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1) Calculate the amount of money an investment banker would have to deposit in an investment fund...
1) Carlos has borrowed $8,000 for 8 years at 6% compounded semi-annually. He will repay interest...
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...
3. Mr. and Mrs. Mercado decided to sell their house and to deposit the fund in a bank. After computing the interest,...
3. Mr. and Mrs. Mercado decided to sell their house and to deposit the fund in a bank. After computing the interest, they found out that they may withdraw P350,000 yearly for 4 years starting at the end of 7 years when their child will be in college. How much is the fund deposited if the interest rate is 3% compounded annually? 4. A group of employees decided to invest a portion of their bonus. After 3 months from today,...
1. Calculate the accumulated value of an ordinary annuity of $4,200 a year for 6 years...
1. Calculate the accumulated value of an ordinary annuity of $4,200 a year for 6 years if the money is worth 71 2 %. 2. Find the future value of the cash flow of $600 a month for 5 years at 9% interest compounded monthly. 3. If Gabe makes a $450 deposit into his savings fund at the end of each quarter for 6 years, how much will he be able to collect at the end of the sixth year...
1. A) B) The Mellows have decided to invest in a college fund for their young...
1.
A)
B)
The Mellows have decided to invest in a college fund for their young son. They invested $20,000 in a deferred annuity that will pay their son at the beginning of every month for 4 years, while he goes to college. If the account earns 3.00% compounded monthly and the annuity payments are deferred for 14 years, what will be the size of the monthly payments? Round to the nearest cent Juan purchased an annuity that had an...
1. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in...
1. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want to withdraw $4,000 at the beginning of each month, how long before the savings plan is exhausted? 2. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want the plan to last 40 years, how much can you withdraw...
Part1: The Boxing Fund must pay an old boxer R18 000 every three months indefinitely. Money...
Part1: The Boxing Fund must pay an old boxer R18 000 every three months indefinitely. Money is worth 11.4% per year, compounded quarterly. What is the opening balance? Part2: If the boxer decides to reschedule his compensation in three payments; the first payment now, the second payment twice the size of the first payment four years from now, and the third payment three times the size of the first payment nine years from now. The Boxing fund agrees on condition...
1) Cheryl wants to have $3500 in spending money to take on a trip to Disney...
1) Cheryl wants to have $3500 in spending money to take on a trip to Disney World in three years. How much must she deposit now in a savings account that pays 5% per year to have the money she needs in three years? To have $3500 in three years, Cheryl would need to deposit $ ? 2)How much will you have in 36 months if you invest $77 a month at 12% annual interest? In 36 months, you will...
Calculate the money needed to achieve the financial goals of these people A. The parents of...
Calculate the money needed to achieve the financial goals of these people A. The parents of a baby wish to establish a college fund for their child. They deposit $100 every month into an account for 18 years. The money earns 6 3/8% interest compounded monthly. Find the future value of this account. B. How much money can the student withdraw from the account in "Part A" every month (including summer school) for 4 years of the money is now...
(11) An account with an annual interest rate of 3% is opened and some amount of money is deposite...
(11) An account with an annual interest rate of 3% is opened and some amount of money is deposited today. Assuming no Further transactions (withdrawals or deposits) on the account, how much should the initial deposit be so that the account has $500 16 months from now if interest is compounded (a) annually? (2 points) (b) monthly? (2 points) (c) quarterly? (4 points) (d) continuously? (2 points) Also, provide the ANNUAL yield in all parts.
(11) An account with an...
A young man is the beneficiary of a trust fund established for him 21 yr ago...
A young man is the beneficiary of a trust fund established for him 21 yr ago at his birth. If the original amount placed in trust was $50,000, how much will he receive if the money has earned interest at the rate of 10%/year compounded annually? Compounded quarterly? Compounded monthly? (Round your answers to the nearest cent.) compounded annually $ compounded quarterly $ compounded monthly $ Need Help? Read Talk to a Tutor MY NOTES PRACTICE ANOTHER 4. [-/0.1 Points]...
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...
3. Mr. and Mrs. Mercado decided to sell their house and to deposit the fund in a bank. After computing the interest, they found out that they may withdraw P350,000 yearly for 4 years starting at the end of 7 years when their child will be in college. How much is the fund deposited if the interest rate is 3% compounded annually? 4. A group of employees decided to invest a portion of their bonus. After 3 months from today,...
1.
A)
B)
The Mellows have decided to invest in a college fund for their young son. They invested $20,000 in a deferred annuity that will pay their son at the beginning of every month for 4 years, while he goes to college. If the account earns 3.00% compounded monthly and the annuity payments are deferred for 14 years, what will be the size of the monthly payments? Round to the nearest cent Juan purchased an annuity that had an...
Calculate the money needed to achieve the financial goals of these people A. The parents of a baby wish to establish a college fund for their child. They deposit $100 every month into an account for 18 years. The money earns 6 3/8% interest compounded monthly. Find the future value of this account. B. How much money can the student withdraw from the account in "Part A" every month (including summer school) for 4 years of the money is now...
(11) An account with an annual interest rate of 3% is opened and some amount of money is deposited today. Assuming no Further transactions (withdrawals or deposits) on the account, how much should the initial deposit be so that the account has $500 16 months from now if interest is compounded (a) annually? (2 points) (b) monthly? (2 points) (c) quarterly? (4 points) (d) continuously? (2 points) Also, provide the ANNUAL yield in all parts.
(11) An account with an...
A young man is the beneficiary of a trust fund established for him 21 yr ago at his birth. If the original amount placed in trust was $50,000, how much will he receive if the money has earned interest at the rate of 10%/year compounded annually? Compounded quarterly? Compounded monthly? (Round your answers to the nearest cent.) compounded annually $ compounded quarterly $ compounded monthly $ Need Help? Read Talk to a Tutor MY NOTES PRACTICE ANOTHER 4. [-/0.1 Points]...
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