User Account

All Pages

What is the effective annual rate if interest is compounded

Assignment Help Finance Basics
Reference no: EM132466844

Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 71.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 71.0 when he fully retires, he will begin to make annual withdrawals of $160,997.00 from his retirement account until he turns 92.00. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 6.00% interest rate. Answer format: Currency: Round to: 2 decimal places.

Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 71.00. During these years of part-time work, he will neither make deposits to nor take withdrawals from his retirement account. Exactly one year after the day he turns 71.0 when he fully retires, he will begin to make annual withdrawals of $165,565.00 from his retirement account until he turns 89.00. After this final withdrawal, he wants $1.27 million remaining in his account. He he will make contributions to his retirement account from his 26th birthday to his 65th birthday. To reach his goal, what must the contributions be? Assume a 5.00% interest rate. Answer format: Currency: Round to: 2 decimal places.

A bank offers 10.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually? Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

A bank offers 9.00% on savings accounts. What is the effective annual rate if interest is compounded quarterly? Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

A bank offers 4.00% on savings accounts. What is the effective annual rate if interest is compounded monthly? Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434))

Reference no: EM132466844

Questions Cloud

Managing operating exposure : The key to managing operating exposure at the strategic level is for management to recognize a disequilibrium in parity conditions when it occurs
Compute the present value and future value : You are deciding between two projects, both with discount rates of 5%. Compute the present value and future value for each project - which do you prefer?
Discuss about creating good password security : Learn About creating good password security. An IT Security consultant has made three primary recommendations regarding passwords: Prohibit guessable passwords.
What is the future value of 1000 dollars received : If the interest rate is 5 percent (r = 0.05), what is the future value of 1000 dollars received now in one year? Two years? Three years? Why?
What is the effective annual rate if interest is compounded : A bank offers 10.00% on savings accounts. What is the effective annual rate if interest is compounded semi-annually?
What sort of attacks might take place : You are the web master for the Republican Party National Committee. Prepare a risk assessment analysis for your website. Some questions to consider: What sort.
Describe five network penetration testing techniques : Do a bit of research on penetration testing techniques. Investigate and document the following: Five network penetration testing techniques.
Compare and contrast frye and bartky accounts of oppression : Compare WWI to WWII, identifying similarities in the causes, development, and outcomes of the wars. what are the major differences in their poetry?
Create a chart displaying that spending for each category : Create a chart displaying that spending for each category. Show the security clearance level for each employee and any other pertinent information.

Reviews

Write a Review

Finance Basics Questions & Answers

  1nbsp explain the logic behind the establishment of the

1.nbsp explain the logic behind the establishment of the gold standard.nbsp why did the gold standard finally come to

  Discuss about the net operating working capital

Prezas Company's balance sheet showed total current assets of $3,500, all of which were required in operations. Its current liabilities consisted.

  How many directors can baker elect

Mr. Michaels controls proxies for 50,000 of the 92,000 outstanding shares of Northern Airlines. Mr. Baker heads a dissident group that controls the remaining.

  Planning to deposit

You are planning to deposit $1500 at the end of each year for the next 10 years. If your bank pays 7% interest per annum on your account, how much money will you have at the end of the ten years?

  Estimating wacc using given data

Rollins Corporation is estimating its WACC. It's current and target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common.

  Constant growth rate in dividends

Firm T stock currently sells for $51.18 per share. The market requires a 9 percent return on the firm's stock, and the most recent annual dividend

  What are some limitations of internal controls

What is separation of duties? List internal control procedures related to e-commerce. What are some limitations of internal controls?

  A fictitious producer and supplier of fuel that owns

ig Oil Petroleum is a fictitious producer and supplier of fuel that owns several oil refineries in the United States and abroad. They are currently considering several potential projects. For each of the projects listed below, please determine if a f..

  Converting the mortgage mey to equivalent bey

Compute your answer based on coupon equivalent yield, converting the mortgage MEY to its equivalent BEY.

  What are some of techniques we can use in capital budgeting

What are some of the techniques we can use in capital budgeting decision models? provide some examples. What are some of the techniques we can use to estimate the intrinsic value of stock (or asset)?

  Learned about strategy execution

Please discuss the importance of Resource Allocation and Budgeting in strategy execution?

  Discuss the mistakes made by arthur anderson

Discuss the mistakes made by Arthur Anderson and potential actions that leadership could have taken to prevent the organizational failure.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd