Bradley Snap has deposited $7 000 in a guaranteed investment account with a promised rate of 6% compounded annually. He plans to leave it there for 4 full years when he will make a down payment on a car after graduation. How much of a down payment will he be able to make? A $8 960.00 B) $2 175.57 C) $8 837.5 D) $30 622.2
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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Your uncle has said that if you agree to finish college he will give you equal payments of $3,500 at the end of each year for the next six years. If the annual interest rate stays constant at 4%, what is the value of these payments in today’s dollars? Round your answer to the nearest whole dollar. $15,595 $22,934 $18,347 $19,081You found out that now you are going to receive payments of $9,500 for the next 13 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 12%. What is the present value of these payments? Round your answer to the nearest whole dollar. $68,347 $92,268 $61,024 $54,678Joe plans to set aside money for his young daughter's college tuition. He will deposit money in an ordinary annuity that earns 4.8% interest, compounded quarterly. Deposits will be made at the end of each quarter. 00 E₂ How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $72,000 after 14 years? ▷ 4 Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. $ X S
- Alain Dupre wants to setup a scholarship fund for his school. The annual scholarship payment is to be $3500 with the first such payment due 4 years after his deposit into the fund. If the fund pays 9.2% compounded annually. How much most Alain deposit? He must deposit $___Suppose your parents decide to give you $10,000 to be put in a college trust fund that will be paid in equally quarterly installments over a 5 year period. If you deposit the money into an account paying 1.5% per quarter, how much are the quarterly payments (Assume the account will have a zero balance at the end of period.)• Starting next year, Moussa Al Khatib will need $10,000 annually for 4 years to complete his education. • This means that one year from today he will withdraw the first $10,000. • Moussa’s father deposits an amount today in a bank paying 5% annual interest, which will provide the needed $10,000 payments. a. How large must the deposit be? b. How much will be in Moussa’s account immediately after he makes the first withdrawal?
- You need to accumulate $92000 for your child's college education 19 years from now. How much do you need to save each year if you can earn 4 percent after taxes on your investment, assuming that you will make annual end-of-year payments into the account? O $2461.28 O $3324.75 O $3012.54 O $2725.12Check My Work еВook Starting next year, you will need $20,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $20,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $20,000 payments. a. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent. $AN INSTRUCTOR PLANS TO RETIRE IN ONE YEAR AND WANTS AN ACCOUNT THAT WILL PAY HIM P25,000.00 A YEAR FOR THE NEXT 15 YEARS. ASSUMING 6% ANNUAL EFFECTIVE INTEREST RATE, WHAT IS THE AMOUNT HE WOULD NEED TO DEPOSIT NOW? (THE FUND WILL BE DEPLETED AFTER 15 YEARS) a.P248,500.00 b.P250,400.00 c.P249,000.00 d.P242,806.00
- To help you reach a $16,000 goal 8 years fromnow, your father offers to give you $4,000 now.You plan to get a part-time job and make five additional deposits, one at the end of each year. (The firstdeposit is made at the end of the first year.) If all yourmoney is deposited in a bank that pays 6% interest,how large must your annual deposit be?Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,900 per month for twenty years. (a) How much money must she deposit if her money earns 7.8% interest compounded monthly? (Round your answer to the nearest cent.)___________ $ (b) Find the total amount that Holly will receive from her payout annuity. Thank you!Accounting 1:Kaitlyn wants to set up a fund for his son's education such that he could withdraw $2,050.00 at the beginning of every 3 months for the next 2 years. If the fund can earn 2.20% compounded semi-annually, what amount could he deposit today to provide the payment?