3. On a girl’s 10th birthday, her father started to deposit ₽5,000 quarterly at the end of each term in a fund that pays 1 5 compounded monthly. How much will be in the fund on his daughter’s 17th birthday?
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Identify whether the given problem illustrates a simple or general
3. On a girl’s 10th birthday, her father started to deposit ₽5,000 quarterly at the end of each term in a fund that pays 1 5 compounded monthly. How much will be in the fund on his daughter’s 17th birthday?
4. The buyer of a lot pays ₽50,000 cash and ₽10,000 every month for 10 years. if money is 8% compounded monthly, ho much is the cash value of the lot?
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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. 2,0000.92642. Manuel is preparing for an income fund for his retirement. He wants to receive ₱ 15 500 at the beginning of each month for the next 25 years. The income fund pays 10.5% per year compounded monthly. How much must Manuel deposit now to pay for the annuity?Determine the kind of annuity used in the following situations. Then, solve the problem. Show your neat and complete solution. 1. Your dad deposits P 10,000 every 3 months for 7 years in an account paying 4% compounded quarterly.How much will she have in his account at the end of 7 years assuming no withdrawals were made?
- 8. An amount of P 250,000 is deposited now into a savings account that earns 8% per year. This amount will take care for the yearly allotment of a grandmother until shedies. The first allotment will be one year after the deposit is made. How much can thegrandmother withdraw every year?A man has children aged 12, 15, and 20. He purchases annuities for each one that pay 3,000 per year with the first payment happening one year from today and continuing as long as the recipient is under 30. The annual interest rate is 8%. What is the total cost of these annuities? Round to 2 decimal places.Answer the following questions. Show your complete solution. 1. Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity? 2. Cheska is saving for her dream cellphone. She deposits 2,000 pesos at the end of each month that earns 5% per year compounded semi-annually. Find the amount in the account after 1 1⁄2 years. 3. Janine wants to but a lot which cost 1 million pesos. She plans to give a down payment of 20% of the cost, and the rest will be paid by financing at monthly interest rate of 2% for 10 years in equal monthly installments. What will be the monthly payment? 4. Christopher wants to have 50,000 pesos in 4 years by saving equal regular payments. He can make a deposit at the end of each month in account that earns 8.5% per year compounded quarterly. How much must he deposit to achieve his…
- A rich relative has bequeathed you a growing perpetuity. The first payment will occur in one year and will be $2,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 3% larger than the last payment. This pattern of payments will go on forever. If the interest rate is 10% per year, a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made? a. What is today's value of the bequest? Today's value of the bequest is $ (Round to the nearest dollar.) b. What is the value of the bequest immediately after the first payment is made? The value of the bequest immediately after the first payment is made is $ (Round to the nearest dollar.)A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $3000 . Each year after that, you will receive a payment on the anniversary of the last payment that is 7% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 9% per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made?A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $5,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 5% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 9% per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made?
- 1. General Annuity. your grandparents are planning to save for their retirement. They target to accumulate 10,000,000 in 10 years. to do this they want to set aside a portion of their salaries and contribute monthly for their retirement funds. How much should they contribute per month if they will have a chance to onvest in an annuity that earns 5% compounded quarterly? 2. Mr. david oscar joined their office cooperative and agreed to contribute 2,000 per month beggining in january 2019 Which will earn 3% compounded monthly. How much will be the future value of your mom's contribution at the end of april 2020/Find the future value of each using the future value of an ordinary annuity formula. Shelly deposits the $2,000 she got as a birthday gift from her grandmotherinto an account earning 3.6% interest compounded monthly. She decides to also deposit $200 at the end of each month into the same account. How much will be in the account in 10 years? Julian won the lottery! He deposits some of his winnings intoan account earning 2.75% interest compounded quarterly. He makes his deposit of $25,000 and also decides to start making deposits of $1,000 into the same account at the end of each quarter. How much will he have after 5 years?4. Suppose you make an annual contribution of BD300 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solution AGE Beginning Balance Ending Balance Deposit Interest
