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23 Nov 2019

How much would you need to deposit now in a savings account that earns 5% interest, compounded annually, in order to withdraw $5,000 at the end of every year for ten years

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Reid Wolff
Reid WolffLv2
26 Oct 2019
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Related questions

7. Calculating interest earned and future value of savings account. If you put $6,000 in savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future valur formula.) How much interest will you earn during the five years? If you put $6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?

Russ invests $5,000 in a three-year certificate of deposit (CD) that earns 10% compounded annually. How much money will Russ receive at the end of the three years? ?

A) Calculate the amount by using simple multiplication.

B) Calculate using the future value formula FV = PV (1+i)n

C) Calculate using the TVM table. In all cases show your work

If you need $8000 to travel to Europe after you graduate in 4 years.  How much would your monthly deposits need to be if your account earns interest at 5% compounded monthly?

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