9. At what interest rate compounded quarterly will RM15,000 become RM19,500 in 2 years 3 months?ANS: 11.83%10. If RM 6,000 will accumulate to RM7,500 in five years' time, what is the interest rate compounded annually?ANS: 4.56%11. At the birth of her grandson, Samantha Jones commits to help pay for his college education. She decides to makedeposits of $600 at the end of each 6 months into an account for 17 years. Find the amount of the annuity and theinterest earned, assuming 6% compounded semiannually.ANS: $14,238.11Page 2

The objective of these questions is to calculate the interest rate and the amount of annuity in…

Answered: 9. At what interest rate compounded…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 16PROB

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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
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?
K Jack and Jill have just had their first child. If college is expected to cost $190,000 per year in 18 years, how much should the couple begin depositing annually at the end of the next 18 years to accumulate enough funds to pay 1 year of tuition 18 years frm now? Assume that they can earn a 6% annual rate of return on their investment. The amount that the couple should begin depositing annually at the end of each year is S This question: point(s) (Round to the nearest cent)
Raymond wants to save the college tuition fees his child will need in ten years by starting with a deposit of $7,500 today and depositing another $200 at the beginning of each month. How much will Raymond have in ten years if he gets a rate of return of 4% per annum? a. $37,201 b. $39,057 c. $40,537 d. $40,441
7. You need a P70, 000.00 per year for four years to go to college. Your father invested an amount of P100, 000.00 in a 7% account for your education when you were born. If you withdraw the money worth P70, 000.00 at the end of your 18th, 19th, 20th and 21st years, how much much money will be left in the account at the end of your 22nd year?
6. Erika opened a savings account today and she immediately put $10,000 into it. She plans to contribute another $20,000 one year from now, and $50,000 two years from now. The savings account pays a 6 percent annual interest rate. If she makes no other deposits or withdrawals, how much will she have in the account 10 years from today? a.$ 8,246.00 b.$116,937.04 c$131,390.46 d.$164,592.62 e.$190,297.04 2/4
35. A man wishes to bequeath to his daughter P20,000 ten years from now. What amount should he invest now if it will earn interest of 8% compounded annually during the first 5 years and 12% quarterly during the next 5 years? Answer with text and/or attachments:
12) What annual rate of return would Jia need to earn if she deposits $20,000 per year into an account beginning one year from today in order to have a total of $1,000,000 in 30 years?
17) Sun Woo wants to purchase an annuity that will pay him $1,000 a month for fifteen years. If he can a 4.5% rate of return, how much will he have to pay today in order to purchase this B) $154,327 C) $96,489 D) $130,720 E) $185,171 negotiate annuity? A) $123,185

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