Q4. The current value of her retirement fund is computed as shown below:
= $ 12,000 / 1.061 + $ 12,000 / 1.062 + $ 12,000 / 1.063 + $ 12,000 / 1.064 + $ 12,000 / 1.065 + $ 12,000 / 1.066 + $ 12,000 / 1.067 + $ 12,000 / 1.068 + $ 12,000 / 1.069 + $ 12,000 / 1.0610 + $ 12,000 / 1.0611 + $ 12,000 / 1.0612 + $ 12,000 / 1.0613 + $ 12,000 / 1.0614 + $ 12,000 / 1.0615 + $ 12,000 / 1.0616 + $ 12,000 / 1.0617 + $ 12,000 / 1.0618 + $ 12,000 / 1.0619 + $ 12,000 / 1.0620
= $ 137,639.05 Approximately
Feel free to ask in case of any query relating to this question
I need help on question 4. Time Value of Money Exercise: Question 1: Assume you deposit $700 every three months at erce...
I need help on question 10. Time Value of Money Exercise: Question 1: Assume you deposit $700 every three months at ercent annual rate, compounded $700 every three months at a 6 percent am much will you have at the end of 20 years? Question 2: You borrow a five-year $13.000 loan with monthly percentage rate (APR) on the loan? 3,000 loan with monthly payments of $250. What is the annual Question 3: How much would you have to invest...
I need help on question 3. Time Value of Money Exercise: Question 1: Assume you deposit $700 every three months at ercent annual rate, compounded $700 every three months at a 6 percent am much will you have at the end of 20 years? Question 2: You borrow a five-year $13.000 loan with monthly percentage rate (APR) on the loan? 3,000 loan with monthly payments of $250. What is the annual Question 3: How much would you have to invest...
I need help on question 7. Time Value of Money Exercise: Question 1: Assume you deposit $700 every three months at ercent annual rate, compounded $700 every three months at a 6 percent am much will you have at the end of 20 years? Question 2: You borrow a five-year $13.000 loan with monthly percentage rate (APR) on the loan? 3,000 loan with monthly payments of $250. What is the annual Question 3: How much would you have to invest...
I need help on question 8. Time Value of Money Exercise: Question 1: Assume you deposit $700 every three months at ercent annual rate, compounded $700 every three months at a 6 percent am much will you have at the end of 20 years? Question 2: You borrow a five-year $13.000 loan with monthly percentage rate (APR) on the loan? 3,000 loan with monthly payments of $250. What is the annual Question 3: How much would you have to invest...
I need help on question 9. 20 Time Value of Money Exercise: Question 1: Assume you deposit $700 every three months at a 6 percent annual rate, compounded quarterly. How much will you have at the end of 20 years? Question 2 You borrow a five-year $13,000 loan with monthly payments of $250. What is the annual percentage rate (APR) on the loan? Question 3: How much would you have to invest today to receive $50,000 in 10 years at...
I need help on question 2. MODULE IV: TIME VALUE OF MONEY INTRODUCTION The time value of money analysis has many a lysis has many applications, ranging from setting hedules for paying off loans to decisions about whether to invest in a partie financial instrument. First, let's define the following notations: I = the interest rate per period Na the total number of payment periods in an annuity PMT = the annuity payment made each period PV = present value...
Time Value of Money Spreadsheet Example 4 Module IV Name: Date: 6 7 8 Question 1 9 Question 2 10 Question 3 11 Question 4 12 Question 5 13 Question 6 14 Question 7 15 Question 8 16 Question 9 17 Question 10 18 19 20 Single Amount or Annuity 21 Periodic Interest Rate 22 Number of Periods 23 24 25 Present Value of Single Amount 26 27 Future Value of Single Amount 28 29 Future Value of An Annuity...
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
Assignment (Time Value of Money) 1. What is the selling price today of a bond with a face value of $100,000,4% coupon paid annually and maturity of 10 years if market interest rates are: b. 6% c. 2% 2. In exchange for a $20,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table, your opportunity cost is 11% Alternative Single Amount $28,000 at the end of 3 years $54,000 at...
To save for retirement, you deposit $8,592.06 at the end of every 6 months. If you make these payments for the next 44 years while you work, and the interest rate is 12.03%, how much will you have in your retirement account when you go to retire? That is, immeidately after the last payment is made Answer = Cash Flow = r = n =