You deposit $4,500 per year at the end of each of the next 25 years into an account that pays  10 percent compounded annually. How much could you withdraw at the end of each of the 20  years following your last deposit? (The 25th and last deposit is made at the beginning of the 20- year period. The first withdrawal is made at the end of the first year in the 20-year period.)

Q: Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank…

A: Future value of Annuity: It is  the total value of annuity payments  accumulated at a specific  time…

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: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: Annual receipt (C) = P 35,000 Number of annual receipts (n) = 18 Interest rate (r) = 3%

Q: A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used…

A: Annuity refers to the series of payment in equal interval of time for certain time period.  For…

Q: You wish to have $200,000 at the end of twenty years. In the last five years, you withdraw $1,000…

A: Amount at end of 20 years = $200,000Withdrawal = $1000 @ rate = 3.8% compounded quarterlyMonthly…

Q: You have opened a financial instrument that requires the following for the next six years: An…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: You make five annual deposits of $1,800 into a savings account that pays interest at a rate of 3%…

A: Annual deposit=$1800Interest rate for 6 years=3%Last four years=4%Number of deposits=n=1800Find…

Q: Harry Morgan plans to make 30 quarterly deposits of P200 into a savings account. The first deposit…

A: Solved using Financial Calculator  N= 30 (7.5 * 4 = 30) I/Y = 8/4 = 2 PMT = 200 CPT FV = 8113.62

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: Suppose you deposit $2000 in an individual retirement account ( IRN) that pays interest at 6%…

A: Deposit amount on starting = $2000 Compounded monthly rate = 6% for first two years Compounded…

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

Q: 2) If Bob deposits $5000 at the end of each year for 14 years in an account paying 6% inter…

A: C=$5000i=0.06n=14

Q: Lidia deposits $700 at the END of each year for 8 years in a savings account. The account pays 12%…

A: In finance, the term annuity represents a stream of cash flows that contain an equivalent periodic…

Q: You deposit $200 each year in an account for 15 years and then $400 each year in the same account…

A: The concept of the time value of money states that the current worth of money is more than its 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: Determine the total amount that would be  accumulated to his account by the end of 8th year.

A: Under Compound Interest Method, interest is provided on the accumulated balance of the account i.e.…

Q: You will deposit $202 each of the next four years (the first deposit will occur one year from today,…

A: 92 COMPOUNDED ANNUALLY ROUNDED 2 DECIMAL 93 F G   94 INTEREST RATE 7.50%   95 NPER (n)  4…

Q: You place £1,000 on deposit at an annual interest rate of 10% and make regular contributions of £250…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: In three years, a person will begin making quarterly deposits of $45 in an account that pays 10%;…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: An annuity is a financial term that depicts a stream of cash flows of an equivalent periodic amount…

Q: An executive prepares for retirement by depositing $2500 into an annuity each year for 10 years. The…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: A person is considering entering into an agreement with an investment company to deposit $1000 into…

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

Q: A deposit is made every half-year into a savings account paying 3% interest compounded semiannually.…

A: Annual interest rate (r): 3%, or 0.03 as a decimal.Compounding periods per year (n): 2 (semiannual…

Q: A deposit of $5,000 per year is done starting at year 1 for 5 years. The sum of $60,000 is required…

A: Future value of the annuity is the amount that is being deposited each period and also amount of…

Q: Suppose you invest $3000 in a four-year certificate of deposit (CD) that pays 1.5% interest…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Deposits of $100 are made monthly into a savings account that pays 3% compounded monthly. If the…

A: Required amount in the account 10 years after the last deposit=$128,484.76 Here, Future value…

Q: You would like to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Future Value= $59,000; No. of periods= 5*4= 20 years, Interest rate per period = 4.24/4=…

Q: You wish to have $400,000 at the end of twenty-five years. In the last ten years, you contribute…

A: In this question one has to find the present value of the investment. The future value is given as…

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: Let the required annuity be = n quarters To make the account 0 at the end of the annuity period, the…

Q: You begin making contributions to a new retirement account on your thirtieth birthday. You make a…

A: Calculate the future value at the end 64 years as follows:

Q: initially invest $5, 000 into an account, and at the end of the first year, invest another $5, 000.…

A: Future value of money grow with time and interest rate and value goes down when money is withdrawn.

Q: Lidia deposits $800 at the END of each year for 8 years in a savings account. The account pays 12%…

A: Future value is the value of an asset in the future over the years. It can be calculated as…

Q: You decide to deposit $126 monthly in a 3.2% annual interest bearing account over the next 18 years.…

A: The future value of annuity is used to determine the value of a series of payments in future at a…