You leave the money in the…

A: Computation:

Q: if your bank pays 3.73% interest, how much will you accumulate in the account at the end of 30 years

A: We can determine the accumulated amount using the FV of annuity due formula as below:In the formula…

Q: You deposit $1,000 into an account every six months to help with your down payment savings for a…

A: Compound Interest = P(1 + r)nP = PrincipleR = Rate of Interest N = Period

Q: At an interest rate of 8% per year, the amount you must deposit in your retirement account for years…

A: The principle of present value indicates that a sum of money now is worth more than the same sum of…

Q: You want to have $60,000 in your savings account 12 years from now, and you're prepared to make…

A: When an equal amount is deposited each period at end of the period, it is called ordinary annuity.We…

Q: You plan to deposit $5,500 at the end of each of the next 15 years into an account paying 11.3…

A: a. Periodic deposit, P = $5,500Interest rate, r = 11.3%Number of deposits, n = 15 The future value…