Answered: Calculate the future value of…

Calculate the future value of end-of-month payments of $4,000 made for 7 years into an investment fund that earns 5.50% compounded quarterly.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 5P

See similar textbooks

Related questions

Q: A perpetuity earning 4.00% compounded semi-annually is started with a $159,000.00 investment. How…

A: Perpetuity refers to a period of indefinite time series and in financial terms, perpetuity refers to…

Q: $1500 is invested semi-annually for 3 years into a fund that pays 6.8% per year, compounded semi-…

A: We have; Amount invested semi annually as $1500 Interest rate is 6.8% compounded semi annually Time…

Q: a.) How much money must be invested at the end of each quarter for 25 years in a sinking fund that…

A: Here, Future value is 'FV' Present value or investment amount is 'P' Nominal interest rate is 'r'…

Q: What monthly payment into a sinking fund at 8% compounded semi –annually will be needed to raise…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…

Q: Choi Home Repair needs to accumulate $24,000 in 6 years to purchase new equipment. What sinking fund…

A: Given: Future value: $24,000 Rate: 8%/4 = 2% Nper: 6*4 = 24

Q: business must raise $50,000 in 9 years. What should the size of the owners’ quarterly payments to a…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for…

A: using excel Goal seek to find out the fixed amount

Q: P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…

A: Semi annual deposit = P = P240,000 Interest rate = 11% Semi annual interest rate (r) = 11%/2 = 5.50%…

Q: Find the amount necessary to fund the given withdrawals. Yearly withdrawals of $1250 for 14 years;…

A: The present value is needed for a withdrawals made at a certain period. It will be taken in order to…

Q: Use the sinking fund formula shown to the right to determine the semiannual payments with 6%…

A: Sinking fund formula can be used to calculate the semiannual payment to accumulate the the amount.…

Q: $150,000 is deposited in a fund that pays 5% annual compound interest for 2 years, 3% annual…

A: There are two methods of charging interest on loans. One is the simple interest method and other is…

Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which…

A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4

Q: Compute the present value of the following annuity investments: 2. P5,000 quarterly investment at 6%…

A: FORMULA PVA = P*[1-(1/(1+i)n)/i] Where PVA - Present value of annuity P - Quarterly payment i.e.…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Q: Use the sinking fund formula shown to the right to determine the monthly payment needed to…

A: A sinking fund can be referred to as a type of fund specially created to pay off the debts.…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: In this question we need to compute the present value of the following annuity streams.

Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Čalculate the compounded future value at EOY 20 of 20 annual payments of $5,000 each into a savings…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: An investment required an initial payment of $10,000 and annual payments of $1,500 at the end of…

A: First we need to calculate present value of total outflows PV of outflows =initial payment +PMT…

Q: At the end of each quarter-year, for 6 years, $1,200 is deposited into an investment paying 3.4%…

A: At the end of each quarter-year, for 6 years, $1,200 is deposited into an investment paying 3.4%…

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides…

A: Time Period = 20 Years Interest rate = 5% Present Value = $180,000

Q: Calculate the present value of $5,000 received five years from today if your investments pay: 6…

A: Given:

Q: 7. A fund is established by depositing P30,000 every beginning of 3 months for 2 years. If money is…

A: Quarterly deposit (P) = P 30,000 Interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3% Period…

Q: Determine the present value and total amount of an annuity with 6 payments of P120,000 each made at…

A: The interest is compounded quarterly at rate of 3.75%.

Q: Calculate the compound amount (in $) on an investment of $5,500 at 10% interest, compounded…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Choi Home Repair needs to accumulate $26,000 in 6 years to purchase new equipment. What sinking fund…

A: Dear student, we need to find future value of ordinary annuity factor by using table 12-1 in the…

Q: Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly…

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…

A: Information Provided: Term (number of payments) = 20 Payment amount = $5000 Interest rate = 6%

Q: Payments of 1000 are invested at the end of each year for 5 years. The payments earn interest at an…

A: Annuity involves the payment of a periodic amount up to a specified period of time, and eventually a…

Q: Calculate the future value of end-of-quarter payments of $5,000 made for 5 years into an investment…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Choi Home Repair needs to accumulate $24,000 in 6 years to purchase new equipment. What sinking fund…

A: Frist we need to find future value annuity factor of ordinary annuity in table attach below question…

Q: Find the present value PV of the annuity account necessary to fund the withdrawal given. $2,300 per…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Your RRSP savings of $52,500 are converted to a RRIF at 4.22% compounded monthly that pays $5,372 at…

A: EXCEL FORMULA:

Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposit…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: Semiannual deposits, beginning with $500 and increasing by $100 with each subsequent deposit, are…

A: a) Computation:

Q: Calculate the future value of end-of-month payments of $500 made for 4 years into an investment fund…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: What sinking fund payment is required at the end of each 6-month period, at 6% interest compounded…

A: Payment required at end of each 6-year period can be calculated as: = Future Value / Future value of…

Q: Find the amount necessary to fund the given withdrawals yearly withdrawals of $1150 for 10 years;…

A: Present value of annuity: Annuity payment * Present Annuity Factor of $1 at i% for n years. Where, i…

Q: An investment project has annual cash inflows of $2,800, $3,700, $: for the next four years,…

A: The payback period method is a very important technique used in capital budgeting for assessing…

Q: 1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6…

A: Using excel PV function

Q: Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a sinking…

A: Business use sinking funds to accumulate funds to purchase new equipment or to meet other expensive…

Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Compute the future value of the following annuity investments: s 1. P6,000 quarterly investment at…

A: The future value of the annuity can be calculated with the help of annuity function

Q: . Annuities Find the 10-year future value of anordinary annuity with a contribution of $300…

A: Introduction: Future value of an annuity can be defined as calculating the value of series of…

Q: In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund…

A: Amount to be deposited per quarter can be calculated using PMT function in excel. PMT(rate, nper,…

Q: Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,…

A: The future value is computed by multiplying the present money by the future value annuity factor. In…

Q: Use the sinking fund formula shown to the right to determine the monthly payment needed to…

A: A Sinking fund refers to a fund that is kept aside or borrowed in order to pay off a debt or a loan.…

Question

Calculate the future value of end-of-month payments of $4,000 made for 7 years into an investment fund that earns 5.50% compounded quarterly.

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?
If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?
Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly and produces $44,000 at the end of 3.5 years. Payments are made at the end of each period. The payment size is $_
Find the amount of each payment to be made into a sinking fund which earns 7% compounded quarterly and produces $32,000 at the end of 2.5 years. Payments are made at the end of each period. The payment size is $ (Round to the nearest cent.)
Calculate the accumulated amount of end-of-quarter payments of $8,500 made for 7 years into an investment fund that earns 4.50% compounded monthly.
Calculate the future value of end-of-quarter payments of $5,000 made for 5 years into an investment fund that earns 5.50% compounded monthly. $0.00 Round to the nearest cent
Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year, compounded monthly, for 8 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent.
Use the sinking fund formula shown to the right to determine the monthly payment needed to accumulate $400,000 with 7% interest are compounded monthly for 29 years. The monthly invested payment is $
Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to accumulate $66,000 over 6 years. Payments are made at the end of each period. The payment size is $ (Round to the nearest cent.)
Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to accumulate $39,000 over 8 years. Payments are made at the end of each period. The payment size is $
Calculate the future value of end-of-month payments of $500 made for 4 years into an investment fund that earns 6.25% compounded quarterly. $27,768 38 (X) Round to the nearest cent
Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account that earns 6% per year. All 20 payments are made at the beginning of each year.