You invested $2m today in an account that is expected to earn 15% annually for the next five years. As a result of this investment, the account will pay you the same amount $Y per year for the next five years, after which you will have $0 in the account. At the end of year 1, what is the balance in the account after the withdrawal of the first $Y?

Q: A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500…

A: Here, First Deposit is $10,000 Constant Decrease in payment is $500 Interest Rate is 15% Last…

Q: Q4. You plan to save the following amounts: 3,095 today 7, 566 per year for the next 10 years 8,390…

A: Savings amount today = $3095Amount for the next 10 years = $7566Amount next 1 year = $8390Amount for…

Q: u are able to invest $100 at the end of 1 year into an investment earning 6%. At the end of year 2,…

A: Future value of money increases with due to accumulation of interest over the period of time of…

Q: If you deposit $50,000 in an account that pays an annual interest rate of 10% compounded monthly,…

A: The objective of this question is to calculate the future value of an investment given the initial…

Q: How much money will be in the bank account at the end of 4 years if $5000 is deposited at the end of…

A: Future value: It implies to the value that an investment will carry at some point of time in future…

Q: You place $4000 into an account paying 8% compounded annually. Inflation is 2.5% during each of the…

A: The real rate of return is the actual rate of return after taking inflation into account. The…

Q: ou deposit $500 in an account earning 7% interest compounded annually. How much will you have in…

A: Given information: Present Value of deposited money : $500 Interest rate : 7% Time period : 10 years…

Q: You deposit $7,000 into an account earning interest at a 7% APR.  You keep the money in the account…

A: Initial deposit = $7,000 Interest rate = 0.07 or 7% Period = 5 years Money in account at the end of…

Q: You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments…

A: Future value refers to the value of the current asset at some future date affected by interest and…

Q: Beginning 2 years from today, you deposit $1,500 per year for 18 years (18 deposits); for the…

A: Present value of 18 deposits at the end of Year 1 would present value annuity of $1500 for 18 years…

Q: Suppose that you deposit $200 at the end of each month into an account paying an expected annual…

A: given, monthly compounding N    =10 x 12 = 120I    =3%12PV   =0PMT =200   FV    = need to find

Q: Suppose you invest $1,200 in an account paying 4% interest per year. a. What is the balance in the…

A: Compound Interest With compound interest, more interest can be earned compared to simple interest…

Q: If you deposit $8700 today in an account that pays 8.5% per year, compounded quarterly, how much…

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

Q: You want to be able to withdraw $5800 each year for 10 years. Your account earns 3% compound…

A: An annuity is the plan that gives a fixed amount in return for a lump sum. It is usually made with…

Q: If you make monthly $500 deposits into your investment account paying 9.58% interest annually, how…

A: Interest is an amount which is received on the deposited amount for the period. It increases the…

Q: If you deposit $6800 today in an account that pays 5.0% per year, compounded quarterly, how much…

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

Q: If you deposit $700 every year for the next 5 years, with first deposit to be made today and all…

A: Amount deposit per year = $700 Time period = 5 Years Interest Rate = 3.76%

Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: You deposit $1,800 into a 9% account today. At the end of two years, you will deposit another…

A: Deposit now = $ 1800 Interest rate = 9% Deposit 2 years from now = $ 3000 Purchase 5 years from now…

Q: If you were to make a deposit of $5,000 today in an investment account expected to pay 5% pa.…

A: The question is related to Time Value of money.When interest is calculated on total of previously…

Q: You have deposited $1,500 in an account that promises to pay 8% compounded quarterly for the next…

A: The objective of this question is to calculate the future value of an investment with quarterly…

Q: If for the next 40 years you place $3,000 in equal year-end-deposits into an account earning 8% per…

A: The amount of $3,000 that is being placed in equal year end deposits is an annuity. The amount that…

Q: You expect to receive P1,000 at the end of each of the next 3 years. You will deposit these payments…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

Q: If you deposit $12,000 per year, at the end of each year for 8 years in an account that pays an…

A: Annuity refers to a stream of constant and periodic cash flows. The annual amount of $12000 is an…

Q: You invest $10,000 at the end of each 5 years. If i=4%, What is the value of the account at EOY 5?…

A: At the end of year 5, the value of the account where $10,000 is invested every 5 years at an…

Q: You deposit $4000 in an account earning 3% interest compounded monthly. How much will you have in…

A: The amount after 10 years will be the future value of the initial deposit.

Q: You currently have $250,000 in your retirement account. What equal annual amount can you withe each…

A: We will have to use the concept of time value of money to solve this.

Q: You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly.…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: You deposit $4000 each year into an account earning 2% interest compounded annually. How much will…

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

Q: you deposit $3000 today in an account earning 3.5% annual interst and keep it for 10 years. In 10…

A: Total amount present in the bank account after 30 years is $111,430.6Explanation:First we calculated…