investor pays the following separate amounts into a fund: £12,100 at t=7 years £17,900 at t=13 years £12,300 at t=28 years The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (i.e. at time t=0). ONLY formulas, please, no tables) answer is N

investor pays the following separate amounts into a fund: £12,100 at t=7 years £17,900 at t=13 years £12,300 at t=28 years The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (i.e. at time t=0). ONLY formulas, please, no tables) answer is N

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

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

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

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 9RE

See similar textbooks

Similar questions

An investor pays the following separate amounts into a fund: £12,100 at t=7 years, £17,900 at t=13 years and £12,300 at t=28 years. The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (correct answer = 12422.19, no tables, only formulas, please)
An investor pays the following separate amounts into a fund: £11,900 at t=6, £17,600 at t=14, and £10,700 at t=27. The fund pays an effective annual rate of interest of 11.9% during the first 7 years and effective half-yearly rate of discount of 3.5% for the remaining period until the end of year 27. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (i.e. at t=0). (correct answer = 12097.62, asnwer IS NOT £16,538.08, no tables, please, ONLY formulas)
A person invests a series of level payments at the end of each month into a sinking fund, with no withdrawals allowed over a 28-year period, at the following annual levels: £1655 per annum for the first 10 years followed by £2323 per annum until the end of year 20 (inclusive). Given that rate of interest is 5.9% pa convertible monthly throughout the entire period, calculate, the value of this investment at the time of withdrawal of t=28 years. no tables, only formulas, please
An individual invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels: £1511 per annum for the first 8 years followed by £1971 per annum until the end of year 22 (inclusive). Assuming a nominal rate of interest of 6% pa convertible quarterly throughout the entire period, calculate, to 2 decimal places, the value of this investment at the time of withdrawal of t=31 years (correct answer = 133570.39, using formulas no tables)
In order to meet some future liabilities, a company makes the following series of regular investments into a fund: £13633 pa paid 4 monthly in arrears in the first 3 years followed by £12177 pa paid half-yearly in advance in the next 4 years. Assuming that the fund accumulates compoundly at an effective rate of interest of 5.8% pa throughout, how much total fund the company will hold at the end of year t=14? Express your answer in £000s to 3 decimal places.
A company needs to set aside a fund to meet the following future annuity payments to an individual: £1443 paid at the end of each year for the first 4 years followed by £1441 paid at the end of each year up until year 15 (inclusive). Assuming an effective rate of interest of 6.9% pa throughout the entire period, how much total fund the company needs to hold today in order to meet these payments? Express your answer in £s to 2 decimal places. (correct answer = 13214.59)
An annual deposit of P1,500.00 is placed on a fund at the end of each year for 6 years. If the fund invested has a rate of interest of 5% compounded annually, how much is the worth of this fund at the end of 9 years? O a. P11,118.10 O b. P11,821.10 O c. P11,181.10 O d. P11,811.10
Someone invests a series of level payments at the end of each quarter into a sinking fund, with no withdrawals allowed at the following annual levels: £1511 per annum for the first 8 years followed by £1971 per annum until the end of year 22 (inclusive). Assume a nominal rate of interest of 6% pa convertible quarterly throughout the entire period, calculate, the value of this investment at the time of withdrawal of t=31 years. correct answer = 133570.39, No tables, only FORMULAS, please
Calculate the accumulated amount at the end of year 16 of the following regular series of payments made into a savings plan: £2400 paid at the end of each year for years 3 to 6 and then £1090 paid at the beginning of each year for years 14 to 16. Consider that the fund accumulates compoundly at an effective rate of interest of 5.7% pa and there are made no withdrawals from the fund during the term.
An insurer needs to make the following annuity payments to an individual: £744 paid at the beginning of each year for the first 5 years and then £654 paid at the beginning of each month for the next 5 years and then £798 paid at the beginning of each quarter for the following 8 years. Assuming a nominal rate of interest of 2.7% pa convertible quarterly throughout the entire period, how much total fund the insurer needs to hold today in order to meet these payments? Express your answer in £s to 2 decimal places. (correct answer: 53269.67) (need working out)
An insurer needs to make the following annuity payments to an individual: £744 paid at the beginning of each year for the first 5 years and then £654 paid at the beginning of each month for the next 5 years and then £798 paid at the beginning of each quarter for the following 8 years. Assuming a nominal rate of interest of 2.7% pa convertible quarterly throughout the entire period, how much total fund the insurer needs to hold today in order to meet these payments? Express your answer in £s to 2 decimal places.
An investor pays the following separate amounts into a fund: £5,000 at t=0 £8,800 at t=7 £13,000 at t=14 Assuming an effective rate of interest of 9% pa, calculate the amount in the fund at time 22