Suppose I have an annual gross income of $60,000. I want to invest 8% each month and my employer will match 4%. Liberty Mutual offers 3% annual interest compounded monthly. (14) How much money will be...
Suppose I have an annual gross income of $60,000. I want to invest 8% each month and my employer will match 4%. Liberty Mutual offers 3% annual interest compounded monthly. (14) How much money will be invested each month? (15) Now, in January the first investment is made with the amount you found in #14. How much is in the account at the end of 1 year based on this initial investment? (16) In February, a second investment is made of the same amount you found in #14. How much money is in the account at the end of 11 months based on this investment? (17) In March, a third investment is made of the same amount you found in #14. How much money is in the account at the end of 10 months based on this investment? (18) Now…when the end of the year comes, how much is in my account SOLELY based on these 3 monthly investments?
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Suppose I have an annual gross income of $60,000. I want to invest 8% each month and my employer will match 4%. Liberty Mutual offers 3% annual interest compounded monthly. (14) How much money will be...
How much should I invest today in a bank account that offers an annual interest rate...
How much should I invest today in a bank account that offers an annual interest rate of a 12% compounded monthly, in order to be able to afford infinite monthly payments, the first one of them to be of 200 €, and the amount of the further payments increasing in a 0.2% month after month?
Assume an interest rate of 5.70% compounded monthly. a. How much money do you need to...
Assume an interest rate of 5.70% compounded monthly. a. How much money do you need to invest to receive $1,200 at the end of each month for 11 months? $0.00 Round to the nearest cent b. If you would like your payments to last you 19 months, how much less would you have to receive at the end of each month if you invested the same amount as above?
I invest a large sum of money into an account that gives 3.5% annual interest compounded...
I invest a large sum of money into an account that gives 3.5% annual interest compounded monthly. I leave the money in the account for 20 years. At the end of the 20 years I now have $420,300. How much did I originally invest?
If you want to have $87654 in the bank at the end of 10 years and you get a 3% interest rate per year. How much money do you need to deposit each month if a) monthly compounding? b) semi-annual compou...
If you want to have $87654 in the bank at the end of 10 years and you get a 3% interest rate per year. How much money do you need to deposit each month if a) monthly compounding? b) semi-annual compounding? c) quarterly compounding? d) daily compounding?
lets suppose, My initial investment is 5,00,000 Rs and I invest 1,00,000 rs per month ....
lets suppose, My initial investment is 5,00,000 Rs and I invest 1,00,000 rs per month . My investment earns 10 percent P. A. and after 3 year I increased my investment to 2,00,000 per month. and the intrest rate or return is same 10 percent per annum. After 6 years i startes to invest 3,00,000 rs per month and intrest rate or return is same. after 10 year i startes to invest 10,00,000 rs per month and intrest remains same....
Assuming you have had $55,000 balance in your 401k account and your annual salary is $50,000,...
Assuming you have had $55,000 balance in your 401k account and your annual salary is $50,000, suppose from now on your employer will match your deposit in your 401k plan but the amount of match money will be capped by 6% of your salary. If you decide to input 8% of your salary in your 401k plan each month and expect to make 10% return, compounded monthly, at time when you retire, how much money will you have in your...
The good news is that SAVING uses the same geometric series formula as BORROWING money! Assume you deposit $10 per month into a savings account with an annual interest rate of 30%, compounded monthly...
The good news is that SAVING uses the same geometric series formula as BORROWING money! Assume you deposit $10 per month into a savings account with an annual interest rate of 30%, compounded monthly (a) Sketch the graph representing the amount that you've DEPOSITED into the account after r years. Hint: you can determine this formula and graph the function easily.) (b) In another color, copy your graph of f (r) from the previous slide. This is the total amount...
1. Suppose you invest $3,600 in an account bearing interest at the rate of 14 percent...
1. Suppose you invest $3,600 in an account bearing interest at the rate of 14 percent per year. What will be the future value of your investment in five years? 2. Your best friend won the state lottery and has offered to give you $11,100 in five years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 12 percent annual interest. What is the present value of...
Assuming you have had $55,000 balance in your 401k account and your annual salary is $50,000,...
Assuming you have had $55,000 balance in your 401k account and your annual salary is $50,000, suppose from now on your employer will match your deposit in your 401k plan but the amount of match money will be capped by 6% of your salary. If you decide to input 8% of your salary in your 401k plan each month and expect to make 10% return, compounded monthly, at time when you retire, how much money will you have in your...
3. How much money will Mr. & Mrs. Ahmad have to deposit per month to allow...
3. How much money will Mr. & Mrs. Ahmad have to deposit per month to allow Abdullah to attend American University? How much money will have to be deposited per month to allow Abdullah to attend the British University? (HINT: To answer this question you need to consider the costs of ALL four years.) 4. What is the relationship between the amount that must be deposited monthly by the parents and the future increases in both tuition and living expenses?...
Assume an interest rate of 5.70% compounded monthly. a. How much money do you need to invest to receive $1,200 at the end of each month for 11 months? $0.00 Round to the nearest cent b. If you would like your payments to last you 19 months, how much less would you have to receive at the end of each month if you invested the same amount as above?
I invest a large sum of money into an account that gives 3.5% annual interest compounded monthly. I leave the money in the account for 20 years. At the end of the 20 years I now have $420,300. How much did I originally invest?
The good news is that SAVING uses the same geometric series formula as BORROWING money! Assume you deposit $10 per month into a savings account with an annual interest rate of 30%, compounded monthly (a) Sketch the graph representing the amount that you've DEPOSITED into the account after r years. Hint: you can determine this formula and graph the function easily.) (b) In another color, copy your graph of f (r) from the previous slide. This is the total amount...
1. Suppose you invest $3,600 in an account bearing interest at the rate of 14 percent per year. What will be the future value of your investment in five years? 2. Your best friend won the state lottery and has offered to give you $11,100 in five years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 12 percent annual interest. What is the present value of...
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