Please also show me the equation you used to get the answer. I’m stumped:
You plan to deposit $250 in a savings account for each of 5 years starting 1 year from now. The interest rate is 9 percent compounded annually. What is the future value at the end of 5 years? Financial tables have been attached to assist your calculations.
a.$1,250
b.$1,496
c.$1,924
d.$1,363
What are some of the effects of using compound interest when evaluating future value transactions and calculations
I just started using a TI83 plus and I am currently doing a lot of exponential functions and formulas like the exponential growth formula, compound interest formula, present value formula, and etc, and I was wondering if there is a way to program these in for quick reference? (So I don’t have to keep looking up the formula’s, its a lot to remember!)
Thanks for any tips on this!
A = $11,800
i = 0.067
n = 108 (round to the nearest cent)
7. What would be the amount of compound interest on 8,000 inversted for two years at 12%, compounded semiannually? Round your answer to the nearest dollar.
8. What is the future value of an ordinary annuity of $23,000 per year, for three years, at 10% interest compounded annually?
9. A family recently purchased a home, taking out a morgage of $90,000 at 8 1/4% for 20 years. The annual property taxes on the home are $1,980, nad the annual hazard insurance premium is $636. What is the monthly PITI payment of their loan?
10. What is the total amount of tax due on a property with an assessed valus of $109,400? The property tax rate is 35.4 mills.
“DAILY”
What is the future value of $27,000 in present value funds that compound at an annual rate of 6% for 10 years
Use the compound interest formula to compute the future value of the investment.
$ 15,000 at 8% compounded annually for 12 years.
I have a math test tomorrow (Finite) I am still confused as when to use the formulas using compound interest and Future Value.
For example this question asks:
Find the future value of a13-year annuity due with payments of $2,900 at an annual compound interst rate of 4.5%.
Not sure if I should use A=P(1+i)^n or FV=PMT(1+i)^n-1 over i
At the age of 20 you decide to open an IRA annuity account. Looking ahead you decide to that you will retire at the age of 65. you figure you will need $1500 per month for living expenses. You will need to maintain this level of income until you turn 85.
The Problem:
You plan to make deposits into the account until age 65. at the age of 65, you will stop making deposits and start to make withdrawls of $1500 per month until you withdraw the last of the money at the age of 85. The account will earn 6% compunded monthly. HOW MUCH MUST YOU DEPOSIT EACH MONTH , STARTING AT THE AGE OF 20, TO ENSURE THAT THERE WILL BE ENOUGH MONEY TO MAKE THE WITHDRAWLS UNTIL YOU REACH THE AGE OF 85.
at the beginning of each period, for 27 years. What is the cash value of this annuity due at the end of 27 yrs?
CAN SOMEONE EXPLAIN IN DETAIL THE CONCEPT OF FUTURE VALUE OF ORDINARY ANNUITY = PAYMENT (COMPOUND INTEREST FACTOR). Also I would like the correct formula.