1. Q Susan is a university student who was gifted a $3000 check upon graduating high school in June 2018. In January 2019, she decided to invest her money in a mutual fund earning an annual interest rate 69%, compounding quarterly. Assume the end-of-month convention. a. How much money did Susan loose by waiting until January 2019 to invest her money? b. If Eden made additional investments of $225 every quarter (starting at the end of March 2019), how much would the account be worth at the end of March 2022?

1. Q Susan is a university student who was gifted a $3000 check upon graduating high school in June 2018. In January 2019, she decided to invest her money in a mutual fund earning an annual interest rate 69%, compounding quarterly. Assume the end-of-month convention. a. How much money did Susan loose by waiting until January 2019 to invest her money? b. If Eden made additional investments of $225 every quarter (starting at the end of March 2019), how much would the account be worth at the end of March 2022?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

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Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
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1. Q. Susan is a university student who was gifted a $3000 check upon graduating high school in June 2018. In January 2019, she decided to invest her money in a mutual fund earning an annual interest rate 6%, compounding quarterly. Assume the end-of-month convention. a. How much money did Susan loose by waiting until January 2019 to invest her money? b. If Eden made additional investments of $225 every quarter (starting at the end of March 2019), how much would the account be worth at the end of March 2022? C. Suppose that Susan decided to withdraw 2 equal amounts, one at the end of April and one at the end of May in 2022 and remain with exactly $3000 in her account. What would be the amount of each withdrawal? Note: this answer should consider the additional quarterly investments of $225. d. Suppose that Susan decided to purchase a used car for herself in the amount of $10,000, upon graduating from WSU (at the end of June 2022). Given her existing investment plan (considering the…
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