Question

a. If you set a goal to accumulate a total of 50,000 dollars ten years from today for your child’s education. You decide to start to deposit a fixed amount of money in your savings account, once each year, ten times for the next ten years, beginning today. Assume that the annual interest rate is 4%, how much do you have to deposit each year.

Answer #1

Future Value to accumulate in 10 years = $50,000

Calculating the equal periodic annuity starting at the beginning of each year using Future value of annuity due formula:-

Where, C= Periodic deposits

r = Periodic Interest rate = 4%

n= no of periods =10

Future Value = $50,000

**C = $4004.37**

**So, amount to be deposited each year =
$4004.37**

*If you need any clarification, you can ask in
comments. *

**If you like my answer,
then please up-vote as it will be
motivating**

1. You would like to have $50,000 in 15 years. To accumulate
this amount you plan to deposit each year an equal sum in the bank,
which will earn 7% interest annually. Your first payment will be
made at the end of the year. o How much must you deposit annually
to accumulate this amount? o If you decide to make a large lump-sum
deposit today instead of the annual deposits, how large should this
lump-sum deposit be? o At...

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?...

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? ...

You just turned 18 years old today and decided you want to
accumulate $6,000,000 for retirement. You figure you can start
making weekly deposits into a mutual fund that promises to pay an
average yield of 12% per year. You intend to make the first deposit
at the end of this week and retire exactly on the day of your
67th birthday. How much money should you deposit weekly
in the mutual fund to meet your goal?

If you'd like to accumulate $50,000 in 9 years by investing in
an account earning 4% compounded weekly, how much would you need to
deposit today? Round to the nearest cent.

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....

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....

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...

You need to accumulate $114,480 for your son's education. You
have decided to place equal year-end deposits in a savings account
for the next 14 years. The savings account pays 6.88 percent per
year, compounded annually. How much will each annual payment
be?
Please show your work and do not use calculators.

You believe that you will spend $50,000 a year for 25 years once
you retire in 40 years. For this purpose, you make annual payments
into a savings plan (the same amount each year until your
retirement). If the interest is 5% per year, (a) How much money
will you have for your retirement spending when you retire? (b) How
much must you save each year to meet your retirement goal?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 7 minutes ago

asked 8 minutes ago

asked 19 minutes ago

asked 34 minutes ago

asked 40 minutes ago

asked 42 minutes ago

asked 44 minutes ago

asked 46 minutes ago

asked 49 minutes ago

asked 1 hour ago

asked 1 hour ago