If you invest $1000 now at an interest rate of 5% compounded annually, how many annual...
Homework Answers
Annual withdrawals = $200. Amount invested = $1000. Rate = 5%, Time = n
This information suggests that
present value = annual withdrawal x (P/A, i%, n)
1000 = 200 x (P/A, 5%, n)
(P/A, 5%, n) = 5
For n = 6, (P/A, 5%, n) = 5.0757 and for n = 5, (P/A, 5%, n) = 4.3295.
Hence n should be 5 and we can make 5 annual withdrawals of $200 each with $1000 deposited now.
Add Answer to:
If
you invest $1000 now at an interest rate of 5% compounded annually,
how many annual...
If you invest $1000 now at an interest rate of 5% compound ed annually, how many...
If you invest $1000 now at an interest rate of 5% compound ed annually, how many annual withdrawals of $200 could you make until the fund is exhausted (closest to zero)?
If you deposit $4,400 now at a 3% annual interest rate, how many years (to the...
If you deposit $4,400 now at a 3% annual interest rate, how many years (to the nearest year) until you have $7,700, assuming you do not make any other deposits or withdrawals? (Enter your answer as an integer.)
You invest $1000 in an account that pays a rate of 5%, compounded semi-annually. How much would...
You invest $1000 in an account that pays a rate of 5%, compounded semi-annually. How much would you have after 2 years if you leave the funds on deposit? You should provide all the calculation process and formulas.
12. Compound interest. You invest $1000 in an account that pays 5% compounded annually. What is...
12. Compound interest. You invest $1000 in an account that pays 5% compounded annually. What is the balance after two years? 13. Compounding using different periods. You invest $2000 in an account that pays an APR of 6%. a. What is the value of the investment after three years if interest is compounded yearly? Round your
invest $8000.00 with a company for 5 years who offers an annual interest rate 4.7% compounded...
invest $8000.00 with a company for 5 years who offers an annual interest rate 4.7% compounded monthly, but no withdrawals allowed. At the end of 5-year, how much will you have? Please go step-by-step.
-27 How much invested now at an interest rate of 9% compounded annually would be just...
-27 How much invested now at an interest rate of 9% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $3,000 occurring two years from now, the second payment in the amount of $4,000 five years thereafter, and the third payment in the amount of $5,000 seven years thereafter? 62.34 What is the future worth of a series of equal yearly deposits of $5,000 for 7 years in a savings...
1] Assume you have $2,500 to invest today at 5% interest compounded annually Determine how much...
1] Assume you have $2,500 to invest today at 5% interest compounded annually Determine how much you will have accumulated in the account at the end of: a) 5 years b) 10 years 2] Assume instead an annuity of $2,500 (which means you will invest $2,500 per year) which will also be compounded at 5% interest annually. Determine how much you will have accumulated in the account at the end of (future value): (Note this problem is for an annuity...
Your bank pays an interest rate quoted as 4.0% per annum compounded semi-annually. You invest $10,000...
Your bank pays an interest rate quoted as 4.0% per annum compounded semi-annually. You invest $10,000 into the bank now for a 5 year period. What will your balance be after 5 years?
Compare simple and compound interest (compounded annually) on a principal of $25,000 at an annual rate...
Compare simple and compound interest (compounded annually) on a principal of $25,000 at an annual rate of 4%. Find the number of years it takes for the the difference of the TOTAL using Simple interest and TOTAL using compound interest (compounded annually) to reach more than $1000.
1. $800 invested at an annually compounded interest rate of 6 percent will be worth how...
1. $800 invested at an annually compounded interest rate of 6 percent will be worth how much at the end of 10 years? a) $1,280. b) $1,433. c) $1,417. d) $1,369. 2. What is the present value of $500 to be received eight years from now if the interest rate is 5 percent? a) $300. b) $338.42. c) $700. d) $738.72 3. Kira has $2,000 to invest today that she wants to grow to $3,000 in five years. What annually...
If you invest $1000 now at an interest rate of 5% compound ed annually, how many annual withdrawals of $200 could you make until the fund is exhausted (closest to zero)?
12. Compound interest. You invest $1000 in an account that pays 5% compounded annually. What is the balance after two years? 13. Compounding using different periods. You invest $2000 in an account that pays an APR of 6%. a. What is the value of the investment after three years if interest is compounded yearly? Round your
-27 How much invested now at an interest rate of 9% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $3,000 occurring two years from now, the second payment in the amount of $4,000 five years thereafter, and the third payment in the amount of $5,000 seven years thereafter? 62.34 What is the future worth of a series of equal yearly deposits of $5,000 for 7 years in a savings...
1] Assume you have $2,500 to invest today at 5% interest compounded annually Determine how much you will have accumulated in the account at the end of: a) 5 years b) 10 years 2] Assume instead an annuity of $2,500 (which means you will invest $2,500 per year) which will also be compounded at 5% interest annually. Determine how much you will have accumulated in the account at the end of (future value): (Note this problem is for an annuity...
Most questions answered within 3 hours.
-
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 2 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 2 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 2 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 2 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 2 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 2 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 2 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 2 hours ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 2 hours ago -
The reaction rate of CO and NO2 in the reaction
CO(g) + NO2(g) → CO2(g) +...
asked 2 hours ago -
Imagine that a chemist puts 6.40 mol each of
C3H8 and O2 in a 1.00-L container...
asked 3 hours ago -
How much money should be invested today in order to have $8340
at the end of...
asked 3 hours ago