How much money is needed to establish a fund paying $80,000 annually forever with the first...
ou would like to establish a trust fund that will provide $50,000 a year forever for your heirs. The trust fund is going to be invested very conservatively so the expected rate of return is only 2.75 percent. How much money must you deposit today to fund this gift for your heirs?
-27 How much invested now at an interest rate of 9% compounded annually would be just sufficient to provide three payments as follows: the first payment in the amount of $3,000 occurring two years from now, the second payment in the amount of $4,000 five years thereafter, and the third payment in the amount of $5,000 seven years thereafter? 62.34 What is the future worth of a series of equal yearly deposits of $5,000 for 7 years in a savings...
Your company is investing in a fund that is expected to earn 3% annual interest (compounded annually) for the first 4 years and 9% annual interest (compounded annually) for the next 6 years. If your company invests $1,000 each year for the first 5 years and $12,000 for the remaining 5 years, how much money will be in the fund after 10 years.
4) (10 points) You just invested $10,000 in a fund for 5 years. How much money will be in the account at the end of 5 years for the following interest rates a) 10% simple interest per year? b) 8% per year compounded annually?
Your grandparents would like to establish a trust fund that will pay you and your heirs $160,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 3.1 percent, how much must your grandparents deposit today?
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest every 6 months plus principal at maturity. He will also deposit X every 6 months into a sinking fund paying 5% compounded semi-annually to pay off the principal at maturity. a) Find X. Carlos goes bankrupt at the end of year 6, just after making his interest payment and sinking fund deposit. The bank confiscates the money in the sinking fund but gets no...
How much more money is required to fund an ordinary perpetuity than a 15-year ordinary annuity, if the funds can earn 5% compounded quarterly, and both pay $600 monthly? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ more money is needed to fund the perpetuity PLEASE IM EXPECTING A CORRECT ANSWER FROM YOU
How much more money is required to fund an ordinary perpetuity than a 35-year ordinary annuity, if the funds can earn 6% compounded quarterly, and both pay $800 monthly? (Do not round intermediate calculations and round your final answer to 2 decimal places.) $ more money is needed to fund the perpetuity
An
OSU alumna wants to establish a scholarship fund that can provide
$10,000 annually for scholarships over a 20-year period, starting
exactly 6 years from now (t.=6). She is planning to make the
following cash contributions– an initial (t=0) contribution now
followed by 5 annual (t=1 through t=5) contributions. She just
contributed $50,000. She plans to make 5 equal annual contributions
starting one year from now. If the fund is expected to earn 10% per
year compounded annually, determine the...
154. How much money must be invested in an account that pays 6% per year in- terest to be worth $20,000 at the end of 8 years if (forgetting leap years and making "convenient" assumptions): a. Interest is compounded annually? onomani a b. Interest is compounded semi-annually? c. Interest is compounded quarterly? Wo b d. Interest is compounded monthly? no wo o e. Interest is compounded weekly? f. Interest is compounded daily? g. Interest is compounded hourly? h. Interest is...