3. Suppose you have money invested in a savings monthly. You also make a deposit of D dollars once each month, and you...
Suppose you want to deposit a certain amount of money into a savings account and then leave it alone to draw interest for the next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you need to deposit today make that happen? You can use the following formula, which is known as the present value formula, to find out: P = F / (1+ r)^n The terms in...
Question 9: (2 points) Suppose you have $600 to invest in a savings plan, and you want to compare 4 could invest the money. Find the balance after one year if you deposit all the money into an account that interest each month (this is a simple interest equation where the amount of inte each month). Round answers to the nearest cent Find the balance after one year if you deposit all the money into an account that monthly compounding...
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...
Suppose you have a certain amount of money in a savings account that earns compound monthly interest, and you want to calculate the amount that you will have after a specific number of months. The formula is as follows: f = p * (1 + i)^t • f is the future value of the account after the specified time period. • p is the present value of the account. • i is the monthly interest rate. • t is the...
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the end of each month for five years. How much can be withdrawn at the end of five years, a) If your savings account earns 10% interest compounded monthly? b) If your savings account earns 10% interest compounded daily?
P5.3 Present Value. Suppose you want to deposit a certain amount of money into a savings account and then leave it alone to draw interest for the next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you need to deposit today tomake that happen? You can use the following formula, which is known as the present value formula, to find out: P = F/(1+r)^n The terms in the...
Suppose a recent college graduate's first job allows her to deposit $250 at the end of each month in a savings plan that earns 9%, compounded monthly. This savings plan continues for 13 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 28 years after the plan began? (Round your answer to the nearest cent.)
1. You deposit $400 each month into an account earning 7% interest compounded monthly. a) How much will you have in the account in 35 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $ 2. Suppose you want to have $300,000 for retirement in 35 years. Your account earns 8% interest. a) How much would you need to deposit in the account each month? $ b)...
Suppose that at the end of each month you deposit $434.1 into a retirement account that earns 9.9% APR. If your account started out at zero and you make deposits for 25 years, what will your account balance be after your last payment?
Suppose that at the end of each month you deposit $341.12 into a retirement account that earns 10.7% APR. If your account started out at zero and you make deposits for 33 years, what will your account balance be after your last payment?