Question

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?

Answer #1

1. Lump Sum: How much do we need to set aside today to have
$1,000,000 in 10 years if we can earn 6% on our investment?
2. Payment at the beginning of the year: How much do we have to
set aside at the beginning of each year on an annual basis to have
the $1,000,000 in 10 years if we earn 6% on our money?
3. Lump Sum and Payment: If we put $250,000 in the bank today
and...

You have inherited some money and you want to set some of that
money aside for ten years. After ten years, you would like to
receive $7600.00 at the end of each 6 months for nine years. If the
interest is 6.5% compounded semi-annually, how much of your
inheritance must you set aside?

How much money would you accumulate into your pension fund, if
you put aside 50 euros every month for 30 years at 3% interest?
How much money you must save every months, if you need to have
5000 euros in 4 years at 2% interest?

How much money needs to be set aside today to purchase a new
piece of equipment in 4 years? The annual interest rate is 10% and
the cost of the equipment is expected to increase by 4% each year.
The current cost of the equipment is $125,000.

How much money do you need to put away every year for the first
10 years into an account, that earns an interest rate of 2%
compounded quarterly, if you expect to have $250,000 at the end of
the 15th year?
You now invest this $250,000 (lump sum) into another account
for 15 more years. What is the interest rate, compounded annually,
that you should look for if you need to have $325,000 at the end of
the period?

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 would like to set aside money for your child’s education at
a 4-year college. Tuition payments will begin in exactly 18 years
and will be paid for 4 consecutive years at the child’s 18th, 19th,
20th, and 21st birthdays. It is estimated that the full cost of the
child’s education will be $60,000 per year. Assume interest rate to
be 5%.
- What is the amount needed to meet this cost exactly at 18
years?
- What is the...

How much should be set aside each month to accumulate $10 000 at
the end of year 3 under 12% annual interest rate compounded
monthly?
Select one:
a. $232.14
b. $252.14
c. $277.78
d. $222.14
e. $242.14

You are thinking about retirement and decide to put
aside $3000 each year in a savings plan that earns 10% interest. In
15 years, you will receive a one-time gift of $20,000 that also can
be invested.
a. How much money will you have accumulated 30 years from
now?
b. If your goal is to retire with $800,000 of savings, how much
extra do you need to save every year?
c. If you believe that you will live 15 more...

How much money would you have to invest today, at an interest
rate of 5% in order to reach your goal of $1,000,000 in 30 years?
Assume you don't put any additional money into this investment.
$123,737.45
$321,377.45
$231,377.45
$132,733.45
How much money would you need to invest every year in order to
reach your goal of $1,000,000 in 30 years at the same interest rate
of 5%, if you had no money up-front TODAY to invest? (PV=0)
$15,051.44
$231,377.45...

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