Question

Adriana wishes to accumulate $2,020,000 in 35 years. If 35 end-of-year deposits are made into an account that pays interest at a rate of 5% compounded annually, what size deposit is required each year to meet Adriana’s stated objective?

Answer #1

The annual deposit amount is $22365

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Nana Akoto wants to have Ȼ50,000 at the end of 10 years. To
accumulate this sum, he has decided to save a certain amount at the
end of each year for the next 10 years and deposit it in a bank
that pays an annual interest rate of 8% compounded annually. How
much will he have to save at the end of each year

A man aged 30 deposits $600 at the end of each month for 35
years into a registered retirement savings account fund paying
interest at 3% compounded annually.
Starting on his 65th birthday, he makes 120 equal
monthly withdrawals from the fund at the beginning
of each month. During this period, the fund pays interest at 6%
compounded annually. Calculate the amount of each
withdrawal (annuity payment). A timeline may assist you in solving
this calculation.

A man aged 30 deposits $500 at the end of each month for 35
years into a registered retirement savings account fund paying
interest at 4% compounded annually.
Starting on his 65th birthday, he makes 120 equal
monthly withdrawals from the fund at the beginning
of each month. During this period, the fund pays interest at 7%
compounded annually. Calculate the amount of each
withdrawal (annuity payment). A timeline may assist you in solving
this calculation. (10 points)

For the past 6 years Charlene Miller has made deposits of $300
at the end of every 6 months, earning interest at 5% compounded
semi-annually. If she leaves the accumulated balance in an account
earning 6% compounded quarterly, what will the balance be in
Charlene’s account at the end of another 10 years?

1)Nicole wants to accumulate $ 8,000 at the end of 5 years
making equal money deposits at the end of each year for the next 5
years. If Nicole can earn 7% of her investments, how much should
she deposit at the end of each year to meet her goal (accumulate $
8,000)?
2)Mr. Roman wants to determine how long it will take for an
initial deposit of $ 10,000 to double.
a)If Mr. Román earns 10% annual
interest on...

1. For the next 6 years, you pan to make equal quarterly
deposits of $600.00 into an account paying 8% compounded quarterly.
How much will be the total you have at the end of the time?
2. How much money will you have to deposit now if you wish to
have $5,000 at the end of 8 years. Interest is to be at the rate of
6% compounded semiannually?
3. In the California “Million Dollar Lottery” a winner is paid...

Newman Hitchcock is 38 years old today and he wishes to
accumulate $501,000 by his 61st birthday so he can retire to his
summer place on Lake Hopatcong. He wishes to accumulate this amount
by making equal deposits on his 38th through his 60th birthdays.
What annual deposit must Newman make if the fund will earn 8%
interest compounded annually? (Round factor values to 5
decimal places, e.g. 1.25124 and final answer to 0 decimal places,
e.g. 458,581.)

Mr. Gonzales has made beginning-of-year deposits into an
investment account for the past 21 years. Each deposit was $5500,
and the account earned interest at a rate of 4.5% APR, compounded
quarterly, each year. Having made his last deposit one year ago, he
now plans to transfer all of the accumulated funds today into a
money-market account that earns an APR of 1.50% compounded
quarterly. If he plans to withdraw $4000 from the account at the
end of each quarter...

what payment, made at the end of each six months for 6 years,
will accumulate to $13,100 at 10% compounded annually

You would like to have $73,000 in 14 years. To accumulate this
amount, you plan to deposit an equal sum in the bank each year that
will earn 9 percent interest compounded annually. Your first
payment will be made at the end of the year.
a. How much must you deposit annually to accumulate this
amount?
b. If you decide to make a large lump-sum deposit today
instead of the annual deposits, how large should the lump-sum
deposit be? ...

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