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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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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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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. 1DC1 Ch. 17 - Prob. 2DC1 Ch. 17 - Prob. 3DC1

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

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.