In an effort to save money for early retirement, an environmental engineer plans to deposit $1200 per month starting one month f
rom now, into a self-directed investment account that pays 8% per year compounded semiannually. How much will be in the account at the end of 25 years
1 answer:
Answer:
$1,099,203.00
Explanation:
In this question we have to find out the future value that is shown in the attachment below:
Provided that
Present value = $0
Rate of interest = 8% ÷ 2 = 4%
NPER = 25 years × 2 = 50 years
PMT = $1,200 × 6 months = $7,200
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after solving this, the future value is $1,099,203.00
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Answer:
The correct solution is "$26,000".
Explanation:
The given values are:
Cost
= $1,750,000
Salvage value
= $150,000
First Year Extraction
= 6,500
Total Extraction
= 400,000
Now,
⇒
On putting the values, we get
⇒ =
⇒ =
⇒ = ($)