A fund of about P5 million is to be created by 40 quarterly payments at the rate of 4% compounded quarterly. Find the quarterly deposit. Construct a table showing the growth of the fund for the first 6 quarters

A fund of about P5 million is to be created by 40 quarterly payments at the rate of 4% compounded quarterly. Find the quarterly deposit. Construct a table showing the growth of the fund for the first 6 quarters

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

Related questions

Q: A fund is established by depositing P30,000 every beginning of 3 months for 2 years. If money is…

A: The amount of fund after final deposit can be calculated with the help of future value of annuity…

Q: stment of 100,000 is to be used to make payments of 4,000 at the end of each quarter for as long as…

A: The payments are made periodically that carry the payment of principal amount and payment of…

Q: You invested $11,500 at the end of each quarter for 6 years in an investment fund. At the end of…

A: Information Provided: Invested amount = $11,500 Years = 6 Future value of invested amount =…

Q: You are considering investing $1,000 in an investment fund at the end of every quarter for the next…

A: As per the time value of money concept, a certain amount held today is worth more than holding the…

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

Q: An investor puts $2,000 into a deposit account with a fixed rate of return of 10% per year. A second…

A: The aggregate investment made by the investor will be considered as portfolio with $2,000 investment…

Q: You invested $7,000 at the end of each quarter for 8 years in an investment fund. If t balance in…

A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…

Q: A sinking fund amounting to $19,000 is to be created by making payments at the beginning of every 6…

A: in this you have to find out future value FACTOR and sinking fund required.

Q: )A businesswoman needs 55,000 in 10 years. What amount should be deposited in a fund at the end of…

A: Data given: FV= $55,000 Time (t) = 10 years Rate (r) = 10% compounded quarterly n= 4 Period = 10*4 =…

Q: Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of…

Q: Marigold Corp. deposits $12000 in a fund at the end of each year for 5 years. The fund pays interest…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Six annual deposits in the amount of $4,000, $3,300, $2,600, $1,900, $1,200 and $500, in that order,…

A: Future Value(FV) is compounded value of present amount at future date.

Q: Find the amount of each payment to be made into a sinking fund so that enough will be present to…

A: An amount (FVA) $8900 will be present at the end of (n) 13 annual payments with interest rate (r )…

Q: A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every…

A: given, p= $21,000 n=6 r= 5.9%

Q: Quarterly deposits of $1,000 are made at t = 1, 2, 3, 4, 5, 6, and 7. Then, with drawals of size A…

A: The Future value of $1000 quarterly deposits at the end of the 7th quarter equals :…

Q: A fund is being formed by monthly deposit of P2,000 at 6% compounded monthly a) Find the amount…

A: future value of annuity=A×1+rmm×n-1rmwhere,A=monthly depositr=rate of interestm=frequency of…

Q: fund of P 30,000 is invested at 14 % compounded quarterly. A withdrawal of 000 is agreed upon. How…

A: The fixed amount of annuities can be withdrawn from the accumulated and that carry the interest and…

Q: You deposit $50,000 into a fund that pays 5% per year compounded annually. You plan to make the…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Solve manually using formulas. A fund earning 8% annual effective rate of interest is being…

A: Present Value of annuity-The amount of money needed to cover a series of future annuity payments…

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: Qin Jiushao deposits 1, 000 into a fund on January 1, 2020 and then another eposit of unknown amount…

A: Here, Time Weightage Yeild Rate is 10% ( It will be considered only) Deposit is 1000

Q: 7. A fund is established by depositing P30,000 every beginning of 3 months for 2 years. If money is…

A: Quarterly deposit (P) = P 30,000 Interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3% Period…

Q: 3. Kenchana Sdn. Bhd. needs $2,100,000 in 3 years. Find the required semiannual payment into a…

A: Future value required (FV) = $ 2,100,000 Period = 3 Years Number of semi annual payments (n) = 3*2 =…

Q: Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly…

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: Payments of 1000 are invested at the end of each year for 5 years. The payments earn interest at an…

A: Annuity involves the payment of a periodic amount up to a specified period of time, and eventually a…

Q: Using a discount rate of 5.5% compounded annually, a pension fund estimates that the present value…

A: Rate sensitive assets and liabilities: The assets and liabilities whose prices change with changes…

Q: Franklin's investment fund had a balance of $280,000 on January 1, 1995 and a balance of $448,000…

A: An investment fund is a fund in which investors pool their money in order to generate returns.…

Q: A company deposited $5,500 into an investment fund at the beginning of every quarter for 6 years. It…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is called…

Q: Your RRSP savings of $52,500 are converted to a RRIF at 4.22% compounded monthly that pays $5,372 at…

A: EXCEL FORMULA:

Q: Semiannual deposits, beginning with $500 and increasing by $100 with each subsequent deposit, are…

A: a) Computation:

Q: If $90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of $23,138.32…

A: solution: Let interest rate earned = i Annual withdrawls = $23,138.32 Amount invested (Present value…

Q: t the beginning of the year, an investment fund was established with an initial deposit of 500 . A…

A: The dollar-weighted return is the return that is earned on the investment amount during the period.

Q: Bi-monthly deposits of 16,000 are made to accumulate a fund at the end of 8 years. Round off final…

A: Here, Bi- Monthly Deposit is $16,000 Time Period of Deposit is 8 years Note: Here, it is not clearly…

Q: Determine the amount to be deposited in a fund now that earns 9% per year to provide for eight end…

A: Interest rate (r) = 9% Annual withdrawal (A) = RM 187.45 n = 8 years Let the amount to be deposited…

Q: A company deposited $14,500 into an investment fund at the beginning of every quarter for 7 years.…

A: The accumulated value of any fund is equal to the sum of future value of all the deposits made…

Q: Tikla invested Pnp210, 000 in a time deposit account at 7.5% compounded semi annually. How much is…

A: Investment amount (P) = Php 210,000 Annual interest rate = 7.5% Semi annual interest rate (r) =…

Q: A sinking fund amounting to $21,000 is to be created by making payments at the beginning of every…

A: Sinking fund can be defined as the fund which has been established for the purpose of accumulating…

Q: QuantAlpha fund charges a 12b-1 fee of 1% and maintains an expense ratio of 0.75%. Assume the rate…

A: Value of investment = Invested amount*(1+r)n *(1-annual charges %)n r is rate of return of fund…

Q: ayments of $4,000 are made into a fund at the beginning of each year for ten years. The fund is…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: If a fund pays 12% compounded annually, what single deposit now will accumulate $12,000 at the end…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: Aling Paring started to deposit P2,000 quarterly in a fund that pays 5.5% compounded quarterly.-…

A: The question gives the following information:

Q: 3000.00 120.00 706.47 706.47 706.47 706.47 2293.53 C 120.00 A B 120.00 D 2205.32 794.68 0.00 120.00…

A: Sinking fund is amount being deposited each period to achieve the future value required in the…

Q: If annual deposits of $1,000 are made into a fund paying 12% interest compounded annually, how much…

A: Present Value of deposits (PV)=$1,000 Interest Rate (r)= 12% compounded annually Time period (n)= 5…

Q: A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to…

A: The answer to this question is a Palindromic annuity The formula to be used for solving this is,

Q: Suppose you make equal quarterly deposits of $2,500 into a fund that pays interest at a rate of 5%…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded…

A: Answer a:- The future value of an investment is calculated using the following formula:- Future…

Q: The sum of P4200 will be withdrawn from a fund at 3-month intervals, the first withdrawal to be made…

A: Solved using Financial Calculator PV = -48,000 FV = 6000 PMT = 4200 I/Y = 7 CPT N = 22.2304…

Q: in order to have a fund of 1,000,000 at the end of 12 years, equal deposits every six months must be…

A: Future value of sequence of periodic payments consists of payments made and interest accumulated…

Q: At the beginning of each year, you deposit the following into a growthmutual fund that earns 6…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Question

PLEASE TYPE IT AND NOT HANDWRITTEN

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
Quarterly deposits of $1,000 are made at t = 1, 2, 3, 4, 5, 6, and 7. Then, with drawals of size A are made at t = 12, 13, 14, and 15. If the fund pays interest at a quarterly compounding rate of 4%, what value of A will deplete the fund with the fourth withdrawal?
Bank ZLX is marketing their new fund by noting that a fixed $320 monthly deposit in their fund should be expected to net $1,900,000 in 35 years. Assume the first deposit is made at the end of this month. What effective annual rate (EAR) is Bank ZLX expecting their new fund to return?
How much should SKF Steel Company invest in a fund to be able to withdraw $10,000 at the end of every 3 months for five years? The money in the fund is expected to grow at 4% compounded quarterly for the first two years, and 6% compounded quarterly for the next three years
£12,000 is invested at time t=0. Calculate the value of the fund after 14 years if the nominal rate of interest is 3.7% per annum convertible quarterly for the first 5 years, and thereafter the force of interest is 2.30% per half-year for the remaining years. No tables, only formulas, please
If P20,000 is invested in a fund that pays 10% compounded annually, how much money will be in the fund after 3 years? Accumulate P30,000 for 3 years and 6 months at 16% compounded semiannually. What is the compound amount after you invest P22,350 for 5 years and 6 months at 5% compounded semiannually? What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500 that is compounded quarterly at 20% interest? Find the nominal rate which when compounded semiannually and applied to a P50,000 principal will earn an interest of P5,000 after 60 months. In how many months will P10,000 earn a compound interest of P2,000 if money is worth 12% compounded monthly? What effective rate is the equivalent to 15% compounded annually?
You arc making $5.000 monthly deposits into a fund that pays inte rest at a rate of 6% compounded momhly. What would be the balance at the end of 15 years? Pls make a cashflow diagram. (a) $1,063,879 (b) $1.358.169 ( c) $ 1,452,053 (cl) $1.459,423
Bright Inc. will be receiving $5,500 at the end of every month for the next 2 years. If these payments were directly invested into a fund earning 6.00% compounded semi-annually, what would be the future value of the fund at the end of 2 years? Round to the nearest cent
Arish has $25,000 in an investment account and plans to contribute $1,000 at the start of each quarter into the fund for 15 years. If Arish wishes to have $200,000 at the 15th year, determine the rate of interest compounded quarterly needed to fulfill this requirement. Hint: Enter PV as $-25,000
A trust fund with a beginning balance of $24,000 earns interest at 5.0% compounded quarterly. If withdrawals of $3,300 are made at the beginning of every three months, starting 10 years from now, how long will the trust fund last? Round properly. Answer in quarters.
determine the size of the payments that must be made to a sinking fund in order to accumulate $233,188 if the interest rate is 5.25% compounded quarterly and payments are made for 7 1/4 years. Use TVM solver
You are considering investing $1,000 in an investment fund at the end of every quarter for the next 6 years. The first investment will be made at the end of the coming quarter. The fund is expected to earn an interest rate of 10% p.a., with interest compounded quarterly. At the end of 6 years, the total dollar value in this investment fund will be closest to: Group of answer choices A.$6,388. B. $7,716. C. $32,349. D. $40,000.