You have accumulated $1,793,836 for your retirement. How much money can you withdraw for the next 14 years in equal annual end of year cash flows if you invest the money at a rate of 9.90 percent per year, compounded annually? Round the answer to two decimal places
Q: What amount must be set aside now to generate payments of $60,000 at the beginning of each year for…
A: The series of payments discussed here is a form of an annuity due wherein an equal payment is made…
Q: A person plans to make equal monthly deposits into this account for 20 years at the rate of 6%…
A: Present Value of annuity refers to the value of regular cash flows or payments at equal intervals at…
Q: You have just borrowed $240,000 and you agree to pay it back over the next 20 years in 20 equal…
A: Details given are : Present value of borrowing = $240000 Time period = 20 years Interest rate = 11%…
Q: What is the accumulated amount of five-year annuity paying P6,000 at the end of each year, with…
A: The worth of a present asset in the future based on a projected growth rate is referred to as future…
Q: What amount must be set aside now to generate payments of $20,000 at the beginning of each year for…
A: Working note:
Q: If $82,000 is invested in an annuity that earns 5.8%, compounded quarterly, what payments will it…
A: Present value (PV) of the investment is $82,000, which would earn an interest rate (r) of 5.8%…
Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: What amount must be set aside now to generate payments of $40,000 at the beginning of each year for…
A: The formula to calculate present worth is given below: Here, i is interest rate. n is number of…
Q: The amount a person would need to deposit today to be able to withdraw $6,000 each year for ten…
A: Working note:
Q: Assume that you deposited RM5,000 at the end of each year for 3 consecutive years in an account that…
A: The future value of annuity can be calculated with the annuity equation.
Q: If $84,000 is invested in an annuity that earns 5.2%, compounded quarterly, what payments will it…
A: Investment (PV) = $84000 Interest rate = 5.2% Quarterly interest rate (r) = 5.2%/4 = 1.30% Period =…
Q: Whatis the future sum of 1,900, given that it will be held in the bank for 25 years and earn 17…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: You are planning to make annual deposits of $3,600 into a retirement account that pays 8 percent…
A: The company will invest in another company to earn profits from the investments. The company will…
Q: What is the present value of a $120,000 cash flow to be received at the beginning of each of the…
A: Amount of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…
Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…
A: The present value means the present value of the payment of the future. It generally tells us what…
Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: What is the final amount of $2696 payable every three months for 5 years and 9 months, if money is…
A: Here, Quarterly Payment is P2696 Time Period is 5 years and 9 months Time Period in Quarters (n)…
Q: You deposit $2000 each year into an account earning 3% interest compounded annually. How much will…
A: A deposit annually is rewarded by an interest annually that make a huge amount at the end of…
Q: 1. Mrs. Renata converted the payment of her P50,000 debt to five (5) equal payments at the end of…
A: Loan is an agreement between two persons as lender (who gives money) and borrower (who takes money)…
Q: If $86,000 is invested in an annuity that earns 5.6%, compounded quarterly, what payments will it…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: What is the present value of a $400,000 cash flow to be received at the end of each of the next 10…
A: given, A=$400,000 r=9% n = 10
Q: What present amount of money must be deposited at 11% interest compounded annually to grow to…
A: Formula to calculate compound interest is: A = P(1+r/n)^nt Where A is the future value, P is the…
Q: You deposit $825 today in a savings account that pays 3.5% interest, compounded annually. How much…
A: Future value is the value of current value at a specified interest rate for given period. The…
Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…
A: The given problem can be solved using FV function in excel. FV function computes amount balance in…
Q: Assume that you deposited RM5,000 at the end of each year for 3 consecutive years in an account that…
A: Annual deposit = RM 5,000 Number of annual deposit = 3 Interest rate = 10% Semi annual interest rate…
Q: How much must be invested at the beginning of each year at 11%, compounded annually, to pay off a…
A: The problem relates to ANNUITY DUE. Annuity due is an annuity whose payment is due immediately at…
Q: A $200,000 inheritance is put in an account that earns 6% interest, compounded quarterly. If…
A: The present value of annuity would be give value of money today and how much can be withdrawn…
Q: How much money was deposited 35 years ago at 10% per year interest if it is sufficient to provide a…
A: Computation:
Q: If you contribute $1000.00 into an RRSP every six months for fifteen years and interest on the…
A: GIVEN, pmt =$1000 NPER = 15 X 2 =30 RATE = 8%2=4% PV=0
Q: Find the lump sum deposited today that will yield the same total amount as payments of $15,000 at…
A: Answer - Formula for Lump Sum deposited Today - P = R ( 1 - (1+i)-n/ i)
Q: You wish to have an annual cash inflow of $48,000 at the end of each of 6 years. How much must you…
A: Cashflow(PMT) $48,000 Time (n) = 6 years Rate (r) = 4%
Q: how much is this account worth in today's dollars?
A: Present value: It is the present worth of the annuity cashflows discounted over a period of time.…
Q: If money is worth 8% compounded quarterly, find the present value of 12 quarterly payments of P1,…
A: The rate of interest is 8% compounded quarterly. The payment made for 12 quarters. the each payment…
Q: You deposit $5000 each year into your retirement account, starting in one year. If these funds earn…
A: Answer: Following information are given: Annual deposit = $5000 Rate = 5% Time ( no of periods)…
Q: You are investing the following amounts at the end of each of the following three years. How much…
A: Year 1 Amount (C1) = $2,000 Year 2 Amount (C2) = $4,000 Year 3 Amount (C3) = $6,000 r = Return i.e.…
Q: Calculate the future sum of $1,000, given that it will be held in the bank for 5 years earning an…
A: Future value is the value of the current assets or some amount that is invested today and amount…
Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…
A: Future value is the accumulated value of an investment. It is the total of the initial deposit and…
Q: You wish to have $20,000 in an account 8 years from now. How much moneymust be deposited in the…
A: Computation:
Q: If $87,000 is invested in an annuity that earns 5.6%, compounded quarterly, what payments will it…
A: The interest rate is 5.6%, compounded quarterly. Interest rate per quarter is (5.6% ÷ 4) = 1.4%. The…
Q: $360,000 is invested in a perpetuity at an interest rate of 5.2% per annum. a. Find the monthly…
A: Future value of a present value is the value of that amount after taking into account the time value…
Q: A payment of $14,455 is due in 2 year, $18,000 is due in 4 years, and $8,450 is due in 7 years. What…
A: The question is based on the concept to calculate present value of expected future cash flows at…
Q: Architect Santos is planning to retire in 15 years. He wishes to deposit an equal amount (A) every 6…
A: Cash flow diagram: It is a representation of cash flows graphically. The minus sign indicates cash…
Q: Supposed that P2,000 is deposited each year , on a continues basis into a savings account that pays…
A: Annual deposit (P) = P2000 Interest rate = 6% Mathematics constant (e) =…
Q: 0 per quarter at the beginning of each quarter for my retirement at 7.3% compounding quarterly for…
A: The given problem can be solved using FV function in excel. FV function computes amount required in…
Q: You have $23,067.36 in a brokerage account, and you plan to deposit an additional $6,000 at the end…
A: The computations as follows: Hence, it will take 14 years to reach your goal.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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.You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityHow much must you deposit each year into your retirement account starting now and continuing through year 10.00 if you want to be able to withdraw $95000 per year forever, beginning 33.00 years from now? Assume the account earns interest at 9.00% per year. (Round the final answer to three decimal places.) The amount to be deposited is determined to be $
- What amount would you have if you deposited $2,500 a year for 25 years at 8 percent (compounded annually)? Round time value factor to 3 decimal places and final answer to 2 decimal places.Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return of 9 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Answer Question 4 Assume that you deposit $3,956 each year for the next 15 years into an account that pays 20 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.If you deposit $500 per year in an account for six years at 9 percent compounded annually, how much will you have in the account? Round your answer to the nearest dollar. $3,270 Give typing answer with explanation and conclusion
- Compute the present value of an annuity of $621 per year for 25 years, given a discount rate of 6 percent per annum. Assume that the first cash flow will occur one year from today (that is, at t = 1). Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Your Answer: AnswerThe present value of a perpetuity with annual cash flows of $1,000 each year is $15,000. What is the annual interest rate? Round your answer to two decimals.A person wishes to have $ 125,000 in an account for retirement 24 years from now. How much should be deposited at the end of each year in an account paying 7% compounded annually? Round your answer to two digits!
- What are the present worth and the accumulated amount of a 10 year annuity paying P10,000 at the end of each year, with interest at 15% compounded annually? (Please show the cash flow chart, an answer must be in 4 decimal places)What is the difference in present value between a perpetuity that pays $500 per year and an ordinary annuity that pays $500 per year for 23 years? Assume a discount rate of 7% and cash flows at the end of the period. Enter your answer as a number rounded to 2 decimal places.Assume you deposit $4,400 at the end of each year into an account paying 10.5 percent interest. a. How much money will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 48 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)