You are planning to make monthly deposits of $300 into a retirement account that pays 8 percent interest compounded monthly. If
your first deposit will be made one month from now, how large will your retirement account be in 25 years?
1 answer:
Answer:
The correct answer is $285.308.1
Explanation:
According to the scenario, computation of the given data are as follows:
Monthly payment (Pmt) = $300
Interest rate = 8%
Interest rate (monthly) (rate) = 8% ÷ 12 = 0.666667%
Time period = 25 years
Time period (monthly) (Nper) = 25 × 12 = 300
So, we can calculate the Future value by using Financial calculator.
The attachment is attached below:
Future value = $285,308.1
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Answer:
90%
Explanation:
Let x be the total number of matches,
Given,
80% of games were finished,
So, the number of finished games = 80% of x = 0.8x
∴ Remained games= x - 0.8x = 0.2x
Now, 40% of 80% of games were won,
So, the winning games in 0.8x matches = 40% of 0.8x
= 0.4 × 0.8x
= 0.32x
In order to finish games with the same number of wins as losses,
Winning percentage in all games must be 50%,
Thus, the total winning games = 50% of x = 0.5x
Let y be the winning percentage in 0.2x games,
So, the total winning games in 0.2x games =
∵ Number of winning matches in 80% games + number of winning matches in 20% = total winning matches
⇒
Hence, the percent of winning the in the remaining games must be 90%.
Answer:
33.8%
Explanation:
Purchase price of the bond will be computed using the formula below.
where A = annual coupon = 10% * 1000 = 100
r = yield to maturity = 0.1384
n = time to maturity = 20 years
F = face value = $1,000
p = price of the bond.
Therefore, if Janet sold the bond a year later for $994.79,
the profit on sale =
= 33.8% profit (rate of return).