Anne wants to accumulate $25,000 by December 31, 2019. To accumulate that sum, she will make twelve equal quarterly deposits of $1,616.66 at the end of March, June, September, and December, beginning on March 31, 2016, into a fund that earns interest compounded quarterly. What annual rate of interest must the fund provide to yield the desired sum? 4.5% 26% 6.5% 18%

Q: The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31,…

A:

Q: A retired couple plans to supplement their retirement income with monthly withdrawals of the…

A: Retirement Income - It the amount deducted from the employee's current salary and to park in such…

Q: Willie deposits a fixed monthly amount into an annuity account for his child’s college fund. He…

A: Here, to calculate the monthly contribution we have to use the formula of future value of annuity.…

Q: thday, you will make the first monthly contribution of $200 into the fund that will earn 6%/year…

A: In this we need to calculate the monthly future value factor and and find out retirement fund and…

Q: How much money should Prisha invest today in a fund that earns interest at 4.02% compounded…

A: Here, Semi Annual Payment (PMT) is $7,750 Interest Rate (r) is 4.02% Compounding Period (m) is…

Q: May deposits PhP 20,000 into a fund at the beginning of each year for 10 years. At the end of 15…

A: This is a classic case of an annuity due, annuity perpetuity, annuity deferrals. First, we will…

Q: To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine…

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

Q: 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average eaming…

A: Given, A=$9900 r=11% n=40 years

Q: Tiffany has accumulated $60,000 in a mutual fund. If she continues to deposit $300 at the beginning…

A: Future value of a fund is the accumulated amount in the fund over a period of time with deposits and…

Q: Tariq will invest OMR 3000 in an investment fund for the next 30 years starting at the end of this…

A: The future value of the annuity is the total value of all the payments which occur regularly at a…

Q: Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Given, Amount required is P200,000 Rate 10% compounded quarterly.

Q: Walter deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

A: Future value required (FV) = $ 80000 Interest rate = 3.7% Quarterly interest rate (r) = 3.7%/4 =…

Q: Aika wishes to set aside a total of P60,000 as savings for the year 2022. She plans to deposit her…

A: A. On Deposit of P30,000 made on June 1, 2022, interest will accrue for 7 months and On Deposit of…

Q: Willie deposits a fixed monthly amount into an annuity account for his child's college fund. He…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = $75000 P =…

Q: Joe plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: Future value of an annuity: Future value of the annuity is the annuity factor used to calculate the…

Q: Mr. Handsome would like to accumulate $1 million in his pension fund. If the annual interest rate is…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: A retired couple plans to supplement their retirement income with monthly withdrawals of the…

A: In this question, the retired couple plans their income if they have a balance of 200000 in the…

Q: What amount should you invest quarterly for 30 years in a fund that earns 8% compounded quarterly,…

A: Time period = 30 years  Interest rate = 8% Future Value = P5,000,000

Q: Tara wishes to accumulate $27,000 in 3 years. Use the appropriate formula to find the sinking fund…

A: Given information: Future value is $27,000 Number of years is 3 Interest rate is 8% compounded…

Q: Tariq will invest OMR 3000 in an investment fund for the next 30 years starting at the end of this…

A: Annual Investment at the end of each year =OMR 3000 Interest Rate(r) = 13% Years(n) = 30 Future…

Q: Newman Hitchcock is 37 years old today and he wishes to accumulate $536,000 by his 60 th birthday so…

A: We use PMT function to calculate annual deposit (in financial calculator or excel)

Q: Mr Santos wants to get a lump sum of money when he retires at the end of 30 years. He then deposits…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: An investor needs $17,000 in 13 years. (a) What amount should be deposited in a fund at the end of…

A: Amount needed " FV" is $17,000 Time period is 13 years Interest rate is 7% Compounded Quarterly To…

Q: How much money should Zachary invest today into a fund that earns interest at 5.75% compounded…

A: Using the Time value of money and effective interest rates formula in excel

Q: 7. To accumulate Php 85 250, Joanna needs to place equal deposits at the end of every 3 months in a…

A: Given: Future Value of annuity payment (FVA) = Php 85250 Interest rate = 8% compounded quarterly…

Q: Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest…

A:

Q: Georgia deposits $4,000 every three months for five years. The first deposit is made on March 31,…

A: Money on December 31, 2020, immediately after her last deposit = Quarterly deposit x Factors for…

Q: Assume that Dorothy Williams desires to accumulate $926,000 in 15 years using her money market fund…

A: We will follow the below steps to calculate the Compund interest rate-1.) Base amount is = $254222-…

Q: ony Inc. will deposit $57,400 in a 4% fund at the end of each year for 6 years beginning December…

A: Here to find out the future value of annuity Calculation  Formula Future Value of Annuity = Annuity…

Q: Candice Alvarez is investing $397,300 in a fund that earns 15% interest compounded annually. Click…

A: Yearly withdrawals = Total amount invested / Present value factor Note: Present value factor means…

Q: Using the appropriate interest table, provide the solution to each of the following four questions…

A: For finding the yearly annual payments, we need to use the formula for Future Value of Annuity- FV…

Q: Amy will need PHP 1.75M on July 4, 2015. To prepare for this, she places equal deposits at the end…

A: Future value required on July 4 2015 (FV) = PHP 1,750,000 Interest rate (r) = 8% Number of annual…

Q: ner will IKto a special bank account at the end of each of 10 years beginning December 31, 2021.…

A: Future Value of Annuity: It represents the future worth of the present annuity cash flow stream and…

Q: Salem wishes to withdraw AED 30,000 at the end of each year of the next 6 years from his bank…

A: Annual withdrawal amount (A) = AED 30000 n = 6 years r = 10%

Q: Mr. Hopper expects to retire in 30 years, and he wishes to accumulate $1,000,000 in his retirement…

A: Given: Retire in : 30 years Amount : $1000,000 Interest rate : 12%

Q: Joey has 750,000 in bank account as of December 31,2018. If he deposited P40,000 in the account at…

A: Interest is the amount paid to the bank against loan taken. It is determined by multiplying the…

Q: 4) Ashley deposits $500 into an investment fund each January 1 starting in 2005 and continuing to…

A: Annual deposit from Jan 1 2005 = $ 500 Period from Jan1 2005 to Jan 2019 = 14 Years Number of annual…

Q: Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old. She…

A: Present value = Future value/(1 + r)n Present value = Amount needed to be deposited Future value =…

Q: Determine the present value of P6,800 paid at the end of each subsequent calendar quarter for 7…

A:

Q: James plans to fund his individual retirement account, beginning today, with 20 annual deposits of…

A: Annuity due formula: Future value = Amount*((1+Rate)^n -1)*(1+Rate) / Rate

Q: 10) Vanessa wants to withdraw $8,000 each year from July 1, 2025 through July 1, 2029. The…

A: Present value of withdrawals at july1,2025= 8000 + (8000*annuity factor of 4 years at 5%) =8000+…

Q: Tanysha plans to invest $15,000 at the beginning of each year for the next 10 years. If her invested…

A: An annuity is defined as the series of payment made each year for a definite period of time. In…

Q: Tandang Sora has deposited P33,000 today in an account which will earn 10 percent annually. She…

A: Given information: Present value : P33,000 Rate of interest : 10% Time period : 7 years Future…

Q: Garrett wants to accumulate at least $35,000 by depositing $1,5 month into a fund that earns…

A: Amount to be accumulated is $35000 Monthly deposit is $1500. Rate 4.5% compounded monthly

Q: Al Darby wants to withdraw $21400 (including principal) from an investment fund at the end of each…

A: In the given case, an amount of $ 21,400 will be withdrawn at the end of each year for next 5 years.…

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.