Trent has opened an RRSP account by making an initial deposit of $900. He intends to make semi-annual deposits for 18 years increasing at a constant rate of 3.1%. How much of the accumulated value just after the last deposit was made is interest if interest is 8.7% compounded semi-annually?
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?trend has openned an RRSP account by making an initial deposit of $1000. he intends to make annual deposits for 15 years increasing at a constante rate of 2%. how much of the accumulated values just after the last deposit was made is interest if interest is 3.6% compounded annually? the amount of interest included in the accumulated value is $___You plan to accumulate R450,000 over a period of 12 years by making equal annual deposits in an account that pays an annual interest rate of 9% (assume all payments will occur at the beginning of each year). What amount must you deposit each year to reach your goal?
- Louis is saving for his retirement by making annual end of year deposits for 30 years into a bank account that pays interest at a nominal rate of 8% compounded quarterly. For the first 10 years the deposits are level at $5000 each year. After the 10 th year, each deposit is 3% more than the year before. A) Give an actuarial expression for the account balance after the final deposit is made ? B) What is the account balance after the final deposit is made ?Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest rate of 7% that compounds monthly. How much interest will be paid to this account?Harry Morgan plans to make 30 quarterly deposits of P200 into a savings account. The first deposit will be made immediately. The savings account pays interest at an annual rate of 8%, compounded quarterly. How much will Harry have accumulated in the savings account at the end of the seven and a half-year period? (Use the appropriate table in the text.) *
- You deposit $1.2 milion into vour account to cover expenses in the next 12 vears. The account earns interest at the rate of 4%, compounded annually. Assume you expect the balance of the account to be $0 at the end of the 12th year. A) What annual level of living expenses Will your initial deposit support. (e.g., what equal annual withdrawal can you make for the next 12 years )? b) Suppose you realize your living expenses will increase at an annual rate of 2% due to inflation. Determine the updated annual spending plan in the line with this model how much can you withdrawal at the end of the first year. knowing that your withdrawal will increase by 2% each year? C) Suppose the initial deposit is still planned to support your equal annual expenses in the next 10 years as in part a but don't need to withdraw any money from your account for the first 6 years. You will withdraw from your account annually starting from the end of year 7 till the end of year 12. What annual level of living…Alan makes deposits to an account at the end of every year for 12 years. His first deposit is $300 and each subsequent deposit increases by $50. If the account earns an annual effective interest rate of 4%, what is the accumulated value of the account after 12 years? 1,850 3,700 6,590 7,340 8,290You deposit $3000 in an account that pays 88% interest compounded semiannually. After 33 years, the interest rate is increased to 8.408.40% compounded quarterly. What will be the value of the account after a total of 66 years? The value of the account will be $.
- Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter that Pedro’s money shall earn monthly compounded interest. If the prevailing interest rate of the Institution M is 8 % compounded yearly, how much will the value of his deposit be after 14 months?James made an initial deposit into an account of $1,000 at time t = 0, followed by five annual deposits of $200 at times t = 1,2, 3, 4, 5. James will receive payments from the account at times t = 7, 8, 9, starting at $1,500 and decreasing by $X per year. The balance in the account after the last payment is $0. Determine X given an effective annual interest rate of 7%. Hint: Sketch a time diagram to see the payments. Possible Answers A $490 but < $530 D 2 $530 but < $570 E 2$570Pascal has recently opened an RRSP. He plans to deposit $ 965 at the end of every month for 20 years. The account will compound interest semi-annually at the nominal rate of 5.9 %. How much money will Pascal have in his account immediately after his last deposit? a. $ 410717.66 b. $ 410717.66 c. $ 454411.03 d. $ 436933.68 e. $ 410717.66