Your math professor has decided to retire and return to his jetsetting life style. He wishes to establish a fund from which he can withdraw $6,000 per month for the next 20 years. If the fund earns 5% per year compounded continuously, how much money does he need now to establish the fund?
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- You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period.Jack Walter recognizes the value of saving part of his income. He has set a goal to have $35,000 in cash available for emergencies. How much should he invest semiannually to have $35,000 in ten years if the sinking fund he has selected pays 6% annually, compounded semiannually? E Click the icon to view the table. He should invest $ semiannually. (Round to the nearest cent as needed.)Jack Walter recognizes the value of saving part of his income. He has set a goal to have $15,000 in cash available for emergencies. Assume he invests semiannually to have $15,000 in five years and the sinking fund he has selected pays 8% annually, compounded semiannually. Find the total interest earned on the sinking fund using the given table. E Click the icon to view the table. The total interest earned will be S . (Round to the nearest cent as needed.)
- Hal wants to establish a savings fund from which a community organization could draw $890 a year for 20 years. If the account earns 2.5 percent annual interest, what amount does he have to deposit now to achieve this goal? Use Exhibit 1B-4. (Round time value factors to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Amount to be deposited $Jack Walter recognizes the value of saving part of his income. He has set a goal to have $30,000 in cash available for emergencies. How much should he invest semiannually to have $30,000 in five years if the sinking fund he has selected pays 6% annually, compounded semiannually?* Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $120 per month into an account with an APR of 5%. Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) OA. No, because the amount that will be in the college fund, $ B. Yes, because the amount that will be in the college fund, $ is less than the goal of $65,000. " is more than the goal of $65,000. "
- You decided to fund a charity for ten years. The first payment will be made one year from today (at the end of year one) and will be $8,350. Each year after that, the charity will receive payment from you annually. The payment will increase at a rate of 2% per year after the second payment. If the annual interest rate is 15%, what is the present value of this endowment? no excel and calculations pleaseA young married couple wishes to set up a fund that can be used for various home equipment purchases over the next 10 years. Their forecast is for $10,000 to be needed at the end of year 1, decreasing by $1000 each year thereafter. The fund earns 6% per year. How much money must be deposited in the fund now such that after the last withdrawal (10 years from now) the fund is depleted (balance in the account equals 0)? (Answer: $43,999)Listen The Chan family would like to establish a bursary at Camosun College. The bursary will pay $2,000 to a deserving finance student each year. Assuming that the payments will never end and that the funds can earn j1=3.5%, how much will it take to establish the bursary? Assume that the payments are at the end of each year. Your Answer:
- Mr. Crabapple wants to donate money now for an account that will allow a favored charity to make $17,000 withdrawals at the end of each of years 19 to 44. How much should he contribute today if investment managers Dogwood Associates expect to earn returns averaging 4.3% per year on the charity's foundation account? (This is a 26-year deferred annuity, with $17,000 to be paid out at the end of each of years 19 to 44.) A. $128,584.54 B. $115,644.17 C $263,040.12 D. $123,283.36 E. $156,230.80Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 10% annual interest rate, compounded quarterly, in order to have $30,000 in the fund at the end of 10 years? Question content area bottom Part 1 They should deposit $enter your response here. (Round up to the nearest cent.)Answer the following question, show all working. Use a financial calculator if needed. DO NOT use excel: Your grandfather left an inheritance for you of $100,000. However you can only drawdown on the investment as follows:Years 1 – 3 $15,000 each yearYear 4 to 6 $10,000 each yearYear 7 $25,000Interest on the fund is 5%.a) What is the present worth of this inheritance?b) Due to high liquidity interest rate have dropped to 4%. What will be the impact on the present worth of this inheritance as a consequence of the market change?