1) | FVA = 15000*(1.1^20-1)/(0.1*1.1^20) = | $ 1,27,703.46 |
2) | FV of the amount of 10000 in hand = 10000*(1+0.04/12)^60 = | $ 12,209.97 |
Balance to be accumulated to reach $15000 = 15000-12209.97 = | $ 2,790.03 | |
The amount of $2790.03 is the FV of the monthly payments to be | ||
made. Using the formula for finding FV of annuity, | ||
the monthly installments to be paid = 2790.03*(0.04/12)*(1+0.04/12)^60/((1+0.04/12)^60-1)) = | $ 51.38 | |
3) | The weekly interest = 0.035/52 | |
Equating the required values, | ||
PV*3=PV*(1+0.035/52)^n, where n = number of weeks. | ||
Solving for n | ||
3 = (1+0.035/52)^n | ||
Taking log of both sides | ||
log3 = n*log1.0006730 | ||
n = log3/log1.0006730 | ||
n = 0.47712125472/0.00029218187814 = 1632.96 weeks | ||
= 1632.96/52 = 31.40 years | ||
Number of years for the deposit to triple in value = | 31.40 years |
1. Compute the Future Value of a 20-year annuity that pays $15,000 per year. Assume an...
19. (Calculating the future value of an annuity) Find the future value of an annuity that pays €8,000 a year for 10 years at 6 percent compounded annually. What will be the future value if it was compounded at 10 percent?
Determine the accumulated value of an annuity that pays $100 at the end of each month for 10 years. The interest rate is 3% compounded annually. OA) 6799.03 OB) 13944.80 OC) 231786.90 OD) 12328.45 Question 2 (3 points) A couple wants to accumulate $10000. If they deposit $250 at the end of each quarter into an account paying 6% compounded quarterly, how many deposits must they make? 29.43 29.00 36.98 31.57
1. Calculate the accumulated value of an ordinary annuity of $4,200 a year for 6 years if the money is worth 71 2 %. 2. Find the future value of the cash flow of $600 a month for 5 years at 9% interest compounded monthly. 3. If Gabe makes a $450 deposit into his savings fund at the end of each quarter for 6 years, how much will he be able to collect at the end of the sixth year...
What is the present value of an annuity that pays $352 at the beginning of each year for 47 years if the annuity earns 12% annually? An account pays 2% annual interest compounded monthly. What is the effective interest rate on this account? If you deposit some money into a bank account today, to the nearest year, how long will it take to triple your deposit if it earns 11% annually? What is the present value of an annuity that...
Problem 5-1 Future Value (LG5-1) Compute the future value in year 7 of a $2,200 deposit in year 1, and another $1700 deposit at the end of year 4 using a 8 percent interest rate (Do not round intermediate calculations and round your final answer to 2 decimal places.) Problem 4 and 5-6 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $4,200 living room set with three years before you need to make...
Find the future value of the ordinary annuity rounded to the nearest cent. If Bob deposits $5000 at the end of each year for 9 years in an account paying 6% interest compounded annually, find the amount he will have on deposit.
8.4.19 Question Help • the future A The yearly interes t and the time in years are given below. Interest is compounded monthly Find the monthly payment needed to have a sinking lund sound A- $3.000 7.5% = 3 RES (Round up to the nearest cent) 8.4.37 Question Help Kristy Joe deposits $190 each month in an ordinary annuity to save for a new car. If the annuity pays a monthly interest rate of 0.89% how much will she be...
1.Future Value: Ordinary Annuity versus Annuity Due What is the future value of a 3%, 5-year ordinary annuity that pays $250 each year? Round your answer to the nearest cent. $ If this were an annuity due, what would its future value be? Round your answer to the nearest cent. $ 2. Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the...
Future Value Compute the future value in year 8 of a $350 deposit in year 3 and another $150 deposit at the end of year 5 using a 10% interest rate. Future Value of an Annuity What is the future value of a $1,700 annuity payment over 10 years if the interest rates are 9 percent? Present Value of a Perpetuity What's the present value, when interest rates are 6.80 percent, of a $130 payment made every year forever? Future...
An annuity pays $ 54 per year for 20 years. What is the future value (FV) of this annuity at the end of those 20 years, given that the discount rate is 5%?