Suppose you deposit $550 per month in a mutual fund that is expected to bear 9% interest compounded monthly. If you do this faithfully, how much will your account be worth after 27 years? Round your answer to the nearest whole number.
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Suppose you deposit $550 per month in a mutual fund that is expected to bear 9% interest compounded monthly. If you do this faithfully, how much will your account be worth after 27 years? Round your answer to the nearest whole number.
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Assume that investing $500 in a fund today will give you a return of $530 a year later. On the other hand, your bank can give you a rate of interest of 7.5% compounded annually. Will you choose to invest in the fund?
- Suppose you invest $8,000 in a mutual fund in one year and $9,500 in two years. If the fund pays 7% annual interest, how much will you have in three years? How much will you have in 7 years if you make no further deposits?Suppose an investment will pay $21,000 in 29 years from now. If you can earn 11.35% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Suppose your client wishes to purchase an annuity that pays $80,000 each year for 6 years, with the first payment 4 years from now. At an interest rate of 8%, how much would the client need to invest now? Please round your answer to the nearest hundredth.
- Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be in your bank account at the end of the twentieth year if the deposits earned an annual rate of return of 4% each year?Answer:$29,778.0786 will be in the account after 20 years. Question: Repeat above question for annuity due.Suppose an investment will pay $21,000 in 19 years from now. If you can earn 16.35% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.suppose you have $5,000 in a mutual fund in your IRA. Suppose also that you put $4,000 into the mutual fund at the end of each year over the next 20 years. if the mutual fund earns 8.5% annually, how much will it be worth after 20 years?
- Suppose an investment will pay $11,000 in 26 years from now. If you can earn 13.30% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choicesSuppose an investment will pay $25,000 in 39 years from now. If you can earn 11.05% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today? Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.At the end of each of the next 8 years, you planto put $25,000 of your annual salary in thebank. If the annual interest rate is 3%, what isthe present value of this planned savingsstream? What will the balance in your bankaccount be at the end of the 8 year period?