How much must be deposited today into the following account in order to have a $135,000 college fund in 13 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 3.16% should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.)

Q: Compute the amount of money to be set aside today

A: Present value means the value of  future money . Future cashflow are discounted at a discounted…

Q: You need $24,856 at the end of nine years, and your only investment outlet is a 10 percent long-term…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,…

A:

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: How much more money is required to fund an ordinary perpetuity than a 25-year ordinary annuity if…

A: Effective Annual rate: It is  the interest rate on loan/investment  restated from the nominal…

Q: You make $9,300 annual deposits into a retirement account that pays an APR of 9.9 percent compounded…

A: The FV of an account refers to the cumulative value of cash flows at a fixed future date assuming…

Q: You need $24,056 at the end of 6 years, and your only investment outlet is an 8 percent long-term…

A: An estimate of the present value of hypothetical future cash flows for a given time period at an…

Q: Sebastopol Movie Theater will need $180,000 in 3 years to replace the seats. What deposit should be…

A: Future Value  $          1,80,000.00 Time Period 3 Interest Rate 0.80%

Q: What annual deposit into a sinking fund at 5% compounded annually will be needed to raise half a…

A: P500000 is needed at the end of 10 years. The Fair value at the end of 10 years = Annual Deposit x…

Q: Mr. Santos will deposit P10, 000 at the ABC bank at the end of each quarter for 2 years. If the bank…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How much must be deposited today into the following account in order to have $45,000 in 8 years for…

A: Step 1 With a certain rate of return, present value (PV) is the current value of a future financial…

Q: Find the amount necessary to fund the given withdrawals. Semiannual withdrawals of $700 for 9 years;…

A: An annuity is a financial product or investment that provides a regular income stream for a fixed…

Q: How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter…

A: Perpetuity annuity involves sequence of infinite cash flows which do not have any end period. It is…

Q: A perpetuity is to pay $21,000 at the end of every six months. How much less money is required to…

A: Solution:- Perpetuity means the payment made forever. Value of perpetuity = Periodic Payments /…

Q: An investment account returns 6.29% annually. You want to withdraw $ 10,000 each year for the next…

A: The present value of an annuity is the value today of a series of equal payments made at fixed…

Q: corporation hopes to withdraw $9,000 at the end of each year for six years from a fund that earns 7%…

A: Variables in the question:Withdrawal each year (PMT)=$9000 n=6 yearsRate=7%

Q: (Comprehensive problem) You would like to have $52,000 in 12 years. To accumulate this amount, you…

A: Future value = $52,000Period = 12 yearsInterest rate = 10% compounded annually

Q: Find the amount necessary to fund the given withdrawals. Quarterly withdrawals of $950 for 5 years;…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: How much would you need to deposit at 6% on January 1, 1990, in order to draw out $179.2 at the end…

A: Given: FV= $179.21 n=7 i=6%

Q: You deposited $8,300 in a savings account. The account will earn 8 percent annual compound interest,…

A: Interest: It can be defined as the amount that is charged by the lender on the amount lent to the…

Q: 2) Fund X earns i(12) = 6% interest, while Fund Y earns i(12) = 3% interest (and both start off with…

A: in this problem you have to calculate monthly interest and calculate future value of that.

Q: Find the periodic payments PMT necessary to accumulate the given amount in an annuity account.…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: If 5 deposits of $600 each are made into an account at the end of years 9, 10, 11, 12, and 13, what…

A: Deposit in year 9,10,11,12 and 13 = $ 600 Future value period = Year 25 Annual interest rate = 12%

Q: You have $20,800.51 in a brokerage account, and you plan to deposit an additional $3,000 at the end…

A: The number of years required to accomplish the goal can be find out by using the future value of…

Q: Compute the present value of an $1.200 payment made in nine years when the discount rate is 11…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: Find the amount of each payment to be made into a sinking fund earning 7 % compounded monthly to…

A: Future value is the worth of the current amount in future date after considering the interest rate…

Q: purchased for $185,000 pays $5,000 at the end of every quarter. How long will the payments continue…

A: Present value of annuity is amount of equivalent value today that will equivalent to future value of…

Q: Determine the accumulated amount of a five year annuity paying $6000 at the end of each year.…

A: FUTURE VALUE  Future value is the value of an asset at a specific date. Future Value is value of…

Q: How much must be deposited today into the following account in order to have a college fund in 11…

A: The time value of money is a concept in finance that takes into account the effect of compounding in…

Q: with a 0.07 compounded semi annually approximately how much money must be invested today in order to…

A: For ascertaining the amount to be invested today, following formula shall be used: = Amount required…

Q: Mr. Akram wants Rs. 500,000 at the end of 8 years from now. Find the amount to be deposited at the…

A: Future value FACTOR =(1+r)n-1/r r=7% and period =8 Future value FACTOR =(1.07)8-1/0.07 Future value…

Q: An annuity purchased for $195,000 pays $6,000 at the end of every quarter. How long will the…

A: The term "annuity" refers to an insurance contract created and distributed by financial institutions…

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: An annuity is a financial term that depicts a stream of cash flows of an equivalent periodic amount…

Q: A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: You would like to have $78,000 in 12 years. To accumulate this amount, you plan to deposit an equal…

A:

Q: Clearlake Optical has a $50,000 note that comes due in 5 years. The owners wish to create a sinking…

A: Compound = Semiannually = 2Future Value = fv = $50,000Time = t = 5 * 2 = 10Interest Rate = r = 4.5 /…

Q: If money can earn 5.1% compounded monthly, how much more money is required to fund an ordinary…

A: The objective of the question is to find out the difference in the amount of money required to fund…

Q: Answer the following questions using Excel's RATE, NPER, PMT, PV and FV functions. 2. What sum of…

A: The investment amount is the present value of the monthly payments.

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.