After graduation you plan to work and stay for 10 years and then start your own business. You currently have $50,000 which he will invest immediately(year zero). In addition you expect to save and deposit $10,000 a year for the first five years(year 1 through year 5) and $15,000 annually for the following five years (year 6 through year 10). If the account earns 10% compounded annually how much will you have in your account when you start your business 10 years from now?

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: It is assumed that, 10.5 years from now.

Q: At what interest rate will you need to invest in the current IRA account balance in order to achieve…

A:

Q: You decide to make annual deposits of $300.00 for 12 years into an account which pays 5% compounded…

A: Annual deposits = $300 Time duration = 12 years Interest Rate = 5%  The future value of the annuity…

Q: How much money must you deposit in an account each year to fund your children’s education? Your…

A: Information Provided: College expenses = $45,000 Interest rate = 5%

Q: To help you reach a $16,000 goal 8 years fromnow, your father offers to give you $4,000 now.You plan…

A: Steps to calculate annual deposits is shown: Calculate the FV of an amount given by the father at…

Q: Max wants to save $500,000 to give to the local clown college (possibly Duke or NCSU). Max decides…

A: In the given question we require to compute how many full deposits will Max need to make to have…

Q: Joe opens an investment account with an initial deposit of $200. He then sets up monthly deposits of…

A: Future value = Present value * (1+r)^n Where r =rate of interest per period i.e. 5.25%/12 = 0.4375%…

Q: You need 40,000 pesos per year for 4 years to go to college. Your father invested 50,000 pesos at 7%…

A: Requirement = 40,000 per year for 4 years Initial Investment = 50,000 Interest = 7%

Q: You plan to start grad school in 5 years (at the end of year 5) and will graduate 3 years after you…

A: There are two types of basic annuities, i.e., ordinary annuity and annuity due. An ordinary annuity…

Q: You believe that you can set aside $1,200 each year for the next four years, starting immediately,…

A: Given : Interest rate = 4% compounded annually Year Payment 1 1200 2 1200 3 1200 4…

Q: Suppose that Jacob would like to invest at the end of each month for the next 15 years into an…

A: Ordinary Annuity refers to series of equalized payments that are made at end of period for certain…

Q: Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he…

A: The correct answer for the above mentioned is given in the following steps for your reference.

Q: Syariqul Haq is trying to save up for a big vacation. He plans to take a trip around Japan when he…

A: Future value  The future value indicates the value of a current investment over a specified period…

Q: You are saving for the college education of your two children. They are two years apart in age; one…

A: Present value of the fees for each of the 2 kids is calculated.Kid 1 (elder kid enters collect after…

Q: To save up for your dream business, you committed to deposit P2,000, starting today, every month in…

A: Present value (PV)= P2,000 Interest rate (r)= 6% Number of period (n)= 5 Future value (FV)

Q: Today is your 22nd birthday and you have just started your first job out of college. You decide that…

A: The compounded value of each payment made over common interval of time is called an annuity and its…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: how much money will have accumulated at the end of the 10-year period

A: Future Value of Annuity: It is the future worth of a series of cashflows/payments compounded over a…

Q: Danny wants to save some money using the following schedule. Starting today, he will make $100…

A: Future value of annuity ( FVA) is stream of recurring cashflow compounded at specified rate to…

Q: Michael is updating his estate plan for himself and his family. He would like to provide an income…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Matt plans to start his own business once he graduates from college. He plans to save $3,000 every…

A: Compute the semi-annual interest rate as follows: Compute the no. of half-years as follows:

Q: On January 1, Alan King decided to transfer an amount from his checking account into aninvestment…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduatefrom…

A: The loan is to be paid in 10 annual installments of $1,490. It includes both the payment of interest…

Q: Brad will graduate next year. When he begins working, he plans to deposit $6000 at the end of each…

A: Using Excel FV function

Q: Ginny is planning for her son's college education to begin five years from today. She estimates the…

A: Frist we need to calculate present value of annuity due by using this formula PV of annuity due…

Q: Flora is planning ahead for a 3-month world tour to celebrate completing graduate school. The trip’s…

A: given, FV = $7000 N =4 R=5% M=12

Q: You are saving for the graduation (4 years) of your two children. They are two years apart in age;…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: After graduation, you plan to work for Asia Corporation for 12 years and then start your own…

A:

Q: Tom plans to save $2,000 for each of the next ten years, starting tonight when he will write his…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: After completing your Bachelor of Business (Accounting) degree, suppose you secure a permanent…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You are graduating in two years and are thinking about your future. You know that you will want to…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: o complete your last year in business school and then go through law school, you will need $20,000…

A: Calculation of Amount of Deposits and Amount of Deposits after first and last withdrawal: The amount…

Q: You plan to buy the house of your dreams in 18 years. You have estimated that the price of the house…

A: Monthly payment refers to the periodic payments made towards the acquisition of an asset or security…

Q: a business owner plans to deposit annual profits in an investment account earning a 9% annual…

A: Annual interest rate (r) = 9% Annual investment (P) = 22,000 Number of annual deposits (n) = 1+7 = 8

Q: Starting next year, Moussa Al Khatib will need $10,000 annually for 4 years to complete his…

A: Given information: Amount needed in next year $10,000 Number of years 4 Interest rate is 5%.

Q: Starting next year, you will need $5,000 annually for 4years to complete your education. (One year…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Mr. White is updating his estate plan for himself and his family. He would like to provide an income…

A:

Q: When your first child is born, you begin to save for college by depositing $500 per month in an…

A: We need to compute the future value of the recurring payments every month for the period of 18 years…

Q: Tuition is expected to increase with an average of 5% per year for the next 5 years. The annual cost…

A: Mutual funds are pool of funds invested by the mutual fund companies on behalf of the investors…

Q: An electrical engineer who is anticipating paying for his daughter’s college education plans to…

A: Calculate the future value of the deposits by using the EXCEL FV function as follows: Working:…

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: Time value tells that money received today has more value than that of receiving the same value…