Question

Assume you invest money by making three equal deposits of SR 8,000 over three years (starting at the end of year 1, i.e. at n=1) to a saving account . Furthermore, assume you make withdrawals from the saving account of SR 2500 at n=1, SR 3000 at n=2 and SR 3500 at n=3. What will be the net balance of the saving account at the end of year 4 if your annual earing interest rate is 14% (chose the closest answer)?

a) SR 16938 |
||

b) SR 18320 |
||

c) SR 17620 |
||

d) SR 19039 |
||

e) SR 19776 |

Answer #1

Assume you invest money by making three equal deposits of SR
8,000 over three years (starting at the end of year 1, i.e. at n=1)
to a saving account . Furthermore, assume you make withdrawals from
the saving account of SR 2500 at n=1, SR 3000 at n=2 and SR 3500 at
n=3. What will be the net balance of the saving account at the end
of year 4 if your annual earing interest rate is 14% (chose the
closest...

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...

Assume you inherit $300,000 today and you decide to invest that
money in a money market account. To build up your savings for your
retirement, you decide to make yearly deposits of $20,000 for 10
years into that same account. However, you can only start your
yearly deposits two years from now. What is the NPV of this cash
flow, assuming a return of 5% a year?

If you deposit $1000 in one year, $2000 in two years and $3000
in three years, $4000 in four years, $5000 in five years. How much
will you have in five years at 9 percent interest?
How much in 10 years if you add nothing to the account after the
fifth year?
a) Suppose you invest $2500 in a mutual fund today and $5000 in
one year. If the fund pays 9% annually, how much
will you have in two...

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...

Mary Jo plans to invest some money so that she has $8,000 at the
end of three years.
Option A
Option B
Option C
Option D
APR
5.19%
5.11%
5.20%
5.40%
m/per year
365
12
4
1
How much should she invest today given the choices above?
What is her best choice?
What is the EAR for each account? Support your decision in
question 2

How much must you invest in equal amount each year for 10 years
starting now (i.e., years 0 through 9) if you want to be able to
withdraw $5,000 at end of eleventh year and increase annual
withdrawal by $1000 each year until year 25 yrs ? interest rate is
6% compounded annually

All are apart of a three-piece problem
7.
A) It is now the beginning of the year. Assume that, starting at
the end of the year, you will make deposits of $204 each year into
a savings account. You will make a total of 4 annual deposits. If
the savings account interest rate is 8%, how much money will you
have at the end of year 4? (In other words, what is the future
value of this annuity?)
B) Assume...

Assume you have chosen to invest the $1,000 monthly
contributions at the end of each month. Once retired, you will
adjust your investment allocation to be more conservative and
expect to average a 4% return on the account each year, compounded
monthly. While retired, you plan to draw $5,000 from the account at
the end of each month to go towards living expenses. You expect
your lifespan in retirement to be 30 years. EXCEL format
A. How much money will...

Assume that you have $3000 to invest for 5 years. You could
purchase a 5-year CD with a guaranteed interest rate of 2.52%
compounded monthly. On the other hand, if you are willing to face
the risk of actually losing your money, you could invest it in the
stock market which has an historical return rate of about 6.5% per
year. Think of this as investing your money in a
non-guaranteed account that pays 6.5% APR compounded
annually.
With the...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 37 minutes ago

asked 42 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago

asked 4 hours ago

asked 4 hours ago