Question

In your answers, you should properly show your work by writing
down your entries into the calculator. For instance, if you use the
TVM worksheet of your financial calculator to compute how long it
takes to double your account balance given 5% annual interest rate,
you should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2,
CPT N=? --- the question mark here stands for your answer to the
question.

Question 1 - Basic Setting [2 points] Change the number of
decimal places from 2 to 4.

Question 2 - Basic Setting [2 points] Explain the difference
between the two calculation methods: Chn and AOS.

Question 3 - TVM Worksheet – compute FV [2 points] Suppose you
deposit $6,000 today in a savings account that pays 0.5 percent
annual interest. How much will you have in your account in 20
years?

Question 4 - TVM Worksheet – compute PV [2 points] How much
money must you deposit in a savings account that pays 0.5 percent
annual interest in order to have $6,000 in 20 years?

Answer #1

In
your answers, you should properly show your work by writing down
your entries into the calculator. For instance, if you use the TVM
worksheet of your financial calculator to compute how long it takes
to double your account balance given 5% annual interest rate, you
should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2, CPT
N=? --- the question mark here stands for your answer to the
question.
Question 6 – PV, Ordinary Annuity, Compounding [2 points]:
Find...

Today, you turn 21. Your birthday wish is that you will be a
millionaire by your 40th birthday. In an attempt to reach this
goal, you decide to save $75 a day, every day, until you turn 40.
You open an investment account and deposit your first $75 today.
What rate of return must you earn to achieve your goal? Note:
Ignore Leap Years. Use TVM function on financial calculator to
solve problem (N, I/Y, PV, PMT, FV)

Please show your work. If you don't show your work, you
will not get credit. You can put the number next to the function in
your submission. For example, FV = 150,000, PV = 250,000, i = 10%,
and n = 5. Questions, let me know. If you do not show your work, no
credit.
If you wish to accumulate $325,000 in 15 years, how much must
you deposit today in an account that pays an annual interest rate
of...

30) Since your first birthday, your grandparents have been
depositing $1200 into a savings account on every one of your
birthdays. The account pays 6% interest annually. Immediately after
your grandparents make the deposit on your 18th birthday, the
amount of money in your savings account will be closest to
________.
A) $44,504.14 B) $37,086.78 C) $51,921.49 D) $22,252.07 5
Explanation: N = 18 PMT = $ 1200 I = 6 PV = 0 Compute FV =
$37,086.78.
31) Since...

HW17. Suppose that beginning on your 25th birthday, you put
$1,000 into a savings account, and you make a new $1000 deposit
every 3 months, up to and including your 45th birthday. The savings
account pays 6% annual interest, compounded quarterly. \\
a. How much money will be in the account on your 45th
birthday?
b. How much will your first $1000 deposit end up contributing to
the amount in your bank account, on your 45th birthday?
c. The total...

You have purchased a home for $200,000 with a down payment of 10
percent. Prevailing mortgage interest rates are 4.5 percent. If you
finance the home for 30 years, what is your monthly payment?
N
I/Y
PV
PMT
FV
If you finance it for 20 years, what
is your monthly payment?
N
I/Y
PV
PMT
FV
If you finance it for 15 years, what
is your monthly payment?
N
I/Y
PV
PMT
FV
Assuming you choose a 20-year payment
period...

Time Value of
Money
The following
situations test your comprehension of time value of money concepts.
You will need your financial calculator. For each problem write the
variable from the problem next to the variable in your calculator
menu. Put a question mark next to the variable we are solving for,
and put the answer to that variable on the “Answer” line. Remember
that there has to be a negative number in your calculations for the
formulas to work. If...

You and your spouse purchased your first home immediately after
the birth of your child. You have lived in the home for the past 18
years, paying your mortgage on time, but otherwise struggled to
accumulate savings to pay for college. Your child is off to college
this fall and annual cost is estimated to be $70,000.
You originally paid $450,000 for your
house, which has appreciated in price at 3.5% per annum. The
original mortgage was a 30 year...

Calculator
Problem:
1= You are tired of
working. Since you have $750,000 invested at 6.4%, you decide to
quit your job and enjoy life for a while. You want to withdraw
$50,000 at the beginning of each year, starting this year. You also
wants to have $75,000 left when you begin your hunt for a new job.
For how many years can you make the $50,000 withdrawals and still
have $75,000 left in the end?
2-
Calculator
problem:
Suppose you...

You are a financial adviser working with a client who wants to
retire in eight years. The client has a savings account with a
local bank that pays 7% annual interest. The client wants to
deposit an amount that will provide her with $1,004,000 when she
retires. Currently, she has $301,600 in the account. (FV of $1, PV
of $1, FVA of $1, and PVA of $1) (Use the appropriate
factor(s) from the tables provided.)
How much additional money should...

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