You invest 10000$ in a savings account today at j1 = 5%. you withdraw 500$ at the end of year 1, 550$ at the end of year 2, 600$ at the end of year 3, and so on (increasing the size of the annual withdrawal by 50$ each year with respect to the previous year). What is the account balance at the end of year 10?
rate positively..
Computation of balance at the end of 10th year | |||||
i | ii=i*5% | iii | iv=i+ii-iii | ||
year | Beginning balance | Interest earned | Amount with drawn | ending balance | |
0 | 10,000.00 | ||||
1 | 10,000.00 | 500.00 | 500.00 | 10,000.00 | |
2 | 10,000.00 | 500.00 | 550.00 | 9,950.00 | |
3 | 9,950.00 | 497.50 | 600.00 | 9,847.50 | |
4 | 9,847.50 | 492.38 | 650.00 | 9,689.88 | |
5 | 9,689.88 | 484.49 | 700.00 | 9,474.37 | |
6 | 9,474.37 | 473.72 | 750.00 | 9,198.09 | |
7 | 9,198.09 | 459.90 | 800.00 | 8,857.99 | |
8 | 8,857.99 | 442.90 | 850.00 | 8,450.89 | |
9 | 8,450.89 | 422.54 | 900.00 | 7,973.44 | |
10 | 7,973.44 | 398.67 | 950.00 | 7,422.11 | |
Ans = | 7,422.11 | ||||
You invest 10000$ in a savings account today at j1 = 5%. you withdraw 500$ at...
a) You invest 10000$ in a savings account today at j1 = 5%. At the end of each year you withdraw exactly 500$ from the account. What is the account balance at the end of year 15? b) Let us assume that instead of withdrawing 500$ at the end of each year, you withdraw 500$ at the end of year 1, 550$ at the end of year 2, 600$ at the end of year 3, and so on (increasing the...
you plan on savings $500 per month for 30 years and invest each of those payments at 10%. You then expect to withdraw $X(at the end of each month) for 25 years. That is, the first payment to yourself will be paid 1 month after you make your last savings deposits. If you expect to earn 8% during the payout period, how much can you withfraw each month during the last 25 years to completely drain you account on your...
How much should Miguel's dad invest into a savings account today, to be able to pay for Miguel's rent for the next 6 years if rent is $600 payable at the beginning of each month? The savings account earns 3.5% compounded monthly.
Five years from today, you would like to withdraw $5,000 from an account that pays an interest rate of 5% per year. How much do you need to deposit in the account today in order to make the withdrawal? 4113.51 5000.00 4761.90 4000.00 3917.63
You currently have 10,000 in a savings account that earn 6% per year, how much can you withdraw at the end of each of next three years from thus account and have zero balance after the third withdrawal?
You have $150,000 to invest today. You found a deal that will pay you $300,000 if you wait 20 years before you withdraw the money? What is the implied rate of interest in you invest and wait 20 years? 3.2% 3.5% 5.1% 6.2% 6.8% Assume you have $5,000 today in a bank savings account, you plan to add $2,000 one year from now and $3,000 two years from now. How much will you have in the bank at the end...
6 If you invest $6,000 today in a savings account at an interest rate of 4% compounded anually, how much principal and interest would you accumulate in 10 years?
Assume that you can invest $1,000 in a savings account or a fund consisting of different stocks. If you invest in the savings account, you get 1% interest per year. The fund has annual return X with expected value E(X) = 6% and standard deviation o(X) = 20%. This means that, compared to the savings account, the fund has a higher return on average, but also comes with risk. When you invest y dollars in the fund, you will have...
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...
3. You invest $400 today, $500 next year, and $600 in 3 years from now. How much will you have 10 years from now ifyou are earning 12% on your savings? A) $7,500 B) $8,600 C) $3,955 D) $2,810