Fund A is invested at an effective annual interest rate of 5%. Fund B is invested at an effective annual interest rate of 4%. At the end of 15 years, the total in the two funds is $8000. At the end of 30 years, the amount in Fund A is twice the amount in Fund B. Calculate the total in the two funds at the end of 20 years. Solution:
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- 3) Payments of $2500 made at the beginning of each semiannual period for 15 years at 4% compounded semiannually Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. Please show all workings step by step3) Payments of $2500 made at the beginning of each semiannual period for 15 years at 4% compounded semiannually Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. Please show all the workings.You are given: i. Fund X accumulates at an interest rate of 8% compounded quarterly. ii. Fund Y accumulates at an interest rate of 6% compounded semiannually. iii. At the end of 10 years, the total amount in the two funds combined to $1000. iv. At the end of 5 years, the amount in Fund X is twice that in Fund Y. Calculate the total amount in the two funds at the end of 2 years.
- 1. $1500 is invested semi-annually for 3 years into a fund that pays 6.8% per year, compounded semi- annually. Which are the correct values for PMT, i, and n?a.) How much money must be invested at the end of each quarter for 25 years in a sinking fund that is to amount to $100,000 at the end of 25 years if interest is nominal 8% compounded quarterly? b.) How much will have accumulated in the sinking fund mentioned in (a) after 15 years.3) Payments of $2500 made at the beginning of each semiannual period for 15 years at 4% compounded semiannually Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period.
- Fund A is invested at an effective annual interest rate of 5%. Fund B is invested at an effective annual interest rate of 4%. At the end of 10 years, the total of the two funds is 10,000. At the end of 15 years, the amount in fund A is triple the amount in fund B. Calculate the total of the two funds at the end of 20 years.2: An investment fund is set up to make payments of $1,250 at the end of every month for 15 years. Interest on the fund is 8.50% compounded monthly. (a) How much money must be deposited into the fund today to allow for this series of payments? (b) How much will be paid out of the fund? (c) How much interest will be earned by the fund?A lump sum S deposited into either fund X or fund Y will be exactly sufficient to provide a perpetuity of $100 per year with the first payment due at the end of one year. Fund X will earn interest at an effective annual rate of 10% for the first 30 years and 6% thereafter. Fund Y will earn interest at a level effective annual rate of j. In which of the following ranges is j? someone help?
- 2. Northern Flying Science is preparing to buy an aircraft estimated to cost $600,000 by making equal payments at the end of every three months into a sinking fund for five years. Interest earned by the fund is 8% compounded quarterly. a. What is the size of the quarterly payment made to the sinking fund? b. How much of the maturity value of the fund will be interest? c. What is the accumulated value of the fund after two years? interest will the fund earn in the 15th payment interval? d. How much Using BA II Plus CalculatorIf $100 is deposited in a fund at the beginning of each 3 months for 8 years and the money is invested at 5% compounded quarterly, how much is the fund (a) at the end of 7 3/4 years just after the payment due then is made (b) at the end of 8 years?The sum of $159,760 is invested at 5.5% compounded monthly for four years. After the four years, the balance in the fund is converted into an ordinary annuity paying $10,240 annually. If interest on the annuity is the same, what is the term of the annuity? Select one: O a. 13.49 years b. 10.21 years С. 17.69 years d. 11.34 years e. 9.62 years