You have $19,750 you want to invest for the next 22 years You are offered an investment plan that...
Question:
You have $19,750 you want to invest for the next 22 years You are offered an investment plan that will pay you 9 percent per year for the next 11 years and 13 percent per year for the last 11 years.
1: How much will you have at the end of the 22 years?
2: If the investment plan pays you 13 percent per year for the first 11 years and 9 percent per year for the next 11 years, how much will you have at the end of the 22 years?
Investment Value and Changing Interest Rates:
The value of an investment depends on the interest rate, which it earns. If the interest rate increases, the value of the investment will increase at a faster rate. If the interest rate declines, the investment value will increase at a slower rate.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer1.
Let:
- FV = future value in 22 years
- PV = present value today = $19,750
- r = first interest rate = 9%
- q = second interest rate = 13%
- n = first...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
How to Calculate Future Value: Formula & Example
from
Chapter 5 / Lesson 16
35K
Understand the definition of future value and the future value formula. Explore some examples that show how to calculate the future value of an investment.
Related to this Question
- You have $18,500 you want to invest for the next 32 years. You are offered an investment plan that will pay you 6% per year for the next 16 years and 10 percent per year for the last 16 years. a. How much will you have at the end of the 32 years? b. If t
- You have $20,000 you want to invest for the next 40 years. You are offered an investment plan that will pay you 7% per year for the next 20 years and 11% per year for the last 20 years. How much will you have at the end of 40 years? Does it matter if the
- You have $15,750 you want to invest for the next 34 years. You are offered an investment plan that will pay you 9% per year for the next 17 years and 13% per year for the last 17 years. How much will
- You have $18,500 you want to invest for the next 32 years. You are offered an investment plan that will pay you 6 percent per year for the next 16 years and 10 percent per year for the last 16 years. a. How much will you have at the end of the 32 years?
- You have $20,000 you want to invest for the next 40 years. You are offered an investment plan that will pay you 7 percent per year for the next 20 years and 11 percent per year for the last 20 years.
- You have $18,500 you want to invest for the next 32 years. You are offered an investment plan that will pay you 6 percent per year for the next 16 years and 10 percent per year for the last 16 years.
- You have $5,000 you want to invest for the next 45 years. You are offered an investment plan that will pay you 6 percent per year for the next 15 years and 10 percent per year for the last 30 years.
- You have $19,500 you want to invest for the next 24 years. You are offered an investment plan that will pay you 6 percent per year for the next 12 years and 10 percent per year for the last 12 years.
- You have $18,750 you want to invest for the next 30 years. You are offered an investment plan that will pay you 9 per cent per year for the next 15 years and 13 per cent per year for the last 15 years
- You have $16,000 you want to invest for the next 32 years. You are offered an investment plan that will pay you 8% per year for the next 16 years and 12% per year for the last 16 years. How much will
- You have $20,000 you want to invest for the next 40 years. You are offered an investment plan that will pay you 7% per year for the next 20 years and 11% per year for the last 20 years. a. How much w
- You have $17,500 you want to invest for the next 40 years. You are offered an investment plan that will pay you 6% per year for the next 20 years and 10% per year for the last 20 years. How much will
- You invest a single amount of $10,000 for 5 years at 10 percent. At the end of 5 years you take the proceeds and invest them for 12 years at 15 percent. How much will you have after 17 years?
- You plan to invest $2,000 every year (end-of-year payments) from now until you retire in 30 years. If you can earn 7% annually on your invested funds, how much will you have when you retire?
- You invest a single amount of $17,000 for 4 years at 10 percent. At the end of 4 years, you take the proceeds and invest them for 15 years at 18 percent. How much will you have after 19 years?
- You invest a single amount of $20,000 for 6 years at 7 percent. At the end of 6 years you take the proceeds and invest them for 8 years at 10 percent. How much will you have after 14 years?
- You have been offered an investment that will pay you 9 percent per year. If you invest $15,000, how long until you have $30,000?
- Suppose you want to have $2,000,000 when you retire in 30 years. Assume you will earn 8% per year on your investments. How much would you have to invest at the end of each year for the next 30 years to reach your $2,000,000 goal?
- You are told that if you invest $11,000 per year for 23 years (all payments made at the end of each year) you will have accumulated $366,000 at the end of the period. What annual rate of return is the investment offering?
- You want to start saving for retirement. If you deposit $2,000 at the end of each year for the next 60 years and earn an 11% annual rate of return on the investment, how much will you have when you retire?
- You are looking into an investment that will pay you $12,000 per year for the next 10 years. If you require a 15 percent return, what is the most you would pay for this investment?
- You are considering the purchase of an investment that would pay you $5000 per year for years 1-5, 3000 per year for years 6-8, and 2000 per year for years 9 and 10. If you require a 14% rate of retur
- You are planning for retirement 34 years from now. You plan to invest $4,200 per year for the first 7 years, $6.900 per year for the next 11 years, and $14,500 per year for the following 16 years (ass
- 1. You are planning for retirement 34 years from now. You plan to invest $4,200 per year for the first 7 years, $6,900 per year for the next 11 years, and $14,500 per year for the following 16 years (
- You invest a single amount of $10,000 for 5 years at 10%. At the end of 5 years, you take the proceeds and invest them for 12 years at 15%. How much will you have after 17 years?
- a) Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you $8,700 per year for 5 years. If the discount rate is 5 percent, what is the present value of these
- Investment X offers to pay you $7,700 per year for 9 years, whereas Investment Y offers to pay you $10,600 per year for 5 years. 1: (a) If the discount rate is 7 percent, what is the present value of
- You want to invest money for 3 years in an account that pays 7 percent interest annually. How much would you need to invest today to reach a future goal of $5,000? a. $4,650.00 b. $4,762.90 c. $6,125.22 d. $4,081.49
- 1. We have an investment of $15,000 on which we receive $1,000 yearly, as well as $20,000 7 years later. Compute the i on that investment. 2. We invest $10,000 for 10 years. We receive $14,000 10 year
- 1) We have an investment of $15,000 on which we receive $1,000 yearly, as well as $20,000 7 years later. Compute the i on that investment. 2) We invest $10,000 for 10 years. We receive $14,000 10 yea
- You are scheduled to receive $41,000 in two years. When you receive it, you will invest it for 9 more years at 7.5 percent per year. How much will you have in 11 years?
- You are scheduled to receive $43,000 in two years. When you receive it, you will invest it for 9 more years at 5.5 percent per year. How much will you have in 11 years?
- You invest in a scheme that will pay you $4000 at the end of each of the next six years, plus a lump sum payment of $40,000 when the six years are up. If this scheme boasts a 15% APR (annual percentag
- Investment X offers to pay you $4,800 per year for 9 years, whereas Investment Y offers to pay you $7,100 per year for 5 years. a) If the discount rate is 6 per cent, what is the present value of the
- I am planning on investing for retirement. I estimate that I will need $100,000 per year for twenty years. I expect to earn 6% while accumulating and 4% in retirement.. I am now 25 expecting to retire at 67 and have nothing in the plan yet, and from this
- I am planning on investing in retirement. I estimate that I will need $100,000 per year for twenty years. I expect to earn 7% while accumulating and 3% in retirement. I am now 25 expecting to retire at 70 and have nothing in the plan yet, and from this ye
- You want to start saving for retirement. If you deposit $2,000 at the beginning of each year for the next 60 years and earn an 11% annual rate of return on the investment, how much will you have when you retire?
- You are being offered an investment that will pay you (and your heirs) $16,172 per year forever, starting 16 years from now. If your discount rate on this investment is 8.1 percent, how much would you be willing to pay for it today?
- You are being offered an investment that will pay you (and your heirs) $10,868 per year forever, starting 15 years from now. If your discount rate on this investment is 6.5 percent, how much would you
- You are being offered an investment that will pay you (and your heirs) $18,891 per year forever, starting 16 years from now. If your discount rate on this investment is 7 percent, how much would you be willing to pay for it today?
- You are being offered an investment that will pay you (and your heirs) $16,964 per year forever, starting 11 years from now. If your discount rate on this investment is 8.6%, how much would you be wil
- You expect to receive $3,000 in 3 years (i.e., end of year 3). Then you plan to invest it earning 5% per year. What will you have at the end of year 8?
- Investment X offers to pay you $4,900 per year for 9 years, whereas Investment Y offers to pay you $6,500 per year for 5 years. 1: (a) If the discount rate is 5 percent, what is the present value of
- You have $4,000 to invest for the next 45 years. You are offered an investment plan that will pay you 5% per year for the next 10 years and 12% per year for the last 35 years. How much will you have a
- You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. What is the effective annual rate, EAR, at the end of 10 years if the interest is compounded annu
- You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. What is the effective annual rate, EAR, at the end of 10 years if the interest is compounded cont
- You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. What is the effective annual rate, EAR, at the end of 10 years if the interest is compounded dail
- You are scheduled to receive $14,000 in two years. When you receive it, you will invest it at 5.5 percent per year. How much will your investment be worth 10 years from now?
- 1. You are scheduled to receive $7,500 in two years. When you receive it, you will invest it at 4.5 percent per year. How much will your investment be worth ten years from now? |$10,665.75 |$11,428.
- You are scheduled to receive $6,000 in two years. When you receive it, you will invest it at 7.5 percent per year. How much will your investment be worth 8 years from now?
- You want to accumulate $1,000,000 in retirement funds by your 65th birthday. Today is your 30th birthday, and you plan on making annual investments into a mutual fund that you project will earn a 10% annual rate of return. Your first deposit will take pla
- If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and $2,000 each in year 4 and year 5. If you require a 10% annual return, should you take the investment?
- Investment X offers to pay you $6,900 per year for 9 years, whereas Investment Y offers to pay you $9,300 per year for 5 years. Requirement: If the discount rate is 21 percent, what is the present v
- You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. What is the effective annual rate, EAR, at the end of 10 years if the interest is compounded semi
- You want have $5 million when you retire in 40 years. You believe you can earn 9 percent per year on your investment. How much must you invest each year to achieve your goal when you retire?
- You want to have $5 million when you retire in 40 years. You believe you can earn 9 percent per year on your investment. How much must you invest each year to achieve your goal when you retire? (Ignore all taxes.)
- You plan to retire in 40 years and can invest to earn 6%. You estimate that you will need $38,000 at the end of each year during your 25 years of retirement. During your retirement years, you estimate you will be able to earn 5%. How much do you estimate
- You are planning on retiring for retirement 34 years from now. You plan to invest $4,200 per year for the first 7 years, $6,900 per year for the next 11 years, and $14,500 per year for the following 1
- Investment X offers to pay you $6,000 per year for nine years, whereas Investment Y offers to pay you $8,000 per year for six years. If the discount rate is 5 percent, a) what is the present value o
- Investment X offers to pay you $4,900 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years. If the discount rate is 3 percent, what is the present value of these ca
- Investment X offers to pay you $5,500 per year for 9 years, whereas Investment Y offers to pay you $7,900 per year for 5 years. If the discount rate is 5 percent, what is the present value of these ca
- Investment X offers to pay you $4,800 per year for 9 years, whereas Investment Y offers to pay you $7,200 per year for 5 years. a. If the discount rate is 4 percent, what is the present value of thes
- Investment X offers to pay you $5,100 per year for 9 years, whereas Investment Y offers to pay you $7,500 per year for 5 years. If the discount rate is 6 percent, what is the present value of these ca
- Investment X offers to pay you $5,000 per year for 9 years, whereas Investment Y offers to pay you $7,400 per year for 5 years. 1. If the discount rate is 5 percent, what is the present value of the
- Investment X offers to pay you $4,700 per year for 9 years, whereas Investment Y offers to pay you $6,800 per year for 5 years. If the discount rate is 5 percent, what is the present value of these ca
- Investment X offers to pay you $4,500 per year for 9 years, whereas Investment Y offers to pay you $6,200 per year for 5 years. If the discount rate is 7 percent, what is the present value of these c
- Investment X offers to pay you $5,300 per year for 9 years, whereas Investment Y offers to pay you $7,200 per year for 5 years. If the discount rate is 7 percent, what is the present value of these ca
- You are considering the purchase of an investment that would pay you $38 per year for Years 1-4, $79 per year for Years 5-7, and $43 per year for Years 8-10. If you require a 14% rate of return, and t
- You are considering the purchase of an investment that would pay you $57 per year for Years 1-4, $59 per year for Years 5-7, and $39 per year for Years 8-10. If you require a 14 percent rate of return
- You are offered an investment that will pay you $7,184 every year for 27 years. If you require a 7.9% return on investments with the same levels of risk, how much are you willing to invest today?
- You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. How much will you have in the account at the end of 10 years if the interest is compounded annual
- Investment X offers to pay you $4,600 per year for nine years, whereas Investment Y offers to pay you $6,700 per year for five years. Calculate the present value for Investments X and Y if the discoun
- Investment X offers to pay you $4,400 per year for nine years, whereas Investment Y offers to pay you $6,500 per year for five years. Calculate the present value for Investments X and Y if the discou
- Please explain step by step how to solve this problem. You have $19,250 you want to invest for the next 26 years. You are offered an investment plan that will pay you 7 percent per year for the next
- You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. How much will you have in the account at the end of 10 years if the interest is compounded contin
- You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. How much will you have in the account at the end of 10 years if the interest is compounded daily
- You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. How much will you have in the account at the end of 10 years if the interest is compounded semian
- You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $4500 per month. You have access to an account that pays an APR of 7.2% compounded mon
- Investment X offers to pay you $6,300 per year for 9 years, whereas Investment Y offers to pay you $9,000 per year for 5 years. Requirement 1: (a) If the discount rate is 8%, what is the present value
- You are due to receive a lump-sum payment of $1,350 in five years. If you could invest that money at 4.5 percent interest for three years, how much would it be worth eight years from now?
- You win $500,000. Do you want to be paid out all at once, or do you want to receive annual end of year payments of $33,000 for 20 years? You can earn 3% per year. What is the present value of the annuity stream?
- A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8 years. a) If they can invest at 9%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 19 years in o
- Assume you have $10,000 that you plan to invest for 5 years. How much more would you have if you invested the funds at 8% with annual compounded interest versus 8% with simple interest? No funds will be paid until the end of the fifth year.
- Investment X offers to pay you $6,000 per year, for 9 years, whereas Investment Y offers to pay you $8,200 per year, for 5 years. If the discount rate is 8%, what is the present value of these cash fl
- You want to have $2,000,000 saved by the time you retire which is in 45 years. You can invest your money a portfolio that is estimated to earn 8 percent per year. You have no money saved today but wou
- You 've been offered an investment that will pay you 9% per year. If you invest $15,000, how long until you have $30,000? How long until you have $45,000?
- You plan to start saving for your retirement by depositing $10,000 exactly one year from now. Each year you intend to increase your retirement deposit by 2%. You plan on retiring 30 years from now, and you will receive 4% interest compounded annually. Ho
- You plan to start saving for your retirement by depositing $10,000 exactly one year from now. Each year you intend to increase your retirement deposit by 2%. You plan on retiring 30 years from now, and you will receive 4% interest compounded annually. \\
- Investment X offers to pay you $4,300 per year for 9 years, whereas Investment Y offers to pay you $6,100 per year for 5 years. If the discount rate is 6 percent, what is the present value of these cash flows?
- Investment X offers to pay you $7,300 per year for 9 years, whereas Investment Y offers to pay you $9,800 per year for 5 years. If the discount rate is 23 percent, what is the present value of these cash flows?
- Investment X offers to pay you $7,300 per year for 9 years, whereas Investment Y offers to pay you $9,800 per year for 5 years. If the discount rate is 5 percent, what is the present value of these cash flows?
- You are going to retire 30 years from now and plan to live for another 25 years. You can earn 8% on your investment for the next 55 years. You just deposited $15,000 into the investment account. You w
- In doing some retirement planning you determine that you want to save $25,000 each year until you retire. You plan to invest it in a "guaranteed return mutual fund" which pays compound interest at 4
- You want to invest your savings of $30,000 in government securities for the next 2 years. Currently, you can invest either in security that pays interest of 8.4 percent per year for the next 2 years or in security that matures in 1 year but pays only 5.8
- My son expects to receive $50,000 at graduation one year from now. He plans on investing it at 7.5 percent until the value gets at $150,000. How long it will take from now? a.14.69 years b. 14.77 year
- You read the following ad in the paper: Invest $1,000 each year for ten years with us and then after that we give you $1,000 each year for life. What is the return on this investment proposal? Does ag
- You plan to invest $20,000 today and you can earn 7% per year on the money. How long will it take for your investment to grow to $100,000?
- You want to retire in 10 years. You can earn 8% APR on your investments. If you save $500 per month (first payment today), what is the future value of your investment?
- Your investment goal is to have $3,000,000 in 40 years for retirement. You decide to invest in a mutual fund today that pays 12% per year compounded monthly. How much must you invest at the end of each month to meet your investment goal?
- You are being offered an investment that will pay you (and your heirs) $14,330 per year forever, starting 16 years from now. If your discount rate on this investment is 5.6 percent, how much would you
Explore our homework questions and answers library
Browse
by subject