The future value after contributing $1,000 at the end of each year for 40 years Introduction: Future value is the amount received at the end of a certain period with a certain money input in the beginning.

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Answer 1

Question

Chapter 17, Problem 1PA

Summary Introduction

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Expert Solution & Answer

Explanation of Solution

Given,

For the maturity period of 40 years the value can be calculated using the following values:

Present value is $1,000.

Duration is 40 years.

Interest rate is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute present value as $1,000, N as 40 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)40).09=$337,882.45

Hence, the future value for the amount deposited $1,000 at the end of period for 40 years compounded annually at the rate of 9% will be $337,882.45.

When there is no contribution after the end of 30 years then the receivable amount will be calculated as follows:

Given,

PMT is $1,000.

N is 30 years.

R is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the values of PMT as $1,000, N as 30 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)30).09=$136,307.54

The amount which will be received after 30 years will produce only the compound interest at 9% which is $136,307.54.

Now to calculate the future value of $136,307.54 for the rest of the 10 years at the rate of 9% the following could be calculated as follows:

Given,

PMT is $136,307.54.

N is 10 years.

r is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the above values of PMT as $136,30754, N as 10 years and R as 9%.

FV=PMT×((1+R)n−1R)=$136,307.54×((1+.09)10).09=$332,689.52

Conclusion

Thus the amount to be received after 40 years would be $332,689.52.

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4. On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for $105,000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY National Bank for an $84,000 conventional loan at 5 percent for 30 years. The lender informs Mr. and Mrs. Cleaver that a $2,100 loan origination fee will be required to obtain the loan. The loan closing is to take place September 22. In addition, escrow accounts will be required for all prorated property taxes and hazard insurance; however, no mortgage insurance is necessary. The buyer will also pay a full year's premium for hazard insurance to Rock of Gibraltar Insurance Company. A breakdown of expected settlement costs, provided by OKAY National Bank when Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on September 21, is as follows: I. Transactions between buyer-borrower and third parties: a. Recording fees--mortgage b. Real estate transfer tax c. Recording fees/document…

Answer 2

Question

Chapter 17, Problem 1PA

Summary Introduction

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Expert Solution & Answer

Explanation of Solution

Given,

For the maturity period of 40 years the value can be calculated using the following values:

Present value is $1,000.

Duration is 40 years.

Interest rate is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute present value as $1,000, N as 40 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)40).09=$337,882.45

Hence, the future value for the amount deposited $1,000 at the end of period for 40 years compounded annually at the rate of 9% will be $337,882.45.

When there is no contribution after the end of 30 years then the receivable amount will be calculated as follows:

Given,

PMT is $1,000.

N is 30 years.

R is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the values of PMT as $1,000, N as 30 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)30).09=$136,307.54

The amount which will be received after 30 years will produce only the compound interest at 9% which is $136,307.54.

Now to calculate the future value of $136,307.54 for the rest of the 10 years at the rate of 9% the following could be calculated as follows:

Given,

PMT is $136,307.54.

N is 10 years.

r is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the above values of PMT as $136,30754, N as 10 years and R as 9%.

FV=PMT×((1+R)n−1R)=$136,307.54×((1+.09)10).09=$332,689.52

Conclusion

Thus the amount to be received after 40 years would be $332,689.52.

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Answer 3

Question

Chapter 17, Problem 1PA

Summary Introduction

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Expert Solution & Answer

Explanation of Solution

Given,

For the maturity period of 40 years the value can be calculated using the following values:

Present value is $1,000.

Duration is 40 years.

Interest rate is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute present value as $1,000, N as 40 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)40).09=$337,882.45

Hence, the future value for the amount deposited $1,000 at the end of period for 40 years compounded annually at the rate of 9% will be $337,882.45.

When there is no contribution after the end of 30 years then the receivable amount will be calculated as follows:

Given,

PMT is $1,000.

N is 30 years.

R is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the values of PMT as $1,000, N as 30 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)30).09=$136,307.54

The amount which will be received after 30 years will produce only the compound interest at 9% which is $136,307.54.

Now to calculate the future value of $136,307.54 for the rest of the 10 years at the rate of 9% the following could be calculated as follows:

Given,

PMT is $136,307.54.

N is 10 years.

r is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the above values of PMT as $136,30754, N as 10 years and R as 9%.

FV=PMT×((1+R)n−1R)=$136,307.54×((1+.09)10).09=$332,689.52

Conclusion

Thus the amount to be received after 40 years would be $332,689.52.

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Answer 4

Question

Chapter 17, Problem 1PA

Summary Introduction

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Expert Solution & Answer

Explanation of Solution

Given,

For the maturity period of 40 years the value can be calculated using the following values:

Present value is $1,000.

Duration is 40 years.

Interest rate is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute present value as $1,000, N as 40 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)40).09=$337,882.45

Hence, the future value for the amount deposited $1,000 at the end of period for 40 years compounded annually at the rate of 9% will be $337,882.45.

When there is no contribution after the end of 30 years then the receivable amount will be calculated as follows:

Given,

PMT is $1,000.

N is 30 years.

R is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the values of PMT as $1,000, N as 30 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)30).09=$136,307.54

The amount which will be received after 30 years will produce only the compound interest at 9% which is $136,307.54.

Now to calculate the future value of $136,307.54 for the rest of the 10 years at the rate of 9% the following could be calculated as follows:

Given,

PMT is $136,307.54.

N is 10 years.

r is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the above values of PMT as $136,30754, N as 10 years and R as 9%.

FV=PMT×((1+R)n−1R)=$136,307.54×((1+.09)10).09=$332,689.52

Conclusion

Thus the amount to be received after 40 years would be $332,689.52.

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Answer 5

Chapter 17, Problem 1PA

Summary Introduction

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Expert Solution & Answer

Explanation of Solution

Given,

For the maturity period of 40 years the value can be calculated using the following values:

Present value is $1,000.

Duration is 40 years.

Interest rate is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute present value as $1,000, N as 40 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)40).09=$337,882.45

Hence, the future value for the amount deposited $1,000 at the end of period for 40 years compounded annually at the rate of 9% will be $337,882.45.

When there is no contribution after the end of 30 years then the receivable amount will be calculated as follows:

Given,

PMT is $1,000.

N is 30 years.

R is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the values of PMT as $1,000, N as 30 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)30).09=$136,307.54

The amount which will be received after 30 years will produce only the compound interest at 9% which is $136,307.54.

Now to calculate the future value of $136,307.54 for the rest of the 10 years at the rate of 9% the following could be calculated as follows:

Given,

PMT is $136,307.54.

N is 10 years.

r is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the above values of PMT as $136,30754, N as 10 years and R as 9%.

FV=PMT×((1+R)n−1R)=$136,307.54×((1+.09)10).09=$332,689.52

Conclusion

Thus the amount to be received after 40 years would be $332,689.52.

Answer 6

Chapter 17, Problem 1PA

Summary Introduction

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Expert Solution & Answer

Explanation of Solution

Given,

For the maturity period of 40 years the value can be calculated using the following values:

Present value is $1,000.

Duration is 40 years.

Interest rate is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute present value as $1,000, N as 40 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)40).09=$337,882.45

Hence, the future value for the amount deposited $1,000 at the end of period for 40 years compounded annually at the rate of 9% will be $337,882.45.

When there is no contribution after the end of 30 years then the receivable amount will be calculated as follows:

Given,

PMT is $1,000.

N is 30 years.

R is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the values of PMT as $1,000, N as 30 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)30).09=$136,307.54

The amount which will be received after 30 years will produce only the compound interest at 9% which is $136,307.54.

Now to calculate the future value of $136,307.54 for the rest of the 10 years at the rate of 9% the following could be calculated as follows:

Given,

PMT is $136,307.54.

N is 10 years.

r is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the above values of PMT as $136,30754, N as 10 years and R as 9%.

FV=PMT×((1+R)n−1R)=$136,307.54×((1+.09)10).09=$332,689.52

Conclusion

Thus the amount to be received after 40 years would be $332,689.52.

Answer 7

Chapter 17, Problem 1PA

Summary Introduction

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Answer 8

Expert Solution & Answer

Explanation of Solution

Given,

For the maturity period of 40 years the value can be calculated using the following values:

Present value is $1,000.

Duration is 40 years.

Interest rate is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute present value as $1,000, N as 40 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)40).09=$337,882.45

Hence, the future value for the amount deposited $1,000 at the end of period for 40 years compounded annually at the rate of 9% will be $337,882.45.

When there is no contribution after the end of 30 years then the receivable amount will be calculated as follows:

Given,

PMT is $1,000.

N is 30 years.

R is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the values of PMT as $1,000, N as 30 years and R as 9%.

FV=PMT×((1+R)n−1R)=$1,000×((1+.09)30).09=$136,307.54

The amount which will be received after 30 years will produce only the compound interest at 9% which is $136,307.54.

Now to calculate the future value of $136,307.54 for the rest of the 10 years at the rate of 9% the following could be calculated as follows:

Given,

PMT is $136,307.54.

N is 10 years.

r is 9%.

Formula to calculate future value,

FV=PMT×((1+R)n−1R)

Substitute the above values of PMT as $136,30754, N as 10 years and R as 9%.

FV=PMT×((1+R)n−1R)=$136,307.54×((1+.09)10).09=$332,689.52

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus the amount to be received after 40 years would be $332,689.52.

Answer 12

Ch. 17 - Prob. 1PA Ch. 17 - Prob. 2PA Ch. 17 - Prob. 3PA Ch. 17 - Prob. 4PA Ch. 17 - Prob. 5PA Ch. 17 - Prob. 6PA Ch. 17 - Prob. 7PA Ch. 17 - Prob. 8PA Ch. 17 - Prob. 1DC1 Ch. 17 - Prob. 2DC1

The future value after contributing $1,000 at the end of each year for 40 years Introduction: Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Videos

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Explanation of Solution

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Chapter 17 Solutions

The future value after contributing $1,000 at the end of each year for 40 years Introduction: Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Videos

To determine: The future value after contributing $1,000 at the end of each year for 40 years Introduction: Future value is the amount received at the end of a certain period with a certain money input in the beginning.

Explanation of Solution

Want to see more full solutions like this?

Chapter 17 Solutions

To determine:

The future value after contributing $1,000 at the end of each year for 40 years

Introduction:

Future value is the amount received at the end of a certain period with a certain money input in the beginning.