Suppose you are investing $747 per year in an account that is compounded every quarter. The quoted annual rate is 5% per year. What is the value of this account after 4 years?
Suppose you are investing $747 per year in an account that is compounded every quarter. The...
What is the present value of the following annuity? $747 every year at the end of the year for the next 9 years, discounted back to the present at 12.60 percent per year, compounded annually? Round the answer to two decimal places.
Suppose that you can invest funds into a savings account that earns 1.75% per quarter, for five years and thereafter into a fund that earns 12% per annum, compounded monthly, for a further 5 years. If you require 300 000 at the end of the 10 year period, how much money must you invest tomorrow?
3. A student pays 87.50 per quarter for insurance. What would the pay- ments be if they were made annually? Monthly? Weekly? Every two years? Annual interest is 18% compounded monthly. 4. A bank customer deposits $100 at the end of every quarter for 5 years. He then increases the deposit to $120 and continues to make quarterly payments for 6 more years. Assuming an effective rate of 8% per annum, how much is in account after 5 years? After...
Taylor has a retirement account that pays 4% per year compounded monthly. Every month for 20 years, Taylor deposits $444, with the first deposit at the end of month 1 The day the last deposit is made, the interest rate increases to 6% per year compounded monthly. During retirement, Taylor plans to make equal monthly withdrawals for 15 years, thus depleting the account. The first withdrawal occurs one month after the last deposit. How much can be withdrawn each month?
You borrow $456,996.03 at an annual interest rate of 4.12%, compounded once every year. If you have 5 years to pay off the loan, what must be your per period payment?
1) You plan to deposit $1,000 every month into an account paying 6% compounded monthly for the next 5 years. How much will you accumulate over this five year period? 2) What is the future value interest factor of an annuity for #1? 3) If you plan to make annual payments instead of the monthly payments indicated in #1 above, how much will you have to deposit annually to have the same sum accumulated in five years as in #1...
1. (PMT =?) You wish to have $181,382 in a retirement account 12 years from now. What payment would you have to make every year starting next year in the interest rate 6.7%? 2. (PMT, PV =?) You just won the lottery and will receive an annual payment of $ 10,680 every year fro the next 14 years stating one year from today. If the annual interest rate is 12.2%, what is the present value of the winnings? 3. (PMT,...
What is the present value of the following annuity? $4,947 every quarter year at the end of the quarter for the next 4 years, discounted back to the present at 14.22 percent per year, compounded quarterly?
Suppose that $1000 is deposited into an account that pays 5% interest per year, at the end of each year, the amount in the account is 1.05 times the amount at the beginning of the year. Write a MATLAB program with a for loop to calculate the amount in the account after 10, 20, and 30 years. Repeat problem 1, assuming that the interest is compounded quarterly; that is, one-fourth of the annual interest (1.25%) is added to the account...
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years and 7% interest compounded quarterly thereafter. What is the account value after 7 years? Problem 1.9 What is the equivalent effective annual (compound) interest rate in Problem 1.8? Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate δ(t) = 2/(t + 1) (t > 0). What is the value...