Question
show all working
1. Suppose you have about $65,000 now. a. If you open a money market savings account that pays 1.5%, how much will you have i
0 0
Add a comment Improve this question Transcribed image text
Answer #1
Present value = $65,000
Interest rate = 10%
Period = 10 years
Compounding annually
a.
Excel formula Money after 10 years
=FV(4.5%,10,0,-65000,1) $                 1,00,943.01
You will have $100,943.01 after 10 years
b.
Excel formula Rate
=RATE(10,0,-65000,200000,1) 11.90%
To grow 65000 deposit into 200,000 you have to earn 11.90% rate
c.
Excel formula Years
=NPER(4.5%,0,-65000,200000,1) 25.53
If you keep money in account it will take 25.53 years to grow 200,000
Add a comment
Know the answer?
Add Answer to:
show all working 1. Suppose you have about $65,000 now. a. If you open a money...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Answer all questions and show working 2. Beniamin Franklin left $1,000 to Massachusetts and the city...

    Answer all questions and show working 2. Beniamin Franklin left $1,000 to Massachusetts and the city of Boston when he died in 1790. He also gave same amount to Pennsylvania and the city of Philadelphia. The money was paid to Franklin when he held political office, but he believed that politicians should not be paid for their service. The money would be paid out in 1990, 200 years after Frankin's death, to be used to train young people as specified...

  • mobily 4G 8:33 PM 11%; Back Assignment 1 2. In 1790 Benjamin Franklin left $4,600 each...

    mobily 4G 8:33 PM 11%; Back Assignment 1 2. In 1790 Benjamin Franklin left $4,600 each to the cities of Philadelphia and Boston. He stipulated that the money be invested and that the principal not be touched for 100 years a. If the money had been invested at 4%, compounded yearly, how much would each city have had in 1890? b. How much if it had been invested at 5%, compounded yearly? C. 3. Calculate the present value of $1,000...

  • Please I need aclarify answers with details in all the questions. Thank you 1. Newborn baby...

    Please I need aclarify answers with details in all the questions. Thank you 1. Newborn baby Gregory, born today, has doting grandparents who education. They calculate that he will need S25,000 per year for 4 years beginning at age 18. In addition, they'd like to give him a lump sum of S50,000 at age 22 so he can buy a car for his graduation. They want to make 18 equal annual payments into a 10% interest-paying account (starting today and...

  • Please Show all work and formulas! Problem 4 You have just won a lottery of $1...

    Please Show all work and formulas! Problem 4 You have just won a lottery of $1 million and you can choose among the following three payout options.  The effective annual interest rate (EAR) is 5%. Option A: $200,000 right now and $100,000 every two years, starting 2 years from now and ending 16 years from now. Option B: $100,000 a year at the end of the next 10 years, with the first payment one year from today. Option C: Twenty annual...

  • Practice Problems 1. You invest $8,000 in a savings account, the interest rate is 12% per...

    Practice Problems 1. You invest $8,000 in a savings account, the interest rate is 12% per year and the length of time is 15 years. Compounding is monthly. What is the value of the savings account at the end of ten years? 2. What would be the answer if compounding is every six months? 3. How many periods does it take for money to double if the interest rate is 12% per period? 4. If the interest rate is 12%...

  • 1. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in...

    1. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want to withdraw $4,000 at the beginning of each month, how long before the savings plan is exhausted? 2. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want the plan to last 40 years, how much can you withdraw...

  • please answer all in full 1. On your 1st birthday, you received a $10 savings account...

    please answer all in full 1. On your 1st birthday, you received a $10 savings account earning 6% annually. How much will you have in the account on your 30th birthday if you don't withdraw any money before then? 2. Your partner just promised to you that he/she will give you a graduation gift by paying half of of a new car when you receive an MBA degree in 2 years. Suppose that you also have $9,000 to invest today...

  • 1)How much money do you need to deposit into an account annually if you desire to...

    1)How much money do you need to deposit into an account annually if you desire to have $9 million in 45 years. Assume a 4% annual interest rate, compounded annually. Your first deposit will occur at the end of the first year. 2) Your machine operator is becoming more productive and generates additional profit each year. You expect to receive $39,000 in profit at the end of the year, but this will increase by 8% a year for the next...

  • 1. You have $200 to invest. If you put the money into an account earning 4​%...

    1. You have $200 to invest. If you put the money into an account earning 4​% interest compounded​ annually, how much money will you have in 10 years? How much money will you have in 10 years if the account pays 4​% simple​ interest? 2. You have $1,300 to invest today at 5​% interest compounded annually. a.  Find how much you will have accumulated in the account at the end of​ (1) 6 ​            years, (2) 12 years, and​ (3)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT