Assume you are planning to invest $5,000 each year for six years and will earn 10...
Assume you are planning to invest $5,000 each year for six years and will earn 10 percent per year. Determine the future value of this annuity if your first $5,000 is invested at the end of the first year.
$38,480 $38,580 $34,580 $35,840
Homework Answers
| This is an example of an ordinary annuity because | |||||
| the payments occur at the end of each year. | |||||
| The formula for future value of an ordinary annuity is: | |||||
| Future value of an annuity = C[((1+r)^t-1)/r] | |||||
| where C is the annuity payment that is 5000. | |||||
| r is the interest rate that is 10%. | |||||
| t is the year that is 6. | |||||
| Future value = 5000*[((1.10)^6-1)/.10] | |||||
| Future value = 5000*[(1.771561-1)/.10] | |||||
| Future value = 5000*[(.771561)/.10] | |||||
| Future value = 5000*[(7.71561)] | |||||
| Future value = 38578.05 | |||||
| The future value of this annuity is | |||||
| $38580. | |||||
Add Answer to:
Assume you are planning to invest $5,000 each year for six years
and will earn 10...
If you invest $5,000 annually for the next 20 years and earn 9% per year (20...
If you invest $5,000 annually for the next 20 years and earn 9% per year (20 deposits, annuity, AER rate) . . A. How much will you have at the end of the 20th year (T20), if the first deposit is 1 year from now (at T1) ? B. How much will you have at the end of the 20th year, if the first deposit is made immediately (at T0) ?
Assume you are 25 and earn $32,900 per year, never expect to receive a raise, and...
Assume you are 25 and earn $32,900 per year, never expect to receive a raise, and plan to retire at age 55. If you invest 5 percent of your salary in a 401(k) plan returning 11 percent annually, and the company provides a $0.50 per $1.00 match on your contributions up to 3 percent of salary, what is the estimated future value of your 401(k) account? Once you retire, how much can you withdraw monthly if you want to deplet...
Assume you are 25 and earn $37,000 per year, never expect to receive a raise, and...
Assume you are 25 and earn $37,000 per year, never expect to receive a raise, and plan to retire at age 55. If you invest 5 percent of your salary in a 401(k) plan returning 11 percent annually, and the company provides a $0.50 per $1.00 match on your contributions up to 3 percent of salary, what is the estimated future value of your 401(k) account? Once you retire, how much can you withdraw monthly if you want to deplete...
Rose Arapahoe is planning to invest $3,000 per year for the next 6 years (a total...
Rose Arapahoe is planning to invest $3,000 per year for the next 6 years (a total of 6 payments). Investments can earn 10% per year. How much money will Rose Arapahoe have at the end of six years if she made her first investment now and the remaining investments at one-year intervals? $17,800 $18,530 O $21.269 $25,462 $28,590
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has...
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months...
2] Assume instead an annuity of $2,500 (which means you will invest $2,500 per year which...
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 - and this variable is the "payment".) a) 5 years b) 10 years
1) You receive $5,000 at the end of every year for three years. What is the...
1) You receive $5,000 at the end of every year for three years. What is the present value of these receipts if you earn eight percent compounded annually 2)What amount will be accumulated in four years if $10,000 is invested today at six percent interest compounded annually?
Assume you have a future liability of $16,000 per year for four years beginning six years...
Assume you have a future liability of $16,000 per year for four years beginning six years from today. You will fund this liability over the next five years, with the first deposit to occur one year from today. If you earn 5% on this account annually, how much will you have to deposit at the end of each of the next five years to fund this liability?
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...
8. You plan to retire in 35 years and can invest to earn 6.85 percent. You...
8. You plan to retire in 35 years and can invest to earn 6.85 percent. You estimate that you will need $82,000 at the end of each year for an estimated 30 years after retirement, and you expect to earn 4.5 percent during those retirement years. How much do you need to set aside at the end of each year to accumulate the money necessary for your retirement? (Assume year-end cash flows.) I will need this much at retirement _____________and...
Assume you are 25 and earn $32,900 per year, never expect to receive a raise, and plan to retire at age 55. If you invest 5 percent of your salary in a 401(k) plan returning 11 percent annually, and the company provides a $0.50 per $1.00 match on your contributions up to 3 percent of salary, what is the estimated future value of your 401(k) account? Once you retire, how much can you withdraw monthly if you want to deplet...
Assume you are 25 and earn $37,000 per year, never expect to receive a raise, and plan to retire at age 55. If you invest 5 percent of your salary in a 401(k) plan returning 11 percent annually, and the company provides a $0.50 per $1.00 match on your contributions up to 3 percent of salary, what is the estimated future value of your 401(k) account? Once you retire, how much can you withdraw monthly if you want to deplete...
Rose Arapahoe is planning to invest $3,000 per year for the next 6 years (a total of 6 payments). Investments can earn 10% per year. How much money will Rose Arapahoe have at the end of six years if she made her first investment now and the remaining investments at one-year intervals? $17,800 $18,530 O $21.269 $25,462 $28,590
You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year O An annuity that pays $500 at the end of every six months O An annuity that pays $1,000 at the beginning of each year O An annuity that pays $500 at the beginning of every six months...
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 - and this variable is the "payment".) a) 5 years b) 10 years
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.
-
How high must a pointed arch be if it is to span a
space 4.2 m...
asked 3 minutes ago -
A housepainter who weighs 750 N stands 0.6 m from one end of a
2.0 m...
asked 5 minutes ago -
Implement Singly Linked List detectLoop in Java.
It would check whether the linked list contains a...
asked 8 minutes ago -
A small mailbag is released from a helicopter that is descending
steadily at 2.10 m/s.
After...
asked 9 minutes ago -
Write a C – program that calls a user-defined function from
within main() that determines the...
asked 12 minutes ago -
For a 2-Level design, with 8 factors, a recommended screening
design model is:
a. Taguchi L12...
asked 53 minutes ago -
1. Define a function in python that returns the sum of the
following 4 lists. Remember...
asked 44 minutes ago -
Elspeth, associate research specialist for a marketing research
firm in a large Midwestern city, had just...
asked 43 minutes ago -
If domestic savings are insufficient to finance domestic private
investment and exports are greater than imports,...
asked 59 minutes ago -
Q.4.
Use the format in Exhibit 9-1 to compute the ending LIFO
inventory and cost of...
asked 1 hour ago -
Discuss the different receiving and dispatch equipment required
for uploading and loading different types of material...
asked 1 hour ago -
Which of the following is true for simultaneous testing?
a. Net specificity is greater than the...
asked 1 hour ago