You wish to deposit a sum of money now into an account that earns 8% to...
You wish to deposit a sum of money now into an account that earns 8% to pay for the next 5
years of out-of-state tuition in order to obtain a combined bachelors and masters degree. The
annual expenses are currently $22,000. The inflation rate is 5% per year. Calculate how much
you need to deposit now in actual and real dollars.
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You wish to deposit a sum of money now into an account that
earns 8% to...
Question 4 (8 pts): Suppose that you deposit $12,000 in a savings account that earns 7% in annually. Inflation is 2...
Question 4 (8 pts): Suppose that you deposit $12,000 in a savings account that earns 7% in annually. Inflation is 2.5%. a) What is the real interest rate? (2 pts) 5) How much money is in your account at the end of the year? (In nominal amount) (3 pt - What is the real purchasing power of that amount? (In real amount) (3 pts)
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...
Time for a lump sum to double If you deposit money today in an account that...
Time for a lump sum to double If you deposit money today in an account that pays 14.5% annual interest, how long will it take to double your money? Round your answer to two decimal places.
TIME FOR A LUMP SUM TO DOUBLE If you deposit money today in an account that...
TIME FOR A LUMP SUM TO DOUBLE If you deposit money today in an account that pays 10.5% annual interest, how long will it take to double your money? Round your answer to two decimal places.
Problem 1- Saving Money You want to deposit money into a bank account that pays 1.5%...
Problem 1- Saving Money You want to deposit money into a bank account that pays 1.5% compounded monthly. Answer the following questions: f depositing $4000, how much is avaiable in the account at the end of S years? .How much do you have to deposit now in order to have $5000 available at the end of 5 years? Instead of depositing one sum of money at the beginning of the 5-year period, suppose you wish to make monthly payments. How...
You plan to make a lump-sum deposit of $6000 now into an investment account that pays...
You plan to make a lump-sum deposit of $6000 now into an investment account that pays 8% per year, and you plan to withdraw an equal end-of-year amount of $1000 for 6 years, starting next year. At the end of the sixth year, you plan to close your account by withdrawing the remaining money. Define the engineering economy symbols involved.
Assume you just deposited $1,000 into a bank account. The interest rate on your deposit is...
Assume you just deposited $1,000 into a bank account. The interest rate on your deposit is 6% and inflation is expected to be 2% over the next year. What is the real interest rate you expect to earn on your deposit over the next year? How much money will you have on deposit at the end of one year? If you are saving to buy a new smartphone that currently sells for $1,050, will you have enough money to buy...
1. How much would you need to deposit in an account now in order to have $5000 in the account in 15 years? Assume the ac...
1. How much would you need to deposit in an account now in order to have $5000 in the account in 15 years? Assume the account earns 5% interest compounded monthly. 2. You currently have $7,700 (Present Value) in an account that has an interest rate of 3% per year compounded quarterly (4 times per year). You want to withdraw all your money when it reaches $18,480 (Future Value). In how many years will you be able to withdraw all...
Let’s assume that you’re preparing for your (future) child (or grandchild)’s college education. 20 years later...
Let’s assume that you’re preparing for your (future) child (or grandchild)’s college education. 20 years later from now, your (future) child will go to college. Currently you’re considering two colleges for your (future) child (or grandchild). The following is the list of universities I assigned to each of you. Student University 1 University 2 Holliday, Carshawn B Harvard University Vanderbilt University Estimate future costs of two colleges for your (future) child (or grandchild) and calculate needed annual savings for two...
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)...
Question 4 (8 pts): Suppose that you deposit $12,000 in a savings account that earns 7% in annually. Inflation is 2.5%. a) What is the real interest rate? (2 pts) 5) How much money is in your account at the end of the year? (In nominal amount) (3 pt - What is the real purchasing power of that amount? (In real amount) (3 pts)
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...
Problem 1- Saving Money You want to deposit money into a bank account that pays 1.5% compounded monthly. Answer the following questions: f depositing $4000, how much is avaiable in the account at the end of S years? .How much do you have to deposit now in order to have $5000 available at the end of 5 years? Instead of depositing one sum of money at the beginning of the 5-year period, suppose you wish to make monthly payments. How...
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