4. Jeff deposits X into a fund today and 100 fifteen years later. Interest is credited...

Question

Question

4. Jeff deposits X into a fund today and 100 fifteen years later. Interest is credited at a nominal annual discount rate of 4

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

cash flow diagram 400 100 value = x (1+0.04s) *°. (+0.06 ) * *2* - 5.1030568 Future value of 100 = 100 006 12x 15 = 242.7262

Please do rate me and mention doubts in the comments section.

Add a comment

Answer 2

Similar Homework Help Questions

4. Jeff deposits X into a fund today and 100 fifteen years later. Interest is credited...

4. Jeff deposits X into a fund today and 100 fifteen years later. Interest is credited at a nominal annual discount rate of 4.5% compounded quarterly for the first 10 years, and at a nominal annual interest rate of 6% compounded semiannually thereafter. The accumulated balance in the fund at the end of 30 years is 400. Calculate X. Give your answer rounded to the nearest whole number. Answer:
Eric deposits 200 into a fund today and 400 twenty years later. Interest for the first...

Eric deposits 200 into a fund today and 400 twenty years later. Interest for the first ten years is credited at a nominal interest rate of 8% compounded quarterly, and thereafter at nominal discount rate of d compounded semiannually. The accumulated value in the fund at the end of thirty years is 4552. Calculate d.
Gloria deposited $100 into a fund and $200 ten years later. Interest is credited at a...

Gloria deposited $100 into a fund and $200 ten years later. Interest is credited at a nominal discount rate of d compounded quarterly for the first 10 years, and at a nominal interest rate of 5% compounded quarterly thereafter. The accumulated balance in the fund at the end of 25 years is $1000. Calculate d.

Jeff puts $100 into a fund that pays an effective annual rate of discount of 20%...

Jeff puts $100 into a fund that pays an effective annual rate of discount of 20% for the first two years and the force of interest δt = (2t)/(t^2+8), 2 ≤ t ≤ 4 for the next two years. At the end of four years, the amount in Jeff’s account is the same as what it would have been if he put $100 into an account paying interest at the nominal rate of i per annum compounded quarterly for four...
QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment include...

QUESTION 4 You are given two loans, with each loan to be repaid by a single payment in the future. Each payment includes both principal and interest. The first loan is repaid by a 3000 payment at the end of four years. The interest is accrued at an annual nominal rate of discount equal to 5% compounded semiannually. The second loan is repaid by a 4000 payment at the end of five years. The interest is accrued at an annual...
12. Jeff deposits 11 into an account on day 5, 12 on day 10, 13 on...

12. Jeff deposits 11 into an account on day 5, 12 on day 10, 13 on day 15 and so on. The account gains interest via an annual interest rate of 3.65% compounded daily. Find the future value of the account on day 600, immediately after the deposit of 130 is made Round your answer to the nearest whole number. Note: There are 365 days in a year. Answer 12. Jeff deposits 11 into an account on day 5, 12...

*****Need a second opinion on this question. Have conflicting responses.***** 12. Jeff deposits 11 into an...

*****Need a second opinion on this question. Have conflicting responses.***** 12. Jeff deposits 11 into an account on day 5, 12 on day 10, 13 on day 15 and so on. The account gains interest via an annual interest rate of 3.65% compounded daily. Find the future value of the account on day 600, immediately after the deposit of 130 is made Round your answer to the nearest whole number. Note: There are 365 days in a year. Answer 12....
A sinking fund is established to discharge a debt of $50,000 in 25 years. If deposits...

A sinking fund is established to discharge a debt of $50,000 in 25 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 4%, compounded semiannually, what is the amount of each deposit? (Round your answer to the nearest cent.)
3) Effective versus nominal interest rates. Bank A pays 4% interest compounded annually on deposits, Bank...

3) Effective versus nominal interest rates. Bank A pays 4% interest compounded annually on deposits, Bank B pays 3.75% compounded semiannually, and Bank C pays 3.5% compounded daily. a) Which bank would you use? Why? b) If you deposited $5,000 in each bank today, how much would you have at the end of 2 years? c) What nominal rate would cause Banks B and C to provide the same effective annual rate as Bank A? d) Suppose you do not...

Your grandfather placed $5,000 in a trust fund for you today. 10 years later the fund...

Your grandfather placed $5,000 in a trust fund for you today. 10 years later the fund will be worth $8,000. What is the interest rate earned on this trust fund? (Annual compounding)

4. Jeff deposits X into a fund today and 100 fifteen years later. Interest is credited...

Homework Answers