An engineer invests $10,000 a year for 20 years into a fund. At the end of the 20 years, how much money is in the fund if the interest rate was 4%? simple interest A. $220,000 B. $300,000 C. $240,000 D. $270,000
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- 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?An investor wants to accumulate $50,000 in a fund at the end of 20 years. If the investor deposit$1,000 in the fund at the end of each of the first 10 years and $1, 000 + X at the end of each ofthe second 10 years, find the value of X if the fund earns 7% effective. Do the following steps toanswer this problem: a. $1,000 are deposited in the fund at the end of each of the first 10 years. This means thatthis is an example of annuity-immediate. Compute for the accumulated value of the fund inthe first 10 years. Call this T.b. The value of the fund in the first 10 years is T . Solve for the future value of T at the end ofthe next 10 years. Use the formula Future value = P (1 + i) t. Call this answer FV . (2points)c. The target amount of the investor is $50,000. The investment made in the first 10 yearsalone will grow to the value FV at the end of 20 years. So, in the second 10 years, theaccumulated value of the investment must be $50, 000 − FV . What is this value? Call thisU .An engineer invests $10,000 a year for 20 years into a fund. At the end of the 20 years, how much money is in the fund if the interest rate was 4% ? simple interest A. $220,000 . B. $300,000 ● C. $240,000 D. $270,000
- 3. A person deposits $18,000 in a fund that pays interest at the rate of 6% continuously. He withdraws 1200 dollars each year. i) Set up a differential equation where Y(t) represents the total amount in the fund after t years. Use the integrating factor method to solve the differential equation for the amount in the fund after t years. ii) What is the maximum withdrawal her can make every year so that the account is exhausted in 8 years? (Hint: Set up a new equation and solve)In order to accumulate $1,000,000 over 20 years, how much would you have to invest at the beginning of every three months into a fund earning 7.2% compounded quarterly? a $5,369.45 b $5,169.57 c $5,0128.36 d $5,262.62d) A person invests $50,000 in an investment that earns 6 percent. If $6,000 is withdrawn each year, how many years will it take for the fund to run out of money?
- A consultant advises that a fund pays out $100,000 at the end of 5 years. Provided $12,000 is invested in the fund at the start of each year, beginning immediately and continuing up to and including the investment at the start of year 5, what is the annual interest on this investment? What would be the equivalent uniform annual amount if the money was invested at the end of each year instead of the beginning? Clearly show your working methods and calculations.A contractor would like to invest in a real- estate development project and expecting to get $20,000 annually. A. To achieve that goal of the investment, how much should be deposited as a single sum of money with 5% compounded annually where the first withdrawal occurring 1 year after the deposit. B. What if the contractor would invest 50% of the money that he got after 5 years in a fund that pay 8% compounded annually by making 10 equal annual withdrawals from the fund. How much can he withdraw when the first withdrawal occur 1 year after deposit. C. Draw cashflow diagram13. hat Corp. establishing a fund where they pay $200 annually (ie. every year) into the fund. The interest rate thst the fund earns is an annual rate of 6%. What will be the balance of the fund at the end of the 5 years? Round to the nearest dollar. please also explain that formula(s) you used and variable inputs.
- K 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 $55 per month into an account with an APR of 7%. ... 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.) O A. No, because the amount that will be in the college fund, $ is less than the goal of $65,000. OB. Yes, because the amount that will be in the college fund, $ is more than the goal of $65,000. 3A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 8 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 6.1% compounded quarterly? (Round your answers to the nearest cent.) $11731.10 x How much interest would they earn over the life of the account? $ 170756.04 X Determine the value of the fund after 2, 4, and 6 years. 2 years $99013.71 X 4 years $210771.88 X 6 years $336914.93 X How much interest was earned during third quarter of the 4th year?You invest money in a fund that paid 9% simple interest paid annually. If it is worth $21,200.00 in 11 months, a) what is the present value? $ b) What is the rate of return? (answer as a percent 2 decimal places)
