Question

You need $20,000 and you think you could earn an annual rate of 7%. If you plan to make deposit of $300 per month, how long before reach your goal? (Assume the first payment is made 1 month.)

Answer #1

$300 per month depositing would be an annuity.

We need $ 20k at the foreseable date.

We need to find out at what time, the future value of this
annuity would equal the desired amount. (I.e Rs 20k)

The future value of an annuity in case payment is one period away
is : P((1+r^n)-1)/r,

where r is the rate of interest.

Calculating monthly,

R is 7/1200,

Future Value is $20000

P is $ 300

We need to find n.

Now,

Recalculating the equation,

20000 = 300 ((1+7/1200)^n)-1) / (7/1200)

or,

20000/300*1200/7 = ((1+7/1200)-^n)-1

or,

(1+7/1200)^n = 11429.57

Using Logarithms,

n = 1607 months (approx)

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? ...

Reaching a Financial Goal
You need to accumulate $10,000. To do so, you plan to make
deposits of $1,750 per year - with the first payment being made a
year from today - into a bank account that pays 7% annual interest.
Your last deposit will be less than $1,750 if less is needed to
round out to $10,000. How many years will it take you to reach your
$10,000 goal? Round your answer up to the nearest whole
number....

You need to accumulate $10,000. To do so, you plan to make
deposits of $1,100 per year, with the first payment being made a
year from today, in a bank account that pays 7 percent annual
interest. Your last deposit will be less than $1,100 if less is
needed to round out to $10,000 or more than $1,100 if more is
needed to round out to $10,000. How many years will it take you to
reach your $10,000 goal? How...

You would like to have $41,000 in 15 years. To accumulate this
amount, you plan to deposit each year an equal sum in the bank,
which will earn 7 percent interest compounded annually. Your first
payment will be made at the end of the year.
At the end of 4 years you will receive $9,000 and deposit this
in the bank toward your goal of $41,000 at the end of 15 years. In
addition to this deposit, how much must...

You need to accumulate $10,000. To do so, you plan to make
deposits of $2,000 per year - with the first payment being made a
year from today - into a bank account that pays 8.66% annual
interest. Your last deposit will be less than $2,000 if less is
needed to round out to $10,000. How many years will it take you to
reach your $10,000 goal? Round your answer up to the nearest whole
number. How Large will the...

Reaching a Financial Goal You need to accumulate $10,000. To do
so, you plan to make deposits of $1,400 per year - with the first
payment being made a year from today - into a bank account that
pays 7.44% annual interest. Your last deposit will be less than
$1,400 if less is needed to round out to $10,000. How many years
will it take you to reach your $10,000 goal? Round your answer up
to the nearest whole number....

You need to accumulate $10,000. To do so, you plan to make
deposits of $1,550 per year - with the first payment being made a
year from today - into a bank account that pays 8.6% annual
interest. Your last deposit will be less than $1,550 if less is
needed to round out to $10,000. How many years will it take you to
reach your $10,000 goal? Round your answer up to the nearest whole
number.
a.) ___ year(s)
b.)...

You would like to have $47,000in 9 years. To accumulate this
amount you plan to deposit each year an equal sum in the bank,
which will earn 8 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 $47,000 in 9
years?
b. If you decide to make a large lump-sum deposit today instead
of the annual deposits, how large should this lump-sum deposit be?...

Reaching a Financial Goal
You need to accumulate $10,000. To do so, you plan to make
deposits of $1,050 per year - with the first payment being made a
year from today - into a bank account that pays 11% annual
interest. Your last deposit will be less than $1,050 if less is
needed to round out to $10,000. How many years will it take you to
reach your $10,000 goal? Do not round intermediate calculations.
Round your answer up...

Please include steps: You need to accumulate $10,000. To do so,
you plan to make deposits of $1,900 per year - with the first
payment being made a year from today - into a bank account that
pays 9.35% annual interest. Your last deposit will be less than
$1,900 if less is needed to round out to $10,000. How many years
will it take you to reach your $10,000 goal? Round your answer up
to the nearest whole number. year(s)...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 2 minutes ago

asked 19 minutes ago

asked 19 minutes ago

asked 21 minutes ago

asked 26 minutes ago

asked 45 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago