oshua Kelly estimates that taking some classes would result in earning $13,400 more a year for the next 30 years. Based on an annual interest rate of 9 percent, calculate the future value of these classes. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)
Future value = Annuity * [(1 + r)n - 1]/r
Future value = 13,400 * [(1 + 0.09)30 - 1]/ 0.09
Future value = 13,400 * 136.307539
Future value = $1,826,521.02
oshua Kelly estimates that taking some classes would result in earning $13,400 more a year for the next 30 years. Based...
Jenny Lopez estimates that as a result of completing her master’s degree, she will earn an additional $10,000 a year for the next 30 years. (a) What would be the total amount of these additional earnings? (b) What would be the future value of these additional earnings based on an annual interest rate of 8 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)
Tran Lee plans to set aside $3,200 a year for the next six years, earning 5 percent. What would be the future value of this savings amount? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) ® Answer is complete but not entirely correct. Future value $ 30,557.15
Return to que 7. Jenny Lopez estimates that as a result of completing her master's degree, she will earn an additional $8,000 a year for the next 40 years (a) What would be the total amount of these additional earnings? 10 points Answer is complete but not entirely correct. Additional earnings s 160,000 (b) What would be the future value of these additional earnings based on an annual interest rate of 6 percent? Use Exhibit 1-8. (Round time value factor...
If a person spends $20 a week on coffee (assume $1,000 a year), what would be the future value of that amount over 15 years if the funds were deposited in an account earning 2 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) future value=
33.33 A financial company advertises on television that they will pay you $75,000 now in exchange for annual payments of $12,500 that you are expected to receive for a legal settlement over the next 12 years. You estimate the time value of money at 10 percent. Would you except this offer? 33.32 If a person spends $15 a week on coffee (assume $750 a year), what would be the future value of that amount over 9 years if the funds...
(b) The future value of $1,200 saved each year for 10 years at 6 percent. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value (c) The amount a person would have to deposit today (present value) at an Interest rate of 6 percent to have $1,200 five years from now. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Present value (d) The amount a person...
(b) The future value of $900 saved each year for 10 years at 7 percent. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future valueſ (c) The amount a person would have to deposit today (present value) at an interest rate of 8 percent to have $1,000 five years from now. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Present value (d) The amount a person...
If a person spends $20 a week on coffee (assume $1,000 a year), what would be the future value of that amount over 7 years if the funds were deposited in an account earning 3 percent? Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.)
Problem 2-13 (LO2.4) Brenda plans to reduce her spending by $90 a month. What would be the future value of this reduced spending over the next 10 years? (Assume an annual deposit to her savings account, and interest rate of 4 percent.) Use Exhibit 1.B. (Round time value factor to 3 decimal places and final an annual answer to 2 decimal places.) Future value
Calculate the future value of a retirement account in which you deposit $3,000 a year for 40 years with an annual interest rate of 8 percent. Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to the nearest whole number.)