d) 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 If $6,000 is withdrawn each year, how many years will it take for the fund to run out of money?
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d) 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 If $6,000 is withdrawn each year, how many years will it take for the fund to run out of money?
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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?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 If $6,000 is withdrawn each year, how many years will it take for the fund to run out?11. A man deposited P6,000 at a rate of 10% per annum. However, to add more fund, he deposits P500 per year that started one year after he deposited the P6,000. If he is withdrawing P1,500 per year for his expenses, for how long will the fund last and what will be the balance in the fund after the last withdrawal was made?
- a) An individual wishes to accumulate $1,700,000 in 20 years. If he wants to deposit a certain amount of fund annually in the first 10 years and do nothing in the following 10 years, what size deposit is required to meet the stated objective? Assume the annual compound interest rate is 4%. b) Solve the following, using interest rate at 7% compounded annually: i) What is the amount that will be accumulated in a sinking fund at the end of the 15th year if $200 is deposited in the fund at the beginning of each of the 15 years? ii) What uniform annual payment for 30 years is equivalent to spending $10,000 immediately, $11,000 at the end of 10 years, $12,000 at the end of 20 years, and $2,000 a year for 30 years?13. You have just made your first $4,000 contribution to your retirement account. Assuming you earn an 11 percent rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait 10 years before contributing? (Does this suggest an investment strategy?). 14. You are saving up for a down payment on a house. You will deposit $600 a month for the next 24 months in a money market fund. How much will you have for your down payment in 24 months if the fund earns 12% APR compounded monthly?An investor pays ₱1,100,000 for a mine which will yield a net income of ₱200,000 at the end of each year for 10 years and then will become useless. He accumulates a replacement fund at 4.5%. At what rate (%) does he receive interest on his investment at the end of each year? ANSWER WITH COMPLETE SOLUTION
- A person invests $50,000 in an investment that earns 6 percent. If $6,340 is withdrawn each year, how many years will it take for the fund to run out? Round to the nearest whole year. Round Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. yearsHow much can be paid in scholarships at the end of each half-year if $210,000 is deposited in a trust fund if interest is 4.5% compounded semi-annually?Q1) Suppose Rachel Townsley deposits $10,000 into an account that pays 8 percent interest compounded annually.(a) If she withdraws 10 equal annual amounts from the account, with the first withdrawal oocuring 1 year after the deposits, how much can she withdraw each year in order to deplate the fund with the last withdrawal? (b) If first drawal is delayed for 2 years, how much can she withdraw each of the 10 years?
- Suppose you make an annual contribution of P9,993 each year to a college fund for a niece. He is 6 years now, and you will start next year and make the last deposit when he is 19. The fund is a money market account earning 6.74% per year. What will it be worth immediately after the last deposit?3) equal deposits. The first deposit is made right now, the second, one year from now, and the third, two years from now. The fund pays 5% per year compounded annually. How much should you deposit each time? You would like to accumulate $25,000 in 3 years for a remodeling project. You plan to make 3An investor pays P1,100,000 for a mine which will yield a net income of P200,000 at the end of each year for 10 years and then will become useless. He accumulates a replacement fund to recover his capital by annual investments at 4.5%. At what rate (%) does he receive interest on his investment at the end of each year?
