The $3,500 annual deposit are made at the end of each of the four years and interest is compounded annually.Note: Round your final answers to nearest whole dollar amount.Table, Excel, or calculator function:Deposit:Fund balancen= A company plans to make four annual deposits of $3,500 each to a specialbuilding fund. The fund's assets will be invested in mortgage instrumentsexpected to pay interest at 12% on the fund's balance. Note: Use tables, Excel,or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1and PVAD of $1) Required: Determine how much will be accumulated in thefund after four years under each of the following situations: The $3,500 annualdeposit are made at the end of each of the four years and interest iscompounded annually. The $3,500 annual deposit are made at the beginningof each of the four years and interest is compounded annually. The $3,500annual deposit are made at the beginning of each of the four years and interestis compounded quarterly. The $3,500 annual deposit are made at thebeginning of each of the four years interest is compounded annually, andinterest earned is withdrawn at the end of each year.Complete this question by

Annual deposit = $3500Interest rate = 12%Number of years = 4To find: Fund balance after 4 years when…

Answered: A company plans to make four annual…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 19P

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The file MutualFunds contains a data set with information for 45 mutual funds that are part of the Morningstar Funds 500. The data set includes the following five variables: Fund Type: The type of fund, labeled DE (Domestic Equity), IE (International Equity), and FI (Fixed Income) Net Asset Value (): The closing price per share Five-Year Average Return (%): The average annual return for the fund over the past five years Expense Ratio (%): The percentage of assets deducted each fiscal year for fund expenses Morningstar Rank: The risk adjusted star rating for each fund; Morningstar ranks go from a low of 1 Star to a high of 5 Stars. a. Prepare a PivotTable that gives the frequency count of the data by Fund Type (rows) and the five-year average annual return (columns). Use classes of 09.99, 1019.99, 2029.99, 3039.99, 4049.99, and 5059.99 for the Five-Year Average Return (%). b. What conclusions can you draw about the fund type and the average return over the past five years?
The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenue-producing investments, together with annual rates of return, are as follows: The credit union will have 2 million available for investment during the coming year. State laws are credit union policies impose the following restrictions on the composition of the loans and investments: Risk-free securities may not exceed 30% of the total funds available for investment. Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). Furniture loans plus other secured loans may not exceed the automobile loans. Other secured loans plus signature loans may not exceed the funds invested in risk-free securities. How should the 2 million be allocated to each of the loan/investment alternatives to maximize total annual return? What is the projected total annual return?
The University Club recently issued 1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually. You have been asked to calculate the issuance price of the bonds and prepare amortization schedules for any discount or premium. The worksheet BONDS has been provided to assist you. Note that the worksheet contains a scratch pad at the bottom that has been preprogrammed to automatically compute and display the relevant cash flows needed for bond pricing.
Wiseman Video plans to make four annual deposits of $4,750 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. Determine how much will be accumulated in the fund on December 31, 2024, under each of the following situations.
Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. Using the appropriate time-value of money table, determine how much will be accumulated in the fund on December 31, 2024, under each of the following situations:1. The first $2,000 deposit is made on December 31, 2021, and interest is compounded annually.2. The first $2,000 deposit is made on December 31, 2020, and interest is compounded annually.3. The first $2,000 deposit is made on December 31, 2020, and interest is compounded quarterly.4. 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.
Suppose an individual invests $20,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2.5 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses are 0.55 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 7 percent each year paid on the last day of the year. If the investor reinvests the annual returns paid on the investment, calculate the annual return on the mutual funds over the two-year investment period. Select one: a. 3.77% b. 5.09% c. 7.54% d. 8.86% e. 10.18%
On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed fund in the fed funds market to cover the shortfall in reserves for the remainder of the month (29 days, from 4/2 to 4/30). The required yield on a discount basis was 1.5%. On April 30, 2020, Key Bank finally received the first required payments from its mortgages, loan, and T-bills, and it also paid off its fed funds loan. Key Bank was required to establish a loan loss reserve at 0.5% of the commercial loan value and the bank was in the 35% tax bracket. The bank had not engaged in any off-balance-sheet activities. Question: What was the bank's ROE for its first month of operation? Group of answer choices 1.76% 1.95% 2.21% 3.48%
On April 2, 2020, shortly after the $7.5 million deposit outflow, Key Bank had borrowed the needed fund in the fed funds market to cover the shortfall in reserves for the remainder of the month (29 days, from 4/2 to 4/30). The required yield on a discount basis was 1.5%. On April 30, 2020, Key Bank finally received the first required payments from its mortgages, loan, and T-bills, and it also paid off its fed funds loan. Key Bank was required to establish a loan loss reserve at 0.5% of the commercial loan value and the bank was in the 35% tax bracket. The bank had not engaged in any off-balance-sheet activities. Question: According to the balance sheet as of April 30, 2021, was Key Bank complying with the risk weighted capital requirement set by Basel 1? Group of answer choices The bank's tier 1 capital, but not total capital, meets the minimum requirement. The bank's total capital, but not tier 1 capital, meets the minimum requirement. Neither tier 1 capital nor total capital of the…
With the following questions, why is 'n' value backwards? #1: Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. The first deposit is made on December 31, 2017, and interest is compounded quarterly. #2: Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $5,000 under each of the following situations. The first payment is received on December 31, 2019, and interest is compounded quarterly.
A business wants to borrow $300,000 from a bank for a future investment. The bank offers a 5 year loan, compounded quarterly, at 5% interest on the debt. During the period of the bank loan, the company establishes a sinking fund to help discharge the bank loan, at 4%, compounded quarterly, using the future lump sum debt as the lump sum payment in the sinking fund. FIND: the quarterly deposits that the company must deposit into the sinking fund to pay off its bank debt in one lump sum.
Using the PVIFA table determine the annual payment on a $600,000, 10 percent, business loan from a commercial bank that is to be amortized over a five-year period
An 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 NOT 12607.61

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