Answers must be typewritten.
a. Determine how much money (to the nearest dollar),that you must invest today, at 7% per annum,compounded monthly,in order to obtain 1 million dollars in 30 years.
b. Determine how long it will take (to the nearest year),for $25,000, invested at an annual rate of interest of 10% and compounded quarterly,to grow to $200,000.
Answers must be typewritten. a. Determine how much money (to the nearest dollar),that you must in...
Question 11 (0.15 points) How much money must you invest today in order to grow to a value of $80,000 in 15 years if your money grows at 8%? Your Answer: Answer Question 12 (0.15 points) To pay for your education, you've taken out $16,000 in student loans. If you make monthly payments over 10 years at 5% APR interest compounded monthly, how much are your monthly student loan payments? Your Answer:
Practice Time Value of Money Problems 1. How much will be in an account at the end of 5 years if you deposit $10,000 today at 8.7% annual interest, compounded semi-annually? 2. What is the balance at the end of 10 years if $2.500 is deposited today and the account earns 4% interest annually? What about if it's quarterly interest? Which one should be more and why? 3. Suppose you want to have $500,000 saved by the time you reach...
1-How long will it take $12,000 to grow to $15,000 if the investment earns interest at the rate of 8% year compounded monthly? Show your algebra. Round to threedecimal places. Don’t round until the last step!!!3. Bernie invested a sum of money 5 years ago in a savings account, which has since paid interest at the rate of 8%/year compounded quarterly. His investment isnow worth $22,289.22. How much did he originally invest? Don’t round until the last step. Round to...
Betty plans to invest some money so that she has $3,800 at the end of three years. Determine how much should she invest today given the following choices: (Do not round intermediate calculations and round your final answer to the nearest penny.) a. 4.2 percent compounded daily. Amount required to be invested $ b.4.9 percent compounded monthly. Amount required to be invested $ C.5.2 percent compounded quarterly. Amount required to be invested $ d.5.4 percent compounded annually. Amount required to...
Helen plans to invest some money so that she has $3,900 at the end of three years. Determine how much should she invest today given the following choices: (Do not round intermediate calculations and round your final answer to the nearest penny.) a. 4.2 percent compounded daily. Amount required to be invested $ b. 4.9 percent compounded monthly. Amount required to be invested $ C.5.2 percent compounded quarterly. Amount required to be invested $ d.5.4 percent compounded annually. Amount required...
Problem 5.22 (Solution Video) Elizabeth plans to invest some money so that she has $2,900 at the end of three years. Determine how much should she invest today given the following choices: (Do not round intermediate calculations and round your final answer to the nearest penny. a. 4.2 percent compounded daily. Amount required to be invested b. 4.9 percent compounded monthly. Amount required to be invested .5.2 percent compounded quarterly. Amount required to be invested d. 5.4 percent compounded annually....
154. How much money must be invested in an account that pays 6% per year in- terest to be worth $20,000 at the end of 8 years if (forgetting leap years and making "convenient" assumptions): a. Interest is compounded annually? onomani a b. Interest is compounded semi-annually? c. Interest is compounded quarterly? Wo b d. Interest is compounded monthly? no wo o e. Interest is compounded weekly? f. Interest is compounded daily? g. Interest is compounded hourly? h. Interest is...
How much money should be deposited today in an account that earns 5% compounded semiannually so that it will accumulate to $8000 in three years? The amount of money that should be deposited is $ (Round up to the nearest cent.) You deposit $14,000 in an account that pays 5% interest compounded quarterly A. Find the future value after one year B. Use the future value formula for simple interest to determine the effective annual yield. A. The future value...
How much money must you deposit at 6% interest compounded semiannually in order to earn $913.50 interest in one year? A deposit of $1 is needed to earn $913.50 in one year at 6% compounded semiannually. (Round to the nearest dollar.)
Determine the sum of money that must be invested today at 9% interest compounded annually to give an investor annuity (annual income) payments of $5,000 per year for10 years starting 5 years from now.
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