14 How much money was depositedsemiannually for the past 15 years if it isnow sufficient to generate a perpetuity of$40,000 every six months beginningtoday? The account earned 8%,compounded semiannually, and will do sogoing forward.Group of answer choices$36,830$17,830$116,830$57,830

The future value of the amount deposited must be equal to the present value of the perpetuity.…

Answered: How much money was deposited…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

See similar textbooks

Similar questions

Present Value of an Annuity Ralph Benke wants to make 8 equal semiannual withdrawals of 8,000 from a fund that will earn interest at 11 % compounded semiannually. Required: How much would Ralph have to invest on: 1. January 1, 2019, if the first withdrawal is made on July 1, 2019 2. July 1, 2019, if the first withdrawal is made on July 1, 2019 3. January 1, 2019, if the first withdrawal is made on January 1, 2022
If $650 000 is saved for retirement, what rate of interest, compounded monthly, will provide payments of $3750 every month for the next 25 years? Select one: O a. 14.606797% O b. 0.811327% O c. 4.888702% O d. 4.867963%
CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next eight years. How much will accumulate by the end of the eighth and final payment if the account earns 8% interest? Select one: a. $265,915 b. $256,951 c. $223.070 d. $200,000 e. $275,713
You wish to deposit an amount now that will accumulate to $200,000 in 25 years. How much more would you have to deposit if the rate of interest was 6.5% compounded annually versus quarterly? Multiple Choice $1,327.49 $1,427.49 $1,627.49 $1,227.49 $1,527.49 Show all calculation and formulas if necessary
Economics Determine the future amount of money that will be withdrawn when i= 12% per year, compounded semiannually and the annual payments are $1000 for 6 years, starting 12 years from now. Select one: O a. 8189.0 O b. 9826.8 Oc. 11464.0 O d. 13102.4 O e. 14740.2 O f. 16378 Next page
Assume you deposit $1,000 today in an account that pays 8 percent interest (compounded annually). How much will you have in four years? Group of answer choices $1,320 $1,360.50 $1,080 $735.02
What amount of money deposited 70 years ago at 3% interest would provide a perpetual (i.e. infinite or indefinite) payment of $23,000 a year beginning this year? Choose the closest answer. O $766,666.67 O $96,827.98 O $6,070,330.13 O $669,838.69 O $113,739.94 O $11,373,993.60
If you put $10 in a savings account at the beginning of each year for 11 years, how much money will be in the account at the end of the 12th year? Assume that the account earns 11%, and round to the nearest $1.00. a. $217 b. $241 c. $68.89 d. $76.47 Please solve problem and give correct answer choice above. Please show all work and steps.
If $875 000 is saved for retirement, what rate of interest, compounded semi-annually, will provide payments of $20 000 at the end of every 6 months for the next 25 years? Select one: O a. 1073568% O b. 4.396189% O c. 2.147135% O d. 1.113415%
The value of a retirement savings account with an annual contribution of $600 (contributions made at the end of each year, including the last year), and an APR of 5.4% after 40 years is $79,960.27. Find the value of this retirement savings account after 52 years. Round your answer to the nearest cent. OA. $151,304.82 OB. $165,660.72 OC. $160,075.29 OD. $154,695.52 OE. $169,319.35
K Find the amount of each payment into a sinking fund if $14,000 must be accumulated Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly Round to the nearest cent Click here to view part 1 of the Sinking Fund table. Click here to view part 2 of the Sinking Fund table. OA. $829.92 OB. $4,597 32 OC. $1,180.06 OD. $1,073.52
Every year you deposit $3,500 into an account that earns 19% interest per year, What will be the balance of your account immediately after the 40th deposit? Click the icon to view the interest and annuity table for discrete compounding when / 1% per year. Choose the correct answer below. O A. $165,837 O B. $123,795 OC. $171,102 OD. $172,813 OE. $140,000

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

How much money was deposited semiannually for the past 15 years if it is now sufficient to generate a perpetuity of $40,000 every six months beginning today? The account earned 8%, compounded semiannually, and will do so going forward. Group of answer choices $36,830 $17,830 $116,830 $57,830