pm You have $35,000 in a brokerage account, and you plan to deposit anadditional $500 at the end of every future month until your account totals $300,000 so you can withdraw the money for a down payment. You expectto earn 10% APR on the account. How many years will it take to reach yourgoal?

To solve this problem, we need to calculate how long it will take for the account to grow from…

Answered: You have $35,000 in a brokerage…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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Similar questions

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?
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 have $58,138.29 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $240,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.
Please help with this one im not sure
You have 45,589.25 in a brokerage and you to deposit an additional 5,000 at the end of every future year until your account totals $250000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number
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You plan to deposit $1,500 per year for 4 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 4 years? Do not round intermediate calculations. Round your answer to the nearest cent.$ Assume that your deposits will begin today. What amount will be in your account after 4 years? Do not round intermediate calculations. Round your answer to the nearest cent.$
You have $20,800.51 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $280,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.
You plan on depositing $370 every month for the next 11 years in an account that pays a 0.8% interest every month. How much money will you have after the planned 11 years? Assume the account starts with a balance of $0.
if you deposit $17,000 in the bank today, you will be able to withdraw $24,000 from the account in six years. what is the implied rate that the back is paying?
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You have $35,000 in a brokerage account, and you plan to deposit an additional $500 at the end of every future month until your account totals $ 300,000 so you can withdraw the money for a down payment. You expect to earn 10% APR on the account. How many years will it take to reach your goal?