This exercise compares the future value of investing an amount of money in different time frames....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
This exercise compares the future value of investing an amount of money in different time frames. A total of $20,000 is invested into funds paying 5% interest over a 20-year period. Compute the future value at the end of 20 years for each of the following: (Round your final answers to two decimal places.) (a) $1000 is invested in an annuity each year for 20 years. $ (b) $2000 is invested in an annuity each year for 10 years. After the first 10 years, the money remains in the fund, drawing 5% interest compounded annually. $ (c) The entire $20,000 is invested at the beginning and remains in the fund, drawing 5% interest compounded annually. $ This exercise compares the future value of investing an amount of money in different time frames. A total of $20,000 is invested into funds paying 5% interest over a 20-year period. Compute the future value at the end of 20 years for each of the following: (Round your final answers to two decimal places.) (a) $1000 is invested in an annuity each year for 20 years. $ (b) $2000 is invested in an annuity each year for 10 years. After the first 10 years, the money remains in the fund, drawing 5% interest compounded annually. $ (c) The entire $20,000 is invested at the beginning and remains in the fund, drawing 5% interest compounded annually. $
Expert Answer:
Answer rating: 100% (QA)
To compute the future value at the end of 20 years for each scenario well use the future value of an annuity formula and the future value of a ... View the full answer
Posted Date:
Students also viewed these finance questions
-
This exercise compares the future value of investing an amount of money in different time frames. A total of 560,000 is invested into funds paying 6 interest over a 20- year period. Compute the...
-
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...
-
Use lHospitals rule where applicable to find each limit. lim In(ex + 1) 5x
-
Refer back to the experiment in Exercise 22. Instead of Total counts, redo the analysis using log (Total counts) as the response. Do your conclusions change? How? Are the assumptions of the model...
-
Assume that you are Cochran's assistant and that you must help her answer the following questions for Meissner: a. What effect did the expansion have on sales and net income? What effect did the...
-
Discuss the most appropriate bootstrapping methods that could be used by a newly created janitorial business.
-
Early in September 1983, it took 245 Japanese yen to equal $1. More than 20 years later that exchange rate had fallen to 108 yen to $1. Assume the price of a Japanese-manufactured automobile was...
-
Provide one sentence that catch people's attention about eating healthy foods. What is your main message of eating heathy diet: What are the topics or main points that need to discuss about eating...
-
0.1012 M H2SO4 in 10.00 mL of solution requires 23.31 mL of NaOH for neutralization. What is the molarity of the NaOH?
-
Write a sub-query that returns all orders placed on the last day of activity that can be found in the Orders table. Include the orderid, orderdate, customerid, and the employeeid. #2: SUB-QUERY -...
-
Every home football game for the past 8 years at Southwestern University has been sold out. The revenues from ticket sales are significant, but the sale of food, beverages, and souvenirs has...
-
Public financial management ( PFM ) has been narrowly defined to cover the budget cycle, which typically centers around ( 1 ) budget formulation; ( 2 ) budget execution; ( 3 ) accounting and...
-
On 1 5 October 2 0 1 9 , the board of directors of MAA Bhd decided to close down one of its overseas divisions due to continuous losses. For this reason, a detailed plan was drafted and all costs...
-
Lusanda. When the parties married, Sipho had no assets apart from his interest in his pension fund, valued at R50 000. He had started a new business and had an outstanding loan of R100 000. Lusanda...
-
1. The purpose of a cash flow statement is to a) Show the profits generated b) Show how cash was generated and used during a period c) Show the expenses incurred in doing business d) Show the revenue...
-
Listed below are common types of current liabilities, contingencies, and commitments: a. Accounts payable b. Bank loans and commercial paper c. Notes payable d. Dividends payable e. Sales and excise...
-
Calculate the CGT payable in relation to each of the following disposals, assuming in each case that the annual exemption is fully utilised against other gains, that there are no allowable losses and...
-
Mick Stone disposed of the following assets during tax year 2023-24: (1) On 19 May 2023, Mick sold a freehold warehouse for 522,000. This warehouse was purchased on 6 August 2011 for 258,000, and was...
-
In October 2012, Matthew bought a piece of rare porcelain for 10,000. The porcelain was damaged in early 2019 and in February of that year Matthew spent 3,850 on restoration work. In July 2019,...
Study smarter with the SolutionInn App