## Question

###### To motivate individuals to start saving at an early age, financial planners will sometimes present the...

To motivate individuals to start saving at an early age, financial planners will sometimes present the results of the following type of calculation. How much must a 25-year-old individual invest five years from now to have the same maturity value at age 55 as an immediate investment of $1,000? Assume that both investments earn 8% compounded annually. (Round your answer to the nearest cent.) Amount invested $

## Answers

Amount invested

$ 1,469.33

Step-1:Calculation of future value of investment nowFuture value = P * (1+i)^n Where, = $ 1,000 * (1+0.08)^30 P = $ 1,000 = $ 1,000 * 10.06266 i = 8% = $ 10,062.66 n = 30 Step-2:Calculation of investment value 5 years from now for same future value as aboveInvestment value 5 years from now = F * (1+i)^-n Where, = $ 10,062.66 * (1+0.08)^-25 F = $ 10,063 = $ 10,062.66 * 0.146018 i = 8% = $ 1,469.33n = 25

#### Similar Solved Questions

1 answers

##### WileyPLUS Assignment> Open Assignment BACK Chapter 03, Problem 021 a Chapter 03. Concept An ant, crazed...

WileyPLUS Assignment> Open Assignment BACK Chapter 03, Problem 021 a Chapter 03. Concept An ant, crazed by the Sun on a hot Texas afternoon, darts over an xy plane scratched in the dirt. The x and y components of four consecutive darts are the following, all in centimeters: (27.0, 36.0). (b, -72....

1 answers

##### II- Given 2 brass specimens with initial dimensions as follo Specimen #1: rectangular cross-section (12 x...

II- Given 2 brass specimens with initial dimensions as follo Specimen #1: rectangular cross-section (12 x 20 mm) Specimen #2: circular cross-section (0 = 15 mm) Both specimens were cold worked until the final cross-sectia a) (6) Calculate the percentage of cold work for both specin...

1 answers

##### 1. Police sometimes measure shoe prints at crime scenes so that they can learn something about...

1. Police sometimes measure shoe prints at crime scenes so that they can learn something about criminals. Listed below are shoe print lengths, foot lengths, and heights of males. Construct a scatterplot, find the value of the linear correlation coefficient r, and find the...

1 answers

##### A modified oscilloscope is used to perform an electron interference experiment. Electrons are incident on a...

A modified oscilloscope is used to perform an electron interference experiment. Electrons are incident on a pair of narrow slits 0.052 0 um apart. The bright bands in the interference pattern are separated by 0.400 mm on a screen 14.5 cm from the slits. Determine the potential difference through whi...

1 answers

##### I need help with this, provide clear answers, please. Thanks in advance. By gain compensation, the...

I need help with this, provide clear answers, please. Thanks in advance. By gain compensation, the following system operates with a 19.3% overshoot when K- 281.69, Design a lead compensator to reduce the percentage overshoot to 10% and reduce the settling time by 1 sec. R(s) C(s) 4 +6)s +8) (c) Fil...

1 answers

##### If y varies inversely as x and y = 40 when x = 16, how do you find y when x = 10?

If y varies inversely as x and y = 40 when x = 16, how do you find y when x = 10?...

1 answers

##### 1. The energy balance model as a function of latitude (x) can be written as: S(x)[1...

1. The energy balance model as a function of latitude (x) can be written as: S(x)[1 - a(x)]-[A+BT(x)] = [T(x)-T] (1) The meanings of the these terms are as follows: a) The 1st term on the left hand side is the incoming solar insolation (S) modulated by albedo (a). Note that the factor 44 has already...

1 answers

##### Formulate an "order of magnitude" rule of thumb for linear expansion of metals: "A meter length...

Formulate an "order of magnitude" rule of thumb for linear expansion of metals: "A meter length metal rod lengthens by about ____mm for a temperature rise of 100 degrees C...

1 answers

##### How do you write "the quotient of a number and 8" as an algebraic expression?

How do you write "the quotient of a number and 8" as an algebraic expression?...

1 answers

##### Can you do the PSpice? Thank you 2) Refer to the handout and use the series...

Can you do the PSpice? Thank you 2) Refer to the handout and use the series RC circuit in Fig. 1 Analytically solve the capacitor current and voltage outputs.Explain the circuit operation by interpreting the equations Use PSpice to obtain the transient responses of the voltage and current signals...

1 answers

##### King Corporation started the construction of a building during 2017 at a contract price of $5,000,000....

King Corporation started the construction of a building during 2017 at a contract price of $5,000,000. The contract to build was non-cancellable and they managed to complete the project in 2019 as anticipated. Billings are nonrefundable and under the terms of the project, King sends billings to the ...

1 answers

##### 14. In the computation of the cost per equivalent unit, the weighted average method of process...

14. In the computation of the cost per equivalent unit, the weighted average method of process costing considers all the costs A) entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period B) that have entered work in pro...

1 answers

##### Buck is planning to save $63.65 every six months for 7 years. He plans to make...

Buck is planning to save $63.65 every six months for 7 years. He plans to make his first savings contribution later today. If he currently has $423.73 saved and expects to have $2,125.26 in 7 years from today, then what is the EAR that he expects to earn? Answer as a rate in decimal format so that 1...

1 answers

##### Lab Exercise 14 4. Lane 4, the undigested plasmid, may contain more than one band. Discuss...

Lab Exercise 14 4. Lane 4, the undigested plasmid, may contain more than one band. Discuss some possi reasons why there would be more than one hand if no restriction enzymes were used 5. Why do you think the migration distance and size estimates are different for fragments 1 and 2 compared to the su...

1 answers

##### One year ago Sam purchased bonds for $100,000. He just sold them for $120,000. During the...

One year ago Sam purchased bonds for $100,000. He just sold them for $120,000. During the year the price level rose by 5%. If the tax rate on capital gains is 20%, how much did Sam gain in real terms?...

1 answers

##### Explain what the duties are of the surgical technologist in case of cardiac arrest during surgery,...

Explain what the duties are of the surgical technologist in case of cardiac arrest during surgery, natural disasters, and man-made disasters. nt...

1 answers

##### Ings that were popular at the time of this writing. Find the (a) mean, (b) median...

ings that were popular at the time of this writing. Find the (a) mean, (b) median (c) mode, and (d) midrange for the given sample data. Is there one time that is very different from the others? 447 238 228 250 250 291 277 230 246 217 266 243 217 258 255 254 a. The mean is seconds. (Round to one deci...

1 answers

##### MBA 6100 Case Study 1 Spring 2019 Block 2 As a recently hired MBA intern, you...

MBA 6100 Case Study 1 Spring 2019 Block 2 As a recently hired MBA intern, you are working in a consulting capacity to provide an analysis for Al Dente's Italian Restaurant. A financial income Statement is presented below: Sales $4,640,560 Cost of sales (all variable) $2,679,008 Gross Margin $1,9...