Please help me, and please do not make a download, because I cannot download anything on my computer. THank you!!!

How Much Have I Saved? Portfolio

avanturin [10]

The time value of money calculation can be performed using formula equations or online calculators.

The correct responses are;

1) Option 3

2) Option 2

3) The difference in principal is approximately $8,000

The difference in interest earned is approximately $2,977.87

4) It is better to invest more money at the beginning of the 30 years

Reasons:

Option 1: Present value = 0

Amount invested per month, A = $25/month

The Annual Percentage Rate, APR, r = 3.25%

Number of years = 30

The future value of an annuity is given by the formula;

$\displaystyle FV_{A} = \mathbf{A \cdot \left (\frac{ \left(1 + \frac{r}{m} \right)^{m\cdot t} - 1}{\frac{r}{m} } \right)}$

In option 1, m = 12 periods per year

Therefore;

$\displaystyle FV_{A} = 25 \times \left (\frac{ \left(1 + \frac{0.0325}{12} \right)^{12 \times 30} - 1}{\frac{0.0325}{12} } \right) \approx \mathbf{15,209.3}$

Contribution = $25 × 12 × 30 = $9,000

Total interest earned = $15,209.3 - $9,000 = $6,209.3

Final balance = $15,209.3

Option 2: Present value = 0

Amount, A = $75/quarter

m = 4 periods per year

The Annual Percentage Rate, APR = 4.00%

Therefore;

The effective interest rate is therefore;

$\displaystyle r_{eff} = \left(1 + \frac{0.04}{4} \right)^4 - 1 \approx \mathbf{0.04060401}$

$\displaystyle FV_{A} = 75 \times \left (\frac{ \left(1 + \frac{0.04060401}{4} \right)^{4 \times 30} - 1}{\frac{0.04060401}{4} } \right) \approx 17,437.7$

Using an online calculator, FV = $17,467.04

Contribution = $75 × 4 × 30 = $9,000

Total interest earned = $17,467.04 - $9,000 = $8,467.04

Final balance = $17,467.04

Option 3: Present value = $1,000

APR = 6.25%

m = 12 period per year

Number of years, t = 30 years

Therefore;

$\displaystyle FV = \left (1 + \frac{0.0625}{12} \right)^{12 \times 30} \approx \mathbf{6,489.17}$

Contribution = $1,000

Total interest earned = $6,489.17 - $1,000 = $5,489.17

Final balance = $6,489.17

The table of values is therefore;

$\begin{tabular}{|c|c|c|c|}Option \# &Contribution &Total Interest Earned&Final Balance\\1&\$9,000&\$6,209.3 & \$15,209.3\\2&\$9,000&\$8,467.04 &\$17,467.04\\3&\$1,000&\$5,489.17&\$6,489.17\end{array}\right]$

1) The option that has the least amount invested are option 3

Option 3 investment plan is a present value of $1,000, invested for 30 years at 6.25% APR compounded monthly.

2) Option 2 yielded the highest amount at the end of 30 years, given that the APR is higher than the APR for option 1, although the amount invested over the period are the same.

The basis of option 2 investment plan is $75 invested quarterly at 4.00% APR compounded monthly for 30 years.

3) The difference in the principal invested for the highest and lowest final balance is $9,000 - $1,000 = $8,000

The difference in the interest earned is; $8,467.04 - $5,489.17 = $2,977.87

4) In option 1 the present value is zero, therefore zero amount was invested at the beginning.

The interest to investment ration is 6,209.3:9,000 ≈ 0.7:1

In option 3, all the money was invested at the beginning.

The interest to investment ratio of option 3 is; 5,489.17:1,000 ≈ 5.5:1

Given that the interest to investment ratio, which is the return on investment is larger when more money is saved at the beginning as in option 3, it is better to invest more money at the beginning.

Learn more about future value of an annuity here:

brainly.com/question/8243704

3 0

2 years ago

Hi pls help answer this!

Morgarella [4.7K]

Answer:

363-138=-5x

Step-by-step explanation:

Let c = cost

We know that the total cost is $363:

363-??????

We also know that he spent $138 on parts:

363-138?????

And we are solving for the cost of labor per hour:

363-138=5x

We can use this equation to find the total cost of labor per hour.

Hence, your equation will be 363-138=5x

7 0

1 year ago

Mason and Nora decided to swim across the river. Mason began swimming 7.7 seconds earlier than Nora. Mason swam at a speed of 5

user100 [1]

Let d be distance travelled when they are level , and t = time that nora took to get level with mason for Nora 6 = d/t d = 6t for Mason 5 = d / (t + 35) d = 5 ( t + 350 so 6t = 5(t + 35) solve for t

7 0

2 years ago

Jim began a 165 mile bicycle trip to build up stamina for a triathlete competition unfortunately his bike chain broke so he fini

denpristay [2]

Answer: Approximately 4.7 hours.

Step-by-step explanation:

He rode the bicycle for some time before it broke down and he walked the remaining distance. This means that Jim covered a total of 165 miles by riding at a speed of 35 miles per hour and walking at a speed of 3 miles per hour.

Let x = the distance covered by riding the bicycle.

Let y = the distance covered by walking.

Time = distance /speed

Time he used in riding would be x/35

Time he used in walking would be y/3

Since the entire trip took 7 hours,

x/35 + y/3 = 7

3x + 35y = 735 - - - - - - - - 1

Total miles covered is 165. Therefore,

x + y = 165 - - - - - - - - -- - -2

Substituting x = 165-y into equation 1, it becomes

3(165-y) + 35y = 735

495-3y + 35y = 735

-3y + 135y = 735-495

132y = 240

y = 240/132

y = 1.81m

x = 165 - 1.81 = 163.19

Amount of time that he spent on the bicycle will be

x/35 = 163.19/35

= 4.66

Approximately 4.7 hours.

7 0

3 years ago

(30 POINTS) The 20% off sale is a better deal than the $200 rebate or $150 coupon for the $1,500 dining set. The Porters budgete

Ratling [72]

Yes, the Porters are under budget. The 20% off sale is the best deal because $1,500 times 0.20 is $300. $300 is a bigger discount than the $150 coupon and $200 rebate. $300 off $1,500 is $1,200, which is less than the amount budgeted.

4 0

2 years ago

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