Question

How much money would be accumulated 18 years from now from deposits of $15,000 per year for five consecutive years, starting 3 years from now, if the interest rate is 8% per year?

Answer #1

**Solution:**

Annual deposit from beginning of 4th year to beginning of 8th year = $15,000

First deposit will be for 15 year, 2nd deposit will be for 14 years and simliarly last deposit will be for 11 years

Interest rate = 8%

Now accumulated amount after 18 years

= [$15,000 * (1+0.08)^15] + [$15,000* (1.08)^14] + [$15,000* (1.08)^13] + [$15,000* (1.08)^12] + [$15,000* (1.08)^11]

= ($15,000*3.172169) + ($15,000*2.937194) + ($15,000*2.719624) + (15,000*2.51817) + ($15,000*2.331639)

= $205,181.93

Thefore money accumulated 18 years from now = $205,171.93

If you deposit $10000 each year for 10 years starting 3 years
from now, how much equal amounts of money will have to be withdrawn
20 and 25 years from now in order to deplete the account? Use an
interest rate of 10% per year.

A person deposits $ 15,000 today in a savings account that pays
3% interest. Three years later he deposits $ 14,000. And, then, two
years after this last deposit, product of the profit of a developed
project, deposits $ 12,500. Four years after depositing the $
12,500, he removes half of the money accumulated in this account,
and transfers this amount to an investment fund that pays a rate of
8%. How much money would you have accumulated six years...

What is the present value of $200 to be received two years from
now, with an interest rate of 5%?
You deposit $2000 today at 6% interest. How much will you have
in 5 years?
You invest $5,000 today. You will earn 8% interest. How much
will you have in 4 years?
You have $450,000 to invest. If you think you can earn 7%, how
much could you accumulate in 10 years?
You deposit $300 each year for 15 years...

1.
How much would $2,000 become in 10 years at 5% interest?
2.
How much would $2,000 deposits each year for 10 years at 5% become
in 10 years?
3.
How much money would you have to have on deposit today at a 5%
annual interest rate to become $50,000 in 40 years?
4.
How much money would you have to have on deposit to provide $30,000
each year for 25 years (considering 5% interest)?

You invest $200 today, $300 next year, and $400 three years from
now. How much money will you have 15 years from now if earning 10%
interest?
Purchasing power of money depends upon the rate of interest and
time period. true or false
For the purpose of analysis using PW method, we still need to
renew the shorter life project. True or False

How much would you pay today for an asset that pays five
payments of $100 each year for five years, starting eight years
from now, assuming the interest rate is 3%?
$372.37
$457.97
$361.53
$500.00

How much money would you need to set aside each year for 25
years, at 10% interest, to have accumulated $1,000,000 at the end
of the 25 years?

How much would you pay today for an investment that provides you
$2,360 each year for the
next 5 years, starting next year, and $18,300 18 years from now
if the interest rate is 4.17% APR compounded annually?

How much money should be deposited annually in a bank account
for five years if you wish to withdraw $5,000 each year for three
years, beginning five years after the last deposit? The interest
rate is 3% per year

How much money is required now to provide an income of $1,600
per month for six years if the money earns interest at 6% p.a.
compounding monthly and the first $1,600 payment is payable 2 years
from today?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 22 minutes ago

asked 22 minutes ago

asked 29 minutes ago

asked 36 minutes ago

asked 39 minutes ago

asked 40 minutes ago

asked 40 minutes ago

asked 42 minutes ago

asked 43 minutes ago

asked 43 minutes ago

asked 46 minutes ago