5. How much do you have to deposit today so that exactly 10 years from now you can withdraw $10,000 a year for the next five years? Assume an interest rate of 6%. Please use excel formul
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5. How much do you have to deposit today so that exactly 10 years from now you can withdraw $10,000 a year for the next five years? Assume an interest rate of 6%. Please use excel formul
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?How much do you have to deposit today so that beginning 11 years from now you can withdraw 10,000 a year for the next 5 years ( periods 11 through 15 ) plus an additional amount of 20,000 in the last year ( period 15 ) ? Assume an interest rate of 7 percent. The amount of money you have to deposit today is $?
- 4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)How much do you have to deposit today so that beginning 11 years from now you can withdraw $12,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $24,000 in the last year (period 16)? Assume an interest rate of 9 percent.Assume that you just deposited $1000 into a savings account that earns an interest rate of3% per year. How much will you be able to withdraw each year if you make your first annual withdrawal one year from today and your final withdrawal six years from today?
- How much do you have to deposit today so that beginning 11 years from now you can withdraw $15,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $30,000 in the last year (period 15)? Assume an interest rate of 9 percent. The amount of money you have to deposit today isHow much do you have to deposit today so that exactly 10 years from now you can withdraw $10,000 a year for the next five years? Assume an interest rate of 6%Suppose you want to withdraw $20,000 at the end of year 3 and another $20,000 at the end of year 5. The account's interest rate is 5% compounded annually. A How much should you deposit now? B) Suppose you realize you can only deposit $10,000 today, but you expect to have more funds available in 1 year. How much must you deposit into the account at the end of year 1 so that you can still make the necessary withdrawals at the end of years 3 and 5?
