Future Value = 1,500(1.04)4 + 1,800(1.04)3 + 2,100(1.04)2 + 2,400(1.04) + 2,700
Future Value = $11,246.90
Question 4 (a) Mr Keegan is aware of the high cost of retirement in Singapore and plans to save more as his income grow...
Julio is planning to save for his newborn daughter's college tuition, to be paid in 18 years. The amount he wishes to have by that time is $65,000. He plans to deposit $2,500 in a bank account every year for 18 years, starting next year. Suppose the account pays 2% interest on deposits, compounded annually. How much would he need to deposit right now, to make up the remaining amount necessary by the end of 18 years?
In an effort to save money for early retirement, an environmental engineering colleague plans to deposit $4600 per month, starting one month from now, into a fixed account that pays 4% per year compounded quarterly. How much will be in the account at the end of 7 years? Assume no inter-period interest earned
Your best friend Frank just celebrated his 30th birthday and wants to start saving for his anticipated retirement. Frank plans to retire in 35 years and believes that he will have 20 good years of retirement and believes that if he can withdraw $90,000 at the end of each year, he can enjoy his retirement. Assume that a reasonable rate of interest for Frank for all scenarios presented below is 8% per year. This is an annual rate, review each...
Your best friend Dave just celebrated his 24th birthday and wants to start saving for his anticipated retirement. Dave plans to retire in 36 years and believes that he will have 25 good years of retirement and believes that if he can withdraw $125,000 at the end of each year, he can enjoy his retirement. Assume that a reasonable rate of interest for Dave for all scenarios presented below is 6.5% per year. This is an annual rate, review each...
Your best friend Frank just celebrated his 30th birthday and wants to start saving for his anticipated retirement. Frank plans to retire in 35 years and believes that he will have 20 good years of retirement and believes that if he can withdraw $90,000 at the end of each year, he can enjoy his retirement. Assume that a reasonable rate of interest for Frank for all scenarios presented below is 8% per year. This is an annual rate, review each...
How do I solve these problems? Thanks! 4.LO1-6 Tony plans to deposit $1,000 at the end of each of the next three years. If his funds earn 5% compounded annually, how much will he have at the end of three years? O A. $3,150.00 OB. $3,175.50 O C. $4,310.10 OD. $3,152.50 O E. $3,500.00 You are 30 years old and you want to retire at age 60 with $1.5 million. You are going to make equal annual deposits into your...
James has heard that it is important to start saving for retirement at an early age. He deposits $1000 on each of his birthdays from age 16 through to age 25 inclusive into an account that pays 10% interest compounded annually. How much will be in his account immediately following his 25th birthday? If James leaves this amount in the account for 35 more years, without making any further deposits, how much will be in the account when he turns...
(Question 3 - 4 marks) Mr X wants to fund his grandsons education. He wants his granson to be able to draw 18,000 in 18 years from now for a period of 5 years. He wants to set up a periodic savings plan to do so. If he makes equal annual payments into a savings account that pays 6% per year, how large must his payments be to ensure that his grandsons education is funded Present Value of annuity 14...
4:09 1 OK. 73% INDE232-HOMEWORK1 - Read-only Read Only - You can't save changes to this file. V INDE232 ENGINEERING ECONOMICS STUDY QUESTIONS- HOMEWORK 1 1. How much should be put in an investment with a 10% effective annual rate today to have $10,000 in five years? 2. A person wishes to have a future sum of 100,000 US Dollars for his son's education after 8 years from now. What is the single-payment that he should deposit now so that...
9. Anthony invested a sum of money 4 yr ago in a savings account that has since paid interest at the rate of 7%/year compounded quarterly. His investment is now worth $22,438.81. How much did he originally invest? Please round the answer to the nearest cent. 10. Joe plans to deposit $300 at the end of each month into a bank account for a period of 2 yr, after which he plans to deposit S500 at the end of each month into the same...