Question

Please show all your work step by step all the formula that is used

A. How much will you have saved after 6 years by contributing $1200 at eh end of each year if you expected to earn 11% on the investment?

B. A business owner plans to deposit his annual profits in an investment account earing a 9% annual return. If the owner starts with their first deposit today for $22000. And expects to make the same profit for the next 7 years, how much will be saved for retirement at the point?

C. An investor plans to $500 a year and expects to get a 10.5% returns. If the investor makes these contributions at the end of the next 20 years, what is the present values of this investment today?

D. What is the present value (PV) of a 12-years lease arrangement with an interest rate of 7.5% that requires annual payments of $4250. Per year with first payment being due now?

E. A recent college graduate hopes to have $200000. Saved in their retirement account 25 years from now by contributing $150 per month in a 401(k) plan. The goal is to earn 10% annually on the monthly contribution. Will they have $200000. At the end of the 25 years?

Answer 1