Question

Your goal is to save $75,000 at the end of 8 years. Today, you deposit $10,000....

Your goal is to save $75,000 at the end of 8 years. Today, you deposit $10,000. You make an additional 5 yearly deposits of $10,000. What must the interest rate be? Make sure to show your work. Yes excel can be used.

Homework Answers

Answer #1

Formulae

Formulae as above

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
Your goal is to save $75,000 at the end of 8 years. Today, you deposit $10,000....
Your goal is to save $75,000 at the end of 8 years. Today, you deposit $10,000. You make an additional 5 yearly deposits of $10,000. What must the interest rate be? Make sure to show your work.
You would like to have $47,000in 9 years. To accumulate this amount you plan to deposit...
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?...
Using Excel: Your goal is to have $5,000 in five years from now, and your mother...
Using Excel: Your goal is to have $5,000 in five years from now, and your mother help to get started and give you $500 now. From your income you plan to make five additional deposits, one at the end of each year. The first deposit from your money is made at the end of the first year. If you deposit the money in a bank that pays 7% interest, how much must your annual deposit be.
You want to have $75,000 in your savings account 12 years from now, and you’re prepared...
You want to have $75,000 in your savings account 12 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.8 percent interest, what amount must you deposit each year? How to input the formula in Excel?
You would like to save annually for buying a car 6 years from today. Suppose the...
You would like to save annually for buying a car 6 years from today. Suppose the first deposit is made today and the last deposit will be made 5 years from now. Assume the car will cost you $30,000 and your deposits earn you interest at 6% p.a, compounded annually. (a) What is your annual deposit amount? (b) Instead of making annual deposits, you would like to make your deposit monthly and the bank is happy to pay your interest...
Your goal is to have $7,500 in your bank account by the end of 12 years....
Your goal is to have $7,500 in your bank account by the end of 12 years. If the interest rate remains constant at 9% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? (Note: Round your answer for PMT to two decimal places.) $372.38 $335.14 $297.90 $409.62 If your deposits were made at the beginning of each year rather than an...
Dave makes 3 deposits of $9000 to his saving account over 8 years. The first deposit...
Dave makes 3 deposits of $9000 to his saving account over 8 years. The first deposit happens at Year 0, the second in 3 years, and the final deposit 1 year after that. For the first 3 years the effective yearly rate is 6%. For the 1 year after that, the rate is 11%. For remaining years, the rate is only 9%. How much is at the end if the 8 years? Can you please use excel and show formulas.
Reaching a Financial Goal You need to accumulate $10,000. To do so, you plan to make...
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....
Please show work You have $25,000 today. If you can deposit the funds in a money...
Please show work You have $25,000 today. If you can deposit the funds in a money market account along with yearly deposits of $12,000, what rate should it earn in the least to allow you to retire in 40 years with $1.25M?
a) At the end of five years you wish to purchase a car for $25,000. You...
a) At the end of five years you wish to purchase a car for $25,000. You can invest your money at the rate of 5% compounded annually. How much money must you deposit in your investment account today in order to have enough funds to purchase your car? Interest rate - Actual amount of the deposit is: Number of periods - Table used - Factor from table used - b) You want to buy a business with an annual cash...