If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need to deposit each year for these 7 years? Assume that your money will earn 10 percent per year.
Q: You are scheduled to receive $44,000 in two years. When you receive it, you will invest it for 7…
A: Computation:
Q: You want to be able to withdraw $40,000 from your account each year for 15 years after you retire.…
A: The Present Value of this withdrawal is computed as follows: Withdrawal = $40,000 Time period = 15…
Q: What would you pay for an annuity of $2,000 paid every six months for 12 years if you could invest…
A: Details given in the question are : Annuity payment every six months (PMT) = $2000 Time period (n) =…
Q: Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: You decide to make annual deposits of $300.00 for 12 years into an account which pays 5% compounded…
A: Annual deposits = $300 Time duration = 12 years Interest Rate = 5% The future value of the annuity…
Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…
A: Given: Future value = $50,000 Interest rate = 4.5% Years =10
Q: you wish to save $30,000 as a down payment for a house in 7 years. How much must you save every year…
A: Given: FV =$30000NPER =7 YearsRate of Interest =4%
Q: You deposit $1000 each year into an account earning 6% interest compounded annually. How much will…
A: Future value of any deposits made is equivalent to the compounded value of deposits made for all the…
Q: You are offered the opportunity to put some money away for retirement. You will receive 6 annual…
A: Computation:
Q: Omar wants to buy a house in another 7 years. The type of house he wants to buy is currently selling…
A: Future value: Future value is $97,435.86
Q: A balloon payment of $21,000 on your house is due in 10 years. Ifyou can earn an average of 5…
A: INTEREST RATE 5% YEARS 10 PMT 0 FUTURE VALUE 21000
Q: You plan to save $4,800 at the end of each year for the next 8 years. How much money will you…
A: Future value is to be calculated , rate of interest is 4% and time is year by paying regular…
Q: Assume you deposit $5,200 at the end of each year into an account paying 10 percent interest. a.…
A: deposit made at the end of each year = $5200 interest rate annum = 10%…
Q: Jeremy is investing $5,000 today and will do so at the beginning of another nine years for a total…
A: The future value of the annuity due is the future worth of a cash flow series receivable/period at…
Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $73,000 of…
A: The provided information are: Particular Value RATE 5.25% YEARS 19 PMT (MONTHLY PAYMENT)…
Q: Jami Minard wants to receive an annuity of $8,000 at the beginning of each year for the next 10…
A: Annuity refers to a contract between an individual and an insurance company under which a desired…
Q: You want to be able to withdraw $30,000 from your account each year for 25 years after you retire.…
A: in this problem you have to calculate present value of retirement amount and that will be retirement…
Q: You would like to have $15,000 in 4 years for a down payment on a home. How much would you need to…
A: Future value or amount required for down payment = FV = $15,000 Semiannual period of annuity = t = 8…
Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…
A: The rate of interest required to have the desired amount can be calculated with the help of rate…
Q: If I would like to have $250,000 in my savings account after making contributions for 30 years, what…
A: Present Value = Monthly Contributions * PVAF ( Monthly Rate, number of Months )
Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…
A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%
Q: You need to have $25000 for a down payment on a house in 5 years. If you can earn an annual interest…
A: Concept is of present value. Present value is the current value of a future cash flow at a specified…
Q: You are saving money for a down payment on a new house. You intend to place $5,000 at the end of…
A: The amount at the end of the fifth year is the future value of the payments. The future value is the…
Q: Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r FV = $80,000 n = no. of compounding period 10*12…
Q: You are going to receive a payment at the end of each year for the next 12 years. If you invest each…
A: The future Value of an investment is an estimation of receiving some amount after some period of…
Q: If you wish to accumulate $25,000 by the end of 5 years, how much would your annual payment be if…
A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…
Q: You plan to retire in exactly 20 years' time and expect to live for 30 years after you retire. In…
A: Annuity is the concept of accepting or depositing equal amount at equal time interval over a period…
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A: Present value (PV) is the current value of future money or cash flows at a specified rate of return.…
Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…
A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%
Q: You will need $46000 for a down payment on a house in 9 years. How much should you deposit in a…
A: Present value refers to the current worth of the amount that is expected to be received in future…
Q: John and Rosamond want to retire in 10 years and can save $130 every three months. They plan to…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: Suppose you invest in an annuity that pays 5% annual interest, compounded quarterly. If you…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: ow $ 150,000 for a house with 10% down payment at 8% compound annual interest rate for 30 years,…
A: The given problem can be solved using PMT function in excel. PMT function computes installment…
Q: Can you help me work out this problem in detail? Ben wants to receive $6,000 a year for 10 years.…
A:
Q: When you retire at 65, you wish to be able to have $3,000 each month for 25 years. How much would…
A: Firstly calculate the present value of annuity with $3000 as PMT and 25 years, use this present…
Q: You want to be able to withdraw $25,000 from your account each year for 25 years after you retire.…
A: Here, Withdrawal Amount is $25,000 Time Period of Withdrawal (Withdrawal Period) is 25 years Time…
Q: You want to have 75000 in your savings account 12 years from now, and you’re prepared to make equal…
A: Given information: Amount at the end (Future value) 75000 Time Period (in years) 12 Interest…
Q: You plan to buy the house of your dreams in 18 years. You have estimated that the price of the house…
A: Monthly payment refers to the periodic payments made towards the acquisition of an asset or security…
Q: when you retire 40 years from now you plan to make 10 annual withdrawals from your savings accounts…
A: The present value is calculated by multiplying all future cash flows by present value factor using…
Q: You deposit $200 each month into an account earning 5% interest compounded monthly. How much will…
A: Future worth of the amount is referred as the worth of the currently deposited amount at some future…
Q: You are going to receive a payment of $80 at the end of each year for the next 20 years. If you…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: How much money will you accumulate by the end of year 10 if you deposit $3,000 each for the next ten…
A: Annuity payment (PMT)= $3,000 Time period (n)= 10 years Rate of interest (i)= 5% per year Future…
Q: Suppose that you would like to have $25,000 to use as a down payment for a home in five years by…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: If you save $25 per week by bringing your lunch to school for 4 years, 12 months per year, and you…
A: There are two types of annuity that we could calculate: Ordinary annuity and Annuity due. The…
Q: You expect to retire in 25 years. After you retire, you want to be able to withdraw $3000 dollars…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: You want to be able to withdraw $35,000 from your account each year for 20 years after you retire.…
A: The concept of the time value of money states that the current worth of money is more than its value…
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- Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.
- Using the Time Value of Money for Retirement Planning. Carla Lopez deposits $3,400 a year into her retirement account. If these funds have an average earning of 9 percent over the 40 years until her retirement, what will be the value of her retirement account?You plan to retire in 20 years. At the point of retirement, you want to be able to withdraw 25478 at the end of each year forever. Assume that you earn a 7.11% rate of return prior to retirement and an 4.54% rate of return after retirement. If you do not want to make any further contributions to your retirement fund, how much do you need today? Round answer to the nearest dollar.To supplement your retirement, you estimate that you need to accumulate $290,000 exactly 41 years from today. You plan to make equal, end-of-year deposits into an account paying 8% annual interest. a. How large must the annual deposits be to create the $290,000 fund by the end of 41 years? b. If you can afford to deposit only $800 per year into the account, how much will you have accumulated in 41 years?
- 7. You have just made your first P2,000 contribution to your individual retirement account. Assuming you earn a 10 percent rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? 8. You are scheduled to receive P30,000 in two years. When you receive it, you will invest it for six more years at 6.5. percent per year. How much will you have in eight years? 9. The first comic book featuring Superman was sold in 1938. In 2003, the estimated price for this comic book in good condition was about P350,000. This represented a return of 26.09 percent per year. For this to be true, what must the comic book have sold for when new? 10. You are trying to save to buy a new P150,000 car. You have P40,000 today that can be invested at your bank. The bank pays 5.5. percent annual interest on its accounts. How long will it be before you have enough to buy the car?1. Retirement Planning. A couple will retire in 50 years; they plan to spend about $30,000 a year in retirement, which should last about 25 years. They believe that they can earn 8 percent interest on retirement savings. a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year.b. How would the answer to part (a) change if the couple also realizes that in 20 years, they will need to spend $60,000 on their child’s college education?K. Tanja wants to establish an account that will supplement her retirement income beginning 30 years from now. Find the lump sum she must deposit today so that $400,000 will be available at time of retirement, if the interest rate is 10%, compounded quarterly. How much must Tanja invest? P= (Round to the nearest cent as needed.)