You plan to deposit $300 each year into an IRA earning 4% interest annually. How much will you have in your account in 20 years? Your Answer: Answer
Q: What value of X makes these two cash flows equivalent assuming an interest rate of 10%? 150 150 100…
A: here we calculate the value of X by using the given cashflow , so the calculation of the following…
Q: (Using Appendix A) How much will be in the bank account at the end of 15 years if $ 100 is invested…
A: Semi-annual interest rate (i) = 8% / 2 = 4% Number of semi-annual compounding periods (N) = 2 x 15 =…
Q: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…
A:
Q: Compared the interest earned by $13,000 for seven years at 8% simple interest with interest earned…
A: Given: Principal amount ( P) = $13,000 Interest rate(r) = 8% Time(t) = 7 years
Q: Hunan bought a car priced at $15,800 for 15% down and equal monthly payments for four years. If…
A: Monthly payments refers to a borrower pays down some of the outstanding balance with interest and…
Q: What is the present value of a $750 payment when interest is 6.75% in 2 years? $657.90…
A: we have interest in two years = 6.75% = 0.0675 we have formula for present value of the annuity as…
Q: Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years…
A: The realistic portrayal of each money related esteem with time is known as cash flow diagram. The…
Q: How much money will be in a bank account at the end of 15 years if $100 is deposited today and the…
A: Deposit refers to the amount of money that is kept in the bank for safekeeping. Banks pay interest…
Q: You are buying a home for $500,000. If you make a down payment of $80,000and take out a mortgage on…
A: Mortgage amount and number of years can be calculated as follows:
Q: You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be…
A: According to question, given that Borrowing amount $28,000@12%/year a) AP represented annual…
Q: For a nominal interest rate of 6%, what is the effective interest rate if interest is (a.)…
A: The effective rate of interest is the return on a savings account or an investment, whose interest…
Q: An investment of P2880 is made at the beginning of each month for 9 years and 4 months. How much…
A: We have given that the investment is made at the beginning of each month and A =₱2880 Length of…
Q: An investment of $3523 is made at the beginning of each month for 5 years and 10 months. How much…
A: Total months(n) =years*12+months=5*12+10=70 interest rate per month (r)=1% Amount invested per month…
Q: At the beginning of every three months, a college student deposits $3,000 in a fund that gives 2%…
A: Depositing every three months till 48 months at the beginning forms the annuity series or annuity…
Q: A man wants to make 14% nominal interest compounded semiannually on a bond investment. How much…
A: Given: Interest rate=14% Coupon rate=12% Price of bond=P 10000 Maturity=20 years Duration=Semi…
Q: How much should you invest in a 3.8% saving account compounded monthly in order to have a total of…
A: Given: Interest rate=3.8% Future value=P 68185 Number of years=7
Q: How much must be deposited at the beginning of each year in an account that pays 5%, compounded…
A: The compound interest formula is given as: A=P(1+r)t Where, A is the final amount compounded on an…
Q: Which of the following is the preferable interest rate for investing your money? (i) 12% Compounded…
A: Given: Interest rate (r)=12%
Q: A large bank has increased its annual percentage rate (APR) on credit cards to 30%. This move was…
A: Meaning of Annual Percentage Rate (APR): The term annual percentage rate refers to that rate that…
Q: You are going to invest $1,500 today in a fund today. After 10 years, you want to have exactly…
A: Principal = $1,500 Time =10 years Amount =$2,500 or Principal1+R10010=2500or 15001+R10010=2500or…
Q: At 8% annual interest compounded monthly, how long will it take to become a millionaire if you…
A: The annual interest rate is 8%, compounded monthly The amount invested is $150,000 We have to find…
Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…
A: Deposit = 10,000 deposit after 2 years = 5,000 withdraw after 5 years = 8,000 interest rate = 10%
Q: What simple interest rate (in %) is equivalent to 5% compounded quarterly if money is invested for 9…
A: Answer to the question is as follows
Q: When you take your job, you decide to start saving for your retirement. You put $5,000/yr into the…
A: Monthly investment A= 5000 Rate of interest = 8% / year We have to calculate the amount of total…
Q: If you invest $150,000 at an interest rate of 10% compounded annually, what is your total balance…
A: The interest rate is the income earned by the investment in the economy. When the money is invested…
Q: How much should I expect a lump sum from a deal at the end of 3 years if I start investing today at…
A: *answer: Given, Annuity =5879 Time(n) = 3 x 4 quarters=12 quarters Interest (r) =0.09 compounded…
Q: earns an annual interest rate of 2.75%.
A:
Q: If you invest $7,000 at 12% compounded continuously, approximately how much will it be worth in 3…
A: Amount is compounded continously with initial value of $7000 at 12% interest for 3 years
Q: If P25,000 is invested at 8% interest compounded quarterly, how many years will it take for this…
A: Quarterly nominal interest rate = 8% / 4 = 2% Let number of quarters be N. Then 25,000 x (1.02)N =…
Q: e interest rate on an account is 11.5% compounded yearly, approximately how many years will it take…
A: The formula is used to calculate the number of years : Here "A" is the amount in the account after…
Q: What is the total amount available upon the deposit of the sixth payment if P500.00 is invested at…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: A company borrowed $200,000 at an interest rate of 8% compounded annually over six years. The loan…
A: The company borrowed the amount which is equal to $200,000 and it is given that the rate of interest…
Q: The Weidmans want to save $35,000 in 4 years for a down payment on a house. If they make monthly…
A: Interest is an amount of payment that is generally paid on a deposit or lent money by the financial…
Q: Twenty years from now, Angelo plans to buy a new motorbike worth BD10,000. The current rate of…
A: FV = 10,000 r = 8% n = 20
Q: How much will be in a bank account at the end of five years if $2000 is invested today at 12 percent…
A: Answer: Given, Principal = $2000 Interest rate per annum = 12% Number of years = 5 The following…
Q: Suppose that you invest $1,000 for 1 year at 18% compounded monthly. How much interest would you ear
A: Given information: Investment amount = $1000 Time period = 1 year Interest rate = 18%
Q: 863,171 is placed in an account at 3.66% compounded quarterly for 7 years. How much is in the…
A: pv = P863,171
Q: Liz plans to deposit $20,000 in the bank now and another $5,000 two years from now. If she plans to…
A: Introduction: An annuity of payments is made at fixed distances. Examples of annuities are recurring…
Q: How much should I deposit in a trust now (time zero) if it has to yield $100,000 at time zero,…
A: Future Value (FV) An asset's future value (FV) can be calculated using an expected rate of increase.…
Q: You are saving up for a down payment on a house. You will deposit $600 a month for the next 24…
A: APR stands for annual percentage rate, which excludes compound interest. Your investments' interest…
Q: Suppose you deposit $35,000 in an account today that pays 3.78% interest, compounded annually. How…
A: The compound interest adds the interest acquired on a time period to the principal amount and the…
Q: Provide answers in the form of a percentage to three decimal places . (a).What is the effective…
A:
Q: How much do you have to deposit now in your savings account that earns a 9% compound annual interest…
A: In economics and finance, present value, also known as present discounted value, is the value of an…
Q: At 8% annual interest compounded quarterly, how long will it take to become a millionaire if you…
A: Interest is the amount received in excess of the investment to an investor. The two methods of…
Q: What should be the price of perpetuity that pays P5.000 every month with an interest rate of 8%…
A: Given payment each month = 5000 Interest rate = 8 % compounded annually Total payment each year =…
Q: What equal monthly payments will repay an original loan of $10,000 in six months at a rate of 6%…
A: P= $10000 n=6 r=6%
Q: Katy invests $13,000 at 6% simple interest for 38 years. Round your answers to the nearest cent. How…
A: Interest is the cost of borrowing money or credit. It can be expressed in monetary terms or as a…
Q: uppose you want to withdraw $1500 every 6month from an account that's pays 14% interest compounded…
A: Given 6-Monthly withdraw amount A= $1500 Rate of interest = 14% compounded twice a year or…
Q: What is the present equivalent of $18,000 to be received in 15 years when the interest rate is a.…
A:
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- Today you deposited $10,000 in a savings account paying 7% annual interest. How much should you have at the end of five years?Joe just completed his engineering degree and started to work for an engineering firm. Joe wants to retire early after 30 years working. He plans to invest $5,000 at the end of every year for a 30-year career. If Joe needs $3,954,750 in savings at retirement, what interest rate must the investment earn?If you borrowed $24,000 at 12% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?
- 22. You deposited $15,000 in a savings account five years ago. The account has earned 5.25% interest compounded continuously since then. How much money is in the account today?To have a total of $10,000 after 8 years, what principal do you have to deposit in a 4.5 percent saving account compounded monthly?Find FV: You have $2,000 in a savings account that earns 1.5% interest per year. What will be the balance in your account: in one year? in five years? in ten years?
- Explain the true effect of more frequent compounding on annual interest amounts?One person bought a DVD player for $399.00. You paid a down payment of $99.00 and agreed to pay the balance plus an amount of $10.00 at the end of three months as interest. What annual simple interest rate would you be paying?How long will an account invested at 11.5% compounded yearly be tripled?
- You want to buy a $32,000 car. You can finance the car for 1.5% interest for 6 years. What is your monthly payment? Assume monthly compounding. Do not enter the negative sign from your calculator (if there is one) or the dollar sign. Round to two decimal places.A couple deposits $24,000 into an account earning 3% annual interest for 30 years. Calculate the future value of the investment if the interest is compounded quarterly. Round your answer to the nearest cent. FormulasMaria takes out a 30-year mortgage for $235,136 at an annual interest rate of 4.2%. How much does she still owe when there is 1 year left on the loan? Round your answer to the nearest dollar.