ZuoTi.Pro
Question

If you deposit $2400 at the end of each of the next 25 years and these...

If you deposit $2400 at the end of each of the next 25 years and these deposits earn interest at 10 percent compounded annually, what will the series of deposits be worth at the end of the 25th year?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Future value of annuity=Annuity[(1+rate)^time period-1]/rate

=$2400[(1.1)^25-1]/0.1

=$2400*98.34705943

which is equal to

=$236,032.94(Approx).

0 0
Add a comment
Know the answer?
Add Answer to:
If you deposit $2400 at the end of each of the next 25 years and these...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • You deposit $5,000 per year at the end of each of the next 25 years into...

    You deposit $5,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually. How much could you withdraw at the end of each of the 20 years following your last deposit if all withdrawals are the same dollar amount? (The twenty-fifth and last deposit is made at the beginning of the 20-year period. the first withdrawal is made at the end of the first year in the 20-year period. A....

  • 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...

  • If you deposit $4,800 at the end of each of the next 15 years into an...

    If you deposit $4,800 at the end of each of the next 15 years into an account paying 11.3 percent interest, how much money will you have in the account in 15 years? How much will you have if you make deposits for 30 years?

  • You deposit $12,000 annually into a life insurance fund for the next 30 years, after which...

    You deposit $12,000 annually into a life insurance fund for the next 30 years, after which time you plan to retire. (LG 15-2) If the deposits are made at the beginning of the year and earn an interest rate of 7 percent, what will be the amount of retirement funds at the end of year 30? Instead of a lump sum, you wish to receive annuities for the next 20 years (years 31 through 50). What is the constant annual...

  • If you deposit $5,000 at the end of each year for the next 20 years into...

    If you deposit $5,000 at the end of each year for the next 20 years into an account paying 10.1% interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years?

  • If you deposit $5030 at the end of each of the next 10 years into an...

    If you deposit $5030 at the end of each of the next 10 years into an account paying 7.8 percent interest, how much money will you have in the account in 10 years?

  • 1. You would like to save $70 000 in 10 years. To accumulate this amount, you...

    1. You would like to save $70 000 in 10 years. To accumulate this amount, you plan to make a regular deposit with an equal amount of cash into a saving account at the end of each year. This account will earn 6% p.a interest compounded annually. Your first payment will be made at the end of this year. a. How much must you deposit annually to accumulate this amount in 10 years? b. If you decide to make a...

  • 1. 2. You plan to make annual end-of-year deposits of $3,000 for the next 10 years...

    1. 2. You plan to make annual end-of-year deposits of $3,000 for the next 10 years followed by a final deposit of $11,000 at the end of year 11. The deposits earn interest of 4.0%. What will the account balance be by the end of 17 years? Round to the nearest cent. Numeric Answer: If $1,000 is invested in an account earning 6% interest compounded quarterly for 5 years, what is the periodic interest rate (i/m)? Provide the answer in...

  • You expect to receive $1,000 at the end of each of the next 3 years. You...

    You expect to receive $1,000 at the end of each of the next 3 years. You will deposit these payments into an account that pays 12 percent compounded annually. What is the future value of these payments, that is, the value at the end of the third year? a. $3,000.00 b. $3,310.00 c. $3,374.40 d. $3,400.96 e. $3,438.27

  • You plan to deposit $6,100 at the end of each of the next 15 years into...

    You plan to deposit $6,100 at the end of each of the next 15 years into an account paying 11.3 percent interest. a. How much will you have in your account if you make deposits for 15 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 30 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.,...

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