Five years from today, you would like to withdraw $5,000 from an account that pays an...
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
Homework Answers
Let the amount to be invested today be X and rate of interest 5% per year and n = 5years
Initial deposit (1+rate of interest)n = Future Value
X (1+5%)5 = 5,000
X = 5000 /1.2762815625
X = 3,917.63 ( Amount to be deposited in the beginning)
( If you have any query, please comment, I will get back to you)
Add Answer to:
Five years from today, you would like to withdraw $5,000 from an
account that pays an...
How much should you deposit today in order to withdraw $5,000 each year for 7 years?...
How much should you deposit today in order to withdraw $5,000 each year for 7 years? Your first withdraw will start 5 years from now and your deposit will earn 4% interest.
Derek wants to withdraw $12,560.00 from his account 5.00 years from today and $12,875.00 from his...
Derek wants to withdraw $12,560.00 from his account 5.00 years from today and $12,875.00 from his account 15.00 years from today. He currently has $2,845.00 in the account. How much must he deposit each year for the next 15.0 years? Assume a 5.02% interest rate. His account must equal zero by year 15.0 but may be negative prior to that. Submit Answer format: Currency: Round to: 2 decimal places. Derek currently has $14,502.00 in an account that pays 5.00%. He...
Q3. Consider the following capital market. You want to be able to withdraw 1$150K five years...
Q3. Consider the following capital market. You want to be able to withdraw 1$150K five years from today in order to pay for your entire graduate school education. (a) If you can earn a 4.29% rate ofreturnper year, how much do you need to invest today? (b) If you can earn 4.21%olyear, how much do you need to invest one year from today? (c) If you can earn 4.2%/year, how much must you deposit at the end of each year...
How much money would you have to deposit today in order to have $5,000 in five...
How much money would you have to deposit today in order to have $5,000 in five years if the discount rate is 10 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
REQUIRED LUMP SUM PAYMENT Starting next year, you will need $5,000 annually for 4 years to...
REQUIRED LUMP SUM PAYMENT Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $5,000 payments. How large must the deposit be? Round your answer to the nearest cent. $ How much will be in the account immediately after you make the first withdrawal? Round your answer...
You would like to purchase a delayed perpetuity, which pays $2400 every year. You would like...
You would like to purchase a delayed perpetuity, which pays $2400 every year. You would like this perpetuity to start 27 years later. The asset requires you to make the same deposit every year starting from today and end a year before the perpetuity starts. How much is the deposit every year? The interest rate is at 9%. (Round to Integer)
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next...
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...
Suppose you need to have $52,938.00 in an account 18.00 years from today and that the...
Suppose you need to have $52,938.00 in an account 18.00 years from today and that the account pays 15.00%. How much do you have to deposit into the account 8.00 years from today? Suppose you deposit $1,773.00 into and account 4.00 years from today into an account that earns 14.00%. How much will the account be worth 18.00 years from today? Assume the nominal rate of return is 9.93% and the real rate is 2.96%. Find the inflation rate of...
Question (3) Mary made five annual deposits of $6,000 in a savings account that pays interest...
Question (3) Mary made five annual deposits of $6,000 in a savings account that pays interest at a rate of 6% per year. One year after making the last deposit, the interest rate changed to 10% per year. Five years after the last deposit, how much accumulated money can she withdraw from the account?
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual...
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual (stated) rate is 4% on the CD and it is compounded quarterly. Rates have increased and you are considering reinvesting in another certificate of deposit. However, if you withdraw the money from the original CD, you suffer a 10% penalty on the entire balance (interest and principal): a. If you make the withdrawal today, how much would you have remaining? (8 Points)
Derek wants to withdraw $12,560.00 from his account 5.00 years from today and $12,875.00 from his account 15.00 years from today. He currently has $2,845.00 in the account. How much must he deposit each year for the next 15.0 years? Assume a 5.02% interest rate. His account must equal zero by year 15.0 but may be negative prior to that. Submit Answer format: Currency: Round to: 2 decimal places. Derek currently has $14,502.00 in an account that pays 5.00%. He...
Q3. Consider the following capital market. You want to be able to withdraw 1$150K five years from today in order to pay for your entire graduate school education. (a) If you can earn a 4.29% rate ofreturnper year, how much do you need to invest today? (b) If you can earn 4.21%olyear, how much do you need to invest one year from today? (c) If you can earn 4.2%/year, how much must you deposit at the end of each year...
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. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual (stated) rate is 4% on the CD and it is compounded quarterly. Rates have increased and you are considering reinvesting in another certificate of deposit. However, if you withdraw the money from the original CD, you suffer a 10% penalty on the entire balance (interest and principal): a. If you make the withdrawal today, how much would you have remaining? (8 Points)
Most questions answered within 3 hours.
-
The Problem: The Case of the Harmonizing Vacations
Your CEO is exploring partnering with a European...
asked 46 seconds ago -
A chemical equation is balanced by adding coefficients in front
of some formulas so that the...
asked 24 seconds from now -
From the literature (reference your sources): What are the
lattice parameters of calcite and aragonite? Why...
asked 39 minutes ago -
Your system is rejecting the question am asking which is
preceded by a case study. It...
asked 43 minutes ago -
3. On January 2, 2000, Larry creates a trust with himself as
trustee. Larry as trustee...
asked 41 minutes ago -
A member of the volleyball team spikes the ball. During this
process, she changes the velocity...
asked 48 minutes ago -
Are adult gamers less likely to use a gaming console (Xbox,
PlayStation, Wii, etc...) than teen...
asked 1 hour ago -
The University of
Texas recently reported that 43% of college students aged 18-24
would spend their...
asked 1 hour ago -
The length of stay at a specific emergency department in
Phoenix, Arizona, in 2009 had a...
asked 1 hour ago -
. Please give the mechanism for this type of problem. Step by
Step
The toxin that...
asked 1 hour ago -
If you have a 1M stock solution and you want to dilute 1 :10
with water,...
asked 1 hour ago -
In a load instruction, the effective address is obtained by
A) Retriving the address from a...
asked 1 hour ago