Anton deposits P400,000 today and another P200,000 in 6 years into a fund paying simple interest of 5% per year. Andres on the other hand made the same two deposits but P400,000 will be deposited t years from today and P200,000 will be deposited 2t years from today. His account earns an annual effective rate of 4%. At the end of 15 years, the accumulated amount of Anton’s deposits equals the accumulated amount of Andres deposits. Calculate t (round off to the nearest two decimal places).

Anton deposits P400,000 today and another P200,000 in 6 years into a fund paying simple interest of 5% per year. Andres on the other hand made the same two deposits but P400,000 will be deposited t years from today and P200,000 will be deposited 2t years from today. His account earns an annual effective rate of 4%. At the end of 15 years, the accumulated amount of Anton’s deposits equals the accumulated amount of Andres deposits. Calculate t (round off to the nearest two decimal places).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

See similar textbooks

Similar questions

Joe deposits GHS10 today and another GHS30 in five years into a fund paying simple interest of 11% per year. Tina will make the same two deposits, but the GHS10 will be deposited n years from today and the GHS30 will be deposited 2n years from today. Tina’s deposits earn an annual effective rate of 9.15%. At the end of 10 years, the accumulated amount of Tina’s deposits equals the accumulated amount of Joe’s deposits. Calculate n. (
Bill makes deposits of 2,700 at the end of each year for n years into a fund. At time n, he uses the accumulated value of the fund to purchase an annuity immediate that makes payments of 197,909.20 at the end of each year for 5 years. The annual effective interest rate is 15%. Calculate n. O a. 26 O b. 29 O c. 28 O d. 24 O e. 22
Miguel's retirement fund has an accumulated amount of $50,000. If it has been earning interest at 4.25% compounded monthly for the past 22 years, calculate the size of the equal payments that he deposited at the beginning of every 3 months. Round to the nearest cent
Mr. Deneau accumulated $98000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $5400 at the end of every three months from the fund. If interest is 4.1% compounded annually, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months).
Joe Franklin deposits $22,000 in a savingsaccount that pays 6% interest compounded monthly.Three years later, he deposits $16,000. Two yearsafter the $16,000 deposit, he makes another deposit inthe amount of $13,500. Four years after the $13,500deposit, half of the accumulated funds are transferredto a fund that pays 8% interest compounded quarterly. How much money will be in each account sixyears after the transfer?
May deposits PhP 20,000 into a fund at the beginning of each year for 10 years.At the end of 15 years, she makes an additional deposit of X.At the end of 20 years, May uses the accumulated balance in the fund to buy a perpetuity-immediate with annual payments of PhP 30,000 per year for 10 years, and PhP 15,000per year thereafter.Interest is credited at an annual effective rate of 6%. Calculate X.
Ali contributed $1,000 per year for the past 9 years into an RRSP account, earning 3.8% compounded annually. If he leaves the accumulated contributions for another 5 years in the RRSP at the same rate of interest, a. How much will Ali have in total in his RRSP account? b. How much did Ali contribute? c. How much will be the interest?
Kyler deposits $225 each month into an annuity at 6.2% annual interest for 25 years . At the end of 25 years , he has an account balance of 160,811.43 how much of this did kyler contribute and how much of this is interest
At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If Deja takes the money in 48 equal monthly withdrawals with the first in 16 years (when the Deja is 18), then what is the size of each payment?
Mr. Deneau accumulated $97,000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $1500 at the end of every month from the fund. If interest is 3.95% compounded quarterly, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months). He can make withdrawals for year(s) and month(s).
John borrows $10,000 for 10 years and uses a sinking fund to repay the principal. The sinkingfund deposits earn an annual effective interest rate of 5%. The total required payment for both the interestand the sinking fund deposit made at the end of each year is $1,445.04. Calculate the annual effectiveinterest rate charged on the loan.
At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8% compounded annually. How much is in the account today? How much would be in the account if the deposits were made at the beginning of each year (PMT Type) than at the end of each year? (Use Future Value of an Annuity