Question

Lucy Anders wishes to save $700 at the end of each year for the first four...

Lucy Anders wishes to save $700 at the end of each year for the first four years. At the

end of each of the fifth ,sixth, and seventh years, she wishes to save $625. Find the future

value of this cash flow at the end of the seventh year if the interest rate is 4.7% compounded

annually.

Homework Answers

Answer #1

Solution

Future value of a cashflow=Cashflow*(1+r)^n

where

r-intrest rate=4.7%

n-number of periods of compounding

Calculation of future value for cashflows given below ,using above formula

Excel formula

Thus the Future value of cashflow=$5411.896

If you are satisfied with the answer,please give a thumbs up

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the present value of twenty-five $700 cash flows that occur at the end of...
What is the present value of twenty-five $700 cash flows that occur at the end of each year for the next 25 years at an annual interest rate of 8% compounded annually? The first cash flow occurs one year from now.
To save for​ retirement, Karla Harby put ​$625 each month into an ordinary annuity for 12...
To save for​ retirement, Karla Harby put ​$625 each month into an ordinary annuity for 12 years. Interest was compounded monthly. At the end of the 12 ​years, the annuity was worth ​$128,965. What annual interest rate did she​ receive?
Find the future value of an annuity of $1800 paid at the end of each year...
Find the future value of an annuity of $1800 paid at the end of each year for 5 years, if interest is earned at a rate of 5%, compounded annually. (Round your answer to the nearest cent.)
Adriana wishes to accumulate $2,020,000 in 35 years. If 35 end-of-year deposits are made into an...
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?
Lucy purchased a house for $400,000. She made a down payment of 25.00% of the value...
Lucy purchased a house for $400,000. She made a down payment of 25.00% of the value of the house and received a mortgage for the rest of the amount at 4.62% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 5 year period. a. Calculate the monthly payment amount. b. Calculate the principal balance at the end of the 5 year term. c. Calculate the monthly payment amount if the mortgage was renewed for another 5...
1.What is the discount rate assuming the present value of $840 at the end of 1-year...
1.What is the discount rate assuming the present value of $840 at the end of 1-year is $765? 2.What is the Future value of $3,500 deposited for 12 years at 5% compounded annually? 3. If $2,800 is discounted back 4 years at an interest rate of 8% compounded semi-annually, what would be the present value? 4. Determine the future value of $6,000 after 5 years if the appropriate interest rate is 8%, compounded monthly. 5. Consider a newlywed who is...
You are considering two investments. The first pays $40,000 at the end of the seventh years....
You are considering two investments. The first pays $40,000 at the end of the seventh years. The second investment pays $20,000 at the end of the sixth years and another $20,000 at the end of the eighth year. The appropriate effective annual interest rate is 4% for both investments. Which investment is worth more today?
Ben wishes to save some money for a trip to Bhutan. He plans to make regular...
Ben wishes to save some money for a trip to Bhutan. He plans to make regular payments of $700 per month for the next 2 years into an account at Dawson’s Bank that earns 5.2% interest per annum compounded weekly. The first payment will be made immediately. The future value of Ben’s savings one month after the last payment will be Select one: a. $17,100.65 b. $16,987.42 c. $18,564.33 d. $17,742.59
a man wishes to save for his retirement pension plan which is 36 years from now....
a man wishes to save for his retirement pension plan which is 36 years from now. he planned to receive 100000 at the end of each year for the nest 15 years starting from the first year of his retirement. if the insurance company offers an investment of 11.495% interest rate compounded quarterly, what will be hi s quarterly payments. Please Solve As soon as Solve quickly I get you UPVOTE directly Thank's Abdul-Rahim Taysir
a man wishes to save for his retirement pension plan which is 36 years from now....
a man wishes to save for his retirement pension plan which is 36 years from now. he planned to receive 100000 at the end of each year for the nest 15 years starting from the first year of his retirement. if the insurance company offers an investment of 11.495% interest rate compounded quarterly, what will be hi s quarterly payments. Please Solve As soon as Solve quickly I get you UPVOTE directly Thank's Abdul-Rahim Taysir