R = 7,500 i = 12% interest compounded semiannually for 2 years
semiannually is twice a year, soo 0.12/2= 0.06
soo then FV = 7500(1+0.06)^2= 8427 BUT that answer is not on my multiple choice PLEASE HELP Check my mistake and correct me pleaseee!!!!
i ment to make it ^4 my bad but it still doesnt come out right is there another step after I calculate that?
Okay here: Find the future value of the ordinary annuity. R = 7500 i = 12% compouned semiannualy for 2 years
It seems counter-intuitive, but when I try to solve for monthly payments on this problem, the payments are lower for the annuity that is compounded monthly.
Problem:
A debt of $25,000 is to be amortized over 7 years at an annual interest rate of 7%. Calculate the value of monthly payments (a) if interest is compounded once a year, and (b) if interest is compounded monthly.
I get $386.57 as the monthly payment for the annually compounded debt and $377.32 for the monthly payments for the debt compounded monthly.
No I won’t be spending the money. What value after 5 years
Problem …final value of an annuity?
You get 8 monthly payments of $650 starring one month from now, at 10% interest rate compounded monthly.
using : A=R((1+i)^n-1 / i
(Round to the nearest cent) $130 monthly payment, 5.5 %interest, 1 year
I have no clue how to do this and any help would be appreciated:)
I see most people choose the cash payment. Is that smarter?
well I am not a Republican and I sure as heck do not support the patriot act…
You got the wrong person on here to try and pin that on….
Your client is 40 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save 5,000 per year, and you advise her to invest it in the stock market, average return of 9%.
I figured out that at 65 she would have saved: $423,504.48. At 70 she would save: 681,537.69.
The question then asks if she expects to live for 20 years in retirement if she retires at 65 and 15 years if she retires at 70, at the same interest rate….how much could she withdraw at the end of each year after retirement at each retirement age?
I just need some help in the right direction for the final part of this problem. Thanks in advance.
Don contributes $400 at the end of each quarter to a Tax Sheltered Annuity (TSA) paying 10% annual interest compounded quarterly. Find the value of the TSA after 20 years.
After 20 years, the value of the TSA will be $ ???
( round to the nearest dollar)
What monthly payment is needed to make an ordinary annuity obtain $200,000 in 30 years at 9.75% interest?
I’ve tried reading definitions, but as I do my business finance homework, I still can’t tell when I should use the annuity table and when I should use the present value of a dollar table.
Calculate the final amount of a 20-year annuity if payments of $2000 are made at the end of every year. Interest is 8.5% compounded quarterly.