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kozerog [31]
3 years ago
12

To save for​ retirement, a student invests ​$60 each month in an ordinary annuity with 6 % interest compounded monthly. Determin

e the accumulated amount in the​ student's annuity after 35 years.
Business
1 answer:
professor190 [17]3 years ago
6 0

Answer:

The student invests $60 each month and the interest rate is 6%. The interest rate is compounded monthly so we will take the interest rate as 0.5% (6/12).

The number of periods will be 420 (35*12) as the payments are made every month.

The present value is 0 as he is not making any investment at the start.

We need to find the future value of these payments, and for that we need to put these values in a financial calculator

PV= 0

PMT= 60

I= 0.5

N=420

Compute FV

FV=85,482

The total accumulated amount in the students annuity will be $85,482.

Explanation:

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AURORKA [14]

Answer: a) $66,388.86

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Explanation:

Given that;

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To find the future value, we use use the express

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we substitute our values

Future Value = 150 × (((1 + 10/100)^40)-1)/10/100)

= 150 × (((1.10)^40)-1) / 0.01)

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therefore the total sum Earl will receive when he withdraws the money in his  65th birthday is $66,388.86

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A managed portfolio has a standard deviation equal to 26% and a beta of .9 when the market portfolio's standard deviation is 22%
Neporo4naja [7]

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6 0
1 year ago
Rose industries had 400 units of product ab in their inventory, costing $12 each. 600 more units of product ab were purchased fo
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