You have $15,000 that you want to invest.  You expect your investment to yield 7% annual growth (compounded monthly) over the long term.  In addition to your up-front investment, you want to invest another $250/month into that investment.  How much will your investment be worth in 20 years?     $130,232     $190,812     $204,753     $181,032

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Save 20% of Yearly Income Income in first year = 1,000,000 Savings in first year = 20% * 1,000,000 =…

Q: If you invest $5,000 now, and your investment pays 12% per annum, how much will you have in three…

A: Following information is given in the question: Investment today (Present value) = $5000 Annual…

Q: How long will it take for $4,000 to grow to $7,000 if the investment earns an interest rate of 16%…

A: Given information: Future value is $7,000 Present value is $4,000 Interest rate is 16% compounded…

Q: If you invest $10,000 today at 8% how much money will you have in five years?

A: Details given in the question are  : Present value (invest today) = $10000 Interest rate = 8% Time…

Q: Your client currently has $350,000 in an investment account.  The return on the account has been…

A: Current Amount in account (PV) is $350,000 Interest rate is 12.5% Compounded annually Future Value…

Q: How much money should you invest now to ensure $600 per year for 9 years starting next year. The…

A: Given Information: Rate of interest - 16% Annual amount - $600 per year No. of years = 9 To compute:…

Q: If you invest $25,000 today, and make 24 withdrawals of $1,200 at the end of each month beginning in…

A: Solution: The correct option is b) 15.20% Detailed explanation:  The initial Investment is $25000…

Q: How much should you invest each month in order to have $400,000 if your rate of return is 3.2%…

A: We need to use future value of the ordinary annuity formula to calculate monthly payment to get the…

Q: About how many years would it take for your investment to grow sixfold if it were invested at an APR…

A: Using NPER in Excel

Q: years from today, and 2,000 four years from today. What will the value of your account be 4 years…

A: The future value is the estimated value of an investment that accounts for compound interest or…

Q: Today you have $100,000 in your investment account, which will grow by 7.5% annually. If you keep…

A: Monthly interest rate = Annual interest rate / 12 = 0.075/12 = 0.00625 The number of months it takes…

Q: You invest $9,000 today at an annual interest rate of 5%. How much do you expect to have 5 years…

A: P = $9,000r = 5% = 0.05n = 5

Q: An investment will pay you $4000 each year for the next 8 years. The investment yields 6% APR,…

A: Step 1 Investors and financial advisers value the future value because it helps them determine how…

Q: An investment product promises to pay you PHP20,000 in dividends every year forever. What is the…

A: Perpetuity means infinite no. of payments which are same in size or can be grown with constant rate,…

Q: You have $10,000 to invest for five years. - How much additional interest will you earn if the…

A: Given Information : Amount invested - $10,000 (Present value) Rate of interest (r) - 5%/4.5% Time…

Q: 1. How much money will you have in an account after 16 years if your initial investment is $8300…

A: Compound interest is the interest calculated on both the principal amount as well as the interest…

Q: Find how much you should invest now at 6% interest, compounded quarterly in order to have $15,750 in…

A: Present Value: It represents the present worth of the future sum of the amount which is discounted…

Q: 3. Suppose one plans to invest $750 a month this year, $800 a month next year, $850 a month the year…

A: Future value of growing annuity is the future value of current stream of cash flows that keeps…

Q: Suppose you have an account that will grow to $381,000.00 in 15 years. It grows at 3% annual…

A: The annuity refers to a payment series that provides the holder with a periodic payment in exchange…

Q: 6. If you make a single investment of $300,000 and can earn 8.25% compounded monthly, how much money…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: How much will you need to invest today at 10% to have $10,000 six years from today?

A: Using excel PV function Where, PV = present value NPER = no. of years FV = future value

Q: ROUND ALL ANSWERS TO NEAREST DOLLAR How much will $10,000 grow to in 3 years, assuming an Interest…

A: Note: Since you have specifically used question number 10 to get solved, so we are solving the same…

Q: What single investment made today, earning 10 % annual interest, will be worth $10,000 at the end of…

A: A) The present value of a future value can be calculated using the formula below: Given; FV = 10000…

Q: Today, you decide to invest $7,000 for 29 years. If you can earn 9.05 percent for the first 19 years…

A: Here, Invetsment Amount $ 7,000.00Time Period of Invetsment29Interest Rate for first 19…

Q: How many years will it take for $14,000 to grow to $43,000 if you can earn an average rate of 8.8%…

A: Given information: Future value of amount is $43,000 Present value is $14,000 Average rate is 8.8%

Q: how much should you invest now in a single investment if you expect to withdraw $45,000 in 9 years…

A: Step 1: Introduction Present Value: The value of the money identified today for the money/sum of…

Q: eposit $10,000 into an investment account.  You believe that you can reasonably expect a compounding…

A: The more is compounding of interest rate more is the effective interest rate and more is future…

Q: You want to have $300,000 in 15 years.  You want to know how much you need to invest each month at…

A: Amount required or accumulated value (AV) = $300,000 Monthly interest rate (r) = 0.00416666666666667…

Q: You are investing $500 per month in an account where you expect a long term growth rate of 6%…

A: The concept of TVM states that money today is worth more than the same amount in the future because…

Q: You currently have $10,000 in your bank account. You will invest this $10,000 and $750 every quarter…

A: For calculation of annual rate of return we need to calculate rate per quarter first. The future…

Q: Today (n=0), a company invests $1,000 and expects that investment to grow 10% each period for the…

A: In order to calculate the present value  considered the interest rate and time. The  calculation of…

Q: At the end of each year for the next 18 years you will receive cash flow of $3700 the initial…

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

Q: Suppose you invest $1000 at 6% per annum compounded annually. Approximately how many years would it…

A: In the given question we require to calculate the the number of years in which $1000 will become…

Q: If you invest $10,000 today for 8 years, how much will the original investment be worth if…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: You are investing $25,000 for 10 years at 10%. How much more money would you have with monthly…

A: Variables in the question:Principal=$25000N=10 yearsRate=10%

Q: An investor plans to invest $500 a year and expects to get a 10.5% return. If the investor makes…

A: Formula to be used,   PV = P[1-(1+r)^-n]/r where, PV=Present value P=Principal amount r=Rate of…

Q: we have $1,000 and we are offered to put it in investments that will double this money in 8 years,…

A: Future Value is the value of current investments at a certain future date at the assumed interest…

Q: If you invest $56,000 today in an account that pays 8.3% a year, how much will you have in 31 years?…

A: Present Value, PV = $56,000 Interest rate, r = 8.3% Number of periods, n = 31 yearsThe future value…

Q: 8. If you make a single investment of $300,000 and add end of period monthly deposits of $3,350 and…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: You would like to have $19,928 in 12 years. If the rate is 8.45%, how much do you have to invest…

A: Future value required (FV) = $19928 Interest rate (r) = 8.45% Number of annual deposits (n) = 12

Q: How much should you invest each month in order to have $500,000 if your rate of return is 3.9%…

A: A liquid investment refers to an asset that can be easily bought or sold without causing significant…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.