The first $2,000 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn atthe end of each year.$DepositAmount2,000No. ofPaymentsInterest left in Fund BalanceFund12/31/2024

Interest is the amount of profit earned on the deposit amount and is the rate of return earned.Given…

Answered: The first $2,000 deposit is made on…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round your answer to the nearest cent.) Sinking Fund Payment $ 27658 x Payment Frequency every year Time Period (years) 14 Interest Nominal Rate (%) Compounded annually 8 Future Value (Objective) $750,000
Universal Travel Incorporated borrowed $518,000 on November 1, 2024, and signed a twelve-month note bearing interest at 6% Prinopal and interest are payabl amount of interest payable that should be reported by Universal Travel Incorporated on December 31, 20257 Mutiple Choice 50 $31000 $5.00 $040
Commencing January 1 2022 Narelle plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be made on January 1 2022. Narelle predicts that the rate of return on this fund will be j12=3.76% from 1 January 2022 to 30 June 2022 and 12-4.08% from 1 July 2022 to 31 December 2022. If we assume these deposits are made at regular intervals, what will the balance of this account be on 31 December 2022? a. 6126.45 b. 6131.38 c. 6111.42 d. 6068.98
On April 12, 2019, BOBOT Company adopted a plan to accumulate P5,000,000 by July 1, 2023. BOBOT plans to make four equal annual deposits to a fund that will earn interest at 10% compounded annually. BOBOT made the first deposit on July 1, 2019. Future value factors are as follows: Future value of 1 at 10% for 4 periods 1.46 Future amount of ordinary annuity of 1 at 10% for 4 periods 4.64 Future amount of annuity in advance of 1 at 10% for 4 periods 5.11 How much annual deposit should BOBOT Company make for four years in order to accumulate the desired amount on July 1, 2023 (rounded)? a. P730,000 b. P978,500 c. P1,250,000 d. P1,077,500
blem #1: $10,000 is used to purchase an appropriate size annuity that has level annual payments for 18 years. The price of the annuity is based on an effective annual rate of 11.2%. As each payment is received, it is put into a fund that earns an effective annual rate of 7%. (a) Determine the accumulated value of the investment at the end of 18 years. (b) If the $10,000 were put into a fund that was to produce the same final value after 18 years, what annual effective rate would that fund have to offer?
Today is 1/7/2021, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j2=2.23% from 1/7/2021 to 30/9/2021 and j2=4.3% from 1/10/2021 to 31/12/2021. What will be balance amount of this account on 31/12/2021? Round your answer to three decimal places. a. 3032.601 b. 3033.695 c. 3032.335 d. 3031.814
On January 1
8. Deposits of 1000 are placed into a fund at the end of each year for the next 25 years for the subsequent purchase of a perpetuity. Five years after the last deposit, annual payments commence and continue forever. If i = .09 then find the amount of each payment.
Consider an amount of 25,000 in a fund today, October 25, 2022. Determine its value on Oct. 25, 2019 at 4.32% annual effective interest rate
Subject:
Calculate the rebate on bills discounted for each bill for the year end 31.12.2020 Date of bill OMR Period Rate of discount A 15/12/2020 5,000 3 months 12% 5/10/2020 2,000 4 months 14% 2/11/2020 15,000 2 months 5% Rebate on bills discounted on A Rebate on bills discounted on B Rebate on bills discounted on C
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The first $2,000 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at the end of each year. Deposit Amount 2.000 No. of Payments Interest left in Fund Balance Fund 12/31/2024