Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you just celebrated your 25th birthday today. you

You just celebrated your 25th birthday today. You plan to invest $2000 annually, with the first...

Free

70.2K

Verified Solution

Question

Finance

You just celebrated your 25th birthday today. You plan to invest$2000 annually, with the first $2000 invested on your 26th birthdayand the last invested on your 60th birthday.

What is the value of this investment on your 61st birthday ifall invested funds earn 6 percent annually?

Answer & Explanation Solved by verified expert
4.4 Ratings (887 Votes)

Ans: $ 222,869.55

Years Annuity payment(A) future value factor(B) future value factor Future value(A*B)
1 26 2000 7.251025276 (1.06)^34 14502.05055
2 27 2000 6.840589883 (1.06)^33 13681.17977
3 28 2000 6.453386682 (1.06)^32 12906.77336
4 29 2000 6.088100643 (1.06)^31 12176.20129
5 30 2000 5.743491173 (1.06)^30 11486.98235
6 31 2000 5.418387899 (1.06)^29 10836.7758
7 32 2000 5.111686697 (1.06)^28 10223.37339
8 33 2000 4.822345941 (1.06)^27 9644.691881
9 34 2000 4.549382963 (1.06)^26 9098.765926
10 35 2000 4.29187072 (1.06)^25 8583.741439
11 36 2000 4.048934641 (1.06)^24 8097.869283
12 37 2000 3.819749662 (1.06)^23 7639.499323
13 38 2000 3.603537417 (1.06)^22 7207.074833
14 39 2000 3.399563601 (1.06)^21 6799.127201
15 40 2000 3.207135472 (1.06)^20 6414.270944
16 41 2000 3.025599502 (1.06)^19 6051.199004
17 42 2000 2.854339153 (1.06)^18 5708.678306
18 43 2000 2.692772786 (1.06)^17 5385.545572
19 44 2000 2.540351685 (1.06)^16 5080.703369
20 45 2000 2.396558193 (1.06)^15 4793.116386
21 46 2000 2.260903956 (1.06)^14 4521.807912
22 47 2000 2.13292826 (1.06)^13 4265.85652
23 48 2000 2.012196472 (1.06)^12 4024.392944
24 49 2000 1.898298558 (1.06)^11 3796.597117
25 50 2000 1.790847697 (1.06)^10 3581.695393
26 51 2000 1.689478959 (1.06)^9 3378.957918
27 52 2000 1.593848075 (1.06)^8 3187.696149
28 53 2000 1.503630259 (1.06)^7 3007.260518
29 54 2000 1.418519112 (1.06)^6 2837.038225
30 55 2000 1.338225578 (1.06)^5 2676.451155
31 56 2000 1.26247696 (1.06)^4 2524.95392
32 57 2000 1.191016 (1.06)^3 2382.032
33 58 2000 1.1236 (1.06)^2 2247.2
34 59 2000 1.06 (1.06)^1 2120
35 60 2000 1 1 2000
222869.5597

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

You just celebrated your 25th birthday today. You plan to invest$2000 annually, with the first $2000 invested on your 26th birthdayand the last invested on your 60th birthday.What is the value of this investment on your 61st birthday ifall invested funds earn 6 percent annually?

Other questions asked by students

Q

Question 2: A club has 20 members. Five are seniors, four are juniors, two are sophomores...

Basic Math
Q

You wish to test the claim that fewer than 33% of households in a certain city...

Statistics
Q

When activity times are known with certainty, the critical path is defined as the set of...

General Management
Q

explain how to detect assignable causes of variation using probability paper

Basic Math
Q

The one-to-one function fis defined below.f(x)=(x-9)Find f-(x), where f- is the inverse of f.

Basic Math
Q

y e x 28 23 37 a Solve out for the values of y x...

Algebra
Q

Formula labels .... A Contribution margin B Labor costs C Operating income D Revenue E...

Accounting
Q

units to he sold are a part of the A. sales budget B. production budget...

Accounting
Q

During October, McCafe'soid 110 unts of its product at $22 per unit. Determine COGS if...

Accounting
Q

On December 31, 2023, Jen \& Mink Clothing (J\&M) performed the inventory count and determined...

Accounting
Q

Which of the following industries most closely approximates the perfectly competitive model? (a) Automobile, (b)...

Accounting
Q

The Sunshine Of Company bwys crude vegetable oil. Rotring this of results in tow products...

Accounting