***THIS IS A CONTEMPORARY MATHEMATICS PROBLEM*** Suppose that you earned a bachelor's degree and now you're...
***THIS IS A CONTEMPORARY MATHEMATICS PROBLEM***
Suppose that you earned a bachelor's degree and now you're teaching high school. The school district offers teachers the opportunity to take a year off to earn a master's degree. To achieve this goal, you deposit $4000 at the end of each year in an annuity that pays 8% compounded annually.
|
a. |
How much will you have saved at the end of five years? |
|
b. |
Find the interest. |
Homework Answers
a) This question requires application of FV of annuity, which is mathematically represented as:
FV = 4000 * 5.8666
FV = $23,466.40 ---> Amount accumulated
b) Interest = Future Value - Total Amount deposited
Interest = $23,466.40 - (5 * $4000) = $3,466.40
Add Answer to:
***THIS IS A CONTEMPORARY MATHEMATICS PROBLEM***
Suppose that you earned a bachelor's degree and now you're...
Question Help Suppose that you earned a bachelor's degree and a. After 5 years, you will...
Question Help Suppose that you earned a bachelor's degree and a. After 5 years, you will have approximately $. now you're teaching high school. The school district (Do not round until the final answer. Then round to offers teachers the opportunity to take a year off to the nearest dollar as needed.) earn a master's degree. To achieve this goal, you deposit $4000 at the end of each year in an annuity b. The interest is approximately $ that pays...
1. You would like to save $70 000 in 10 years. To accumulate this amount, you...
1. You would like to save $70 000 in 10 years. To accumulate this amount, you plan to make a regular deposit with an equal amount of cash into a saving account at the end of each year. This account will earn 6% p.a interest compounded annually. Your first payment will be made at the end of this year. a. How much must you deposit annually to accumulate this amount in 10 years? b. If you decide to make a...
d. 12% nominal rate, monthly compounding 2. You plan to invest an amount of money in...
d. 12% nominal rate, monthly compounding 2. You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded annually. How much must you invest if you want the balance in the CD account to be $8,500 in five years? 3. You deposited $1,000 in a savings account that pays 8 percent interest, compounded annually, planning to use it to finish your last...
1. You have $49,061.69 in a brokerage account, and you plan to deposit an additional $5,000...
1. You have $49,061.69 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $200,000. You expect to earn 9.1% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. 2. Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3...
Please help by providing explanation/step by step processes for solutions. Thank you! A young adult expects to receive...
Please help by providing explanation/step by step processes for solutions. Thank you! A young adult expects to receive a cash gift of $9,402 from his trust fund in 9 years. At an interest rate of 10% compounded annually, the present value of the gift is closest to: _______ You expect to buy a house in 9 years. At that time, you will need a down payment of $45,524. A local bank offers a savings account that pays 5% per year,...
CASELEI 2 Assume that it is now January 1, 2017, and you will need P1,000 on...
CASELEI 2 Assume that it is now January 1, 2017, and you will need P1,000 on January 1, 2020. Your Bank compounds interest at an 8 percent annual rate a. How much must you deposit on January 1, 2018 to have a balance of P1,000 on January 1, 2021? b. If you want to make equal payments on each January 1 from 2018 through 2021 to accumulate the P1,000, how large must each of the payment be? c If your...
CASELEI 2 Assume that it is now January 1, 2017, and you will need P1,000 on...
CASELEI 2 Assume that it is now January 1, 2017, and you will need P1,000 on January 1, 2020. Your Bank compounds interest at an 8 percent annual rate a. How much must you deposit on January 1, 2018 to have a balance of P1,000 on January 1, 2021? b. If you want to make equal payments on each January 1 from 2018 through 2021 to accumulate the P1,000, how large must each of the payment be? c If your...
You have $51,983.14 in a brokerage account, and you plan to deposit an additional $3,000 at...
You have $51,983.14 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $250,000. You expect to earn 11% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. years What's the future value of an 8%, 5-year ordinary annuity that pays $100 each year? If this was an annuity due, what would its future...
Finance question please help ! QUESTION 5 6.66666 po You would like to save enough to...
Finance question please help !
QUESTION 5 6.66666 po You would like to save enough to be able to afford a college tuition payment of $50,000 per year for four years. Your first year of tuition will be in 18 years. You are advised that if you save $5,000 per year and earn 9% per year compounded annually you will achieve your financial goal. Your fund is reduced by each tuition payment but the remainder of the fund will continue...
give you $1,000 per year for the next 10 1. Your grandmother has offered to give...
give you $1,000 per year for the next 10 1. Your grandmother has offered to give you $1,000 per year to what is the present value of this 10-year. $1.000 annuity discounted back to the present at 5 percent? What will be the present value if you received the $1,000 payment at the beginning of each year? 2. You are graduating from college at the end of this semester, and you have decided to invest $5000 a year for the...
Question Help Suppose that you earned a bachelor's degree and a. After 5 years, you will have approximately $. now you're teaching high school. The school district (Do not round until the final answer. Then round to offers teachers the opportunity to take a year off to the nearest dollar as needed.) earn a master's degree. To achieve this goal, you deposit $4000 at the end of each year in an annuity b. The interest is approximately $ that pays...
1. You would like to save $70 000 in 10 years. To accumulate this amount, you plan to make a regular deposit with an equal amount of cash into a saving account at the end of each year. This account will earn 6% p.a interest compounded annually. Your first payment will be made at the end of this year. a. How much must you deposit annually to accumulate this amount in 10 years? b. If you decide to make a...
d. 12% nominal rate, monthly compounding 2. You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded annually. How much must you invest if you want the balance in the CD account to be $8,500 in five years? 3. You deposited $1,000 in a savings account that pays 8 percent interest, compounded annually, planning to use it to finish your last...
CASELEI 2 Assume that it is now January 1, 2017, and you will need P1,000 on January 1, 2020. Your Bank compounds interest at an 8 percent annual rate a. How much must you deposit on January 1, 2018 to have a balance of P1,000 on January 1, 2021? b. If you want to make equal payments on each January 1 from 2018 through 2021 to accumulate the P1,000, how large must each of the payment be? c If your...
CASELEI 2 Assume that it is now January 1, 2017, and you will need P1,000 on January 1, 2020. Your Bank compounds interest at an 8 percent annual rate a. How much must you deposit on January 1, 2018 to have a balance of P1,000 on January 1, 2021? b. If you want to make equal payments on each January 1 from 2018 through 2021 to accumulate the P1,000, how large must each of the payment be? c If your...
You have $51,983.14 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $250,000. You expect to earn 11% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. years What's the future value of an 8%, 5-year ordinary annuity that pays $100 each year? If this was an annuity due, what would its future...
Finance question please help !
QUESTION 5 6.66666 po You would like to save enough to be able to afford a college tuition payment of $50,000 per year for four years. Your first year of tuition will be in 18 years. You are advised that if you save $5,000 per year and earn 9% per year compounded annually you will achieve your financial goal. Your fund is reduced by each tuition payment but the remainder of the fund will continue...
give you $1,000 per year for the next 10 1. Your grandmother has offered to give you $1,000 per year to what is the present value of this 10-year. $1.000 annuity discounted back to the present at 5 percent? What will be the present value if you received the $1,000 payment at the beginning of each year? 2. You are graduating from college at the end of this semester, and you have decided to invest $5000 a year for the...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago