Kristen invested the profit of her business in an investment fund that was earning 3.25% compounded monthly. In 5 years, she began withdrawing $4,500 from this fund at the end of every 6 months. If the money in the fund lasted for the next 4 years, how much money did she initially invest in the fund? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit solutions. $ Round to the nearest cent your
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- Comprehensive The following are three independent situations: 1. K. Herrmann has decided to set up a scholarship fund for students. She is willing to deposit 5,000 in a trust fund at the end of each year for 10 years. She wants the trust fund to then pay annual scholarships at the end of each year for 30 years. 2. Charles Jordy is planning to save for his retirement. He has decided that he can save 3,000 at the end of each year for the next 10 years, 5,000 at the end of each year for Years 11 through 20, and 10,000 at the end of each year for Years 21 through 30. 3. Patricia Karpas has 200,000 in savings on the day she retires. She intends to spend 2,000 per month traveling around the world for the next 2 years, during which time her savings will earn 18%, compounded monthly. For the next 5 years, she intends to spend 6,000 every 6 months, during which time her savings will earn 12%, compounded semiannually. For the rest of her life expectancy of 15 years, she wants an annuity to cover her living costs. During this period, her savings will earn 10% compounded annually. Assume that all payments occur at the end of each period. Required: 1. In Situation 1, how much will the annual scholarships be if the fund can earn 6%? How much at 10%? 2. In Situation 2, (a) How much will Charles have at the end of 30 years if his savings can earn 10%? How much at 6%? (b) If Charles expects to live for 20 years in retirement, how much can he withdraw from his savings at the end of each year if his savings earn 10%? How much at 6%? (c) How much would Charles need to invest today to have the same amount available at the time he retires as calculated in Situation 2(a) at 10%? How much at 6%? 3. In Situation 3, how much will Patricias annuity be?Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows 60,000 from a local bank. He uses 40,000 of the loan to buy a building and the remaining 20,000 for equipment. During the first year, the store has a loss of 24,000. How much of the loss can Carlos deduct if the loan from the bank is nonrecourse? How much does Carlos have at risk at the end of the first year?Cody invested the profit of her business in an investment fund that was earning 2.25% compounded monthly. She began withdrawing $5,000 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 3 years, how much money did she initially invest in the fund?
- Steven invested the profit of his business in an investment fund that was earning 3.50% compounded monthly. He began withdrawing $2,500 from this fund every 6 months, with the first withdrawal in 3 years. If the money in the fund lasted for the next 4 years, how much money did he initially invest in the fund? $ Round to the nearest cent.Robert invested the profit of his business in an investment fund that was earning 3.25% compounded monthly. He began withdrawing $4,000 from this fund every 6 months, with the first withdrawal in 5 years. If the money in the fund lasted for the next 7 years, how much money did he initially invest in the fund?Jesse invested the profit of her business in an investment fund that was earning 2.25% compounded monthly. She began withdrawing $4,000 from this fund every 6 months, with the first withdrawal in 5 years. If the money in the fund lasted for the next 3 years, how much money did she initially invest in the fund? (Please show me every single step of the BA II calculator.) Please answer with explanation. I will really upvote. Thanks
- Kayla contributed equal deposits at the end of every month for 4 years into an investment fund. She then decided to stop making payments and left the money in the fund to grow for another 4 years. The fund was earning 3.92% compounded monthly for the entire period and the accumulated amount at the end of the term was $60,000. a. Calculate the amount in the fund at the end of 4 years. Round to the nearest cent B. Calculate the size of the periodic deposits into the fund. Round to the nearest centEmily contributed equal deposits at the end of every month for 3 years into an investment fund. She then decided to stop making payments and left the money in the fund to grow for another 2 years. The fund was earning 3.81% compounded monthly for the entire period and the accumulated amount at the end of the term was $80,000. a. Calculate the amount in the fund at the end of 3 years. Round to the nearest cent b. Calculate the size of the periodic deposits into the fund.Elaine is the CEO of Vandelay Industries and wants to create a sinking fund to make a purchase of new technology in three years. She anticipates this capital expense will be $20,000. If the sinking fund earns at an annual rate of 5% compunded quarterly, determine the quarterly installment that should be deposited into the fund.
- Jordan deposited $23,500 into a fund at the beginning of every quarter for 20 years. He then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.31% compounded monthly. a. What was the accumulated value of the fund at the end of year 20? Round to the nearest cent b. What was the accumulated value of the fund at the end of year 23? Round to the nearest cent c. What is the total amount of interest earned over the 23-year period? Round to the nearest centCaleb invested $12,500 in a fund earning 7% compounded quarterly. She withdraws $650 from the fund at the end of every month with the first withdrawal being made 4 years from now. How long will it take for the fund to be depleted? 2 years and 5 months 3 years and 5 months 5 years and 4 months 2 years and 4 monthsLaurence contributed $4,135 at the end of every 6 months to an RRSP fund earning 7.11% compounded semi-annually for 12 years. a. What was the future value of the fund at the end of the term? Round to the nearest cent b. What was the amount of interest earned over this period? How much money should Zhang invest today in a fund that earns interest at 3.36% compounded quarterly, if she wants to receive $4,500 at the end of every 6 months for the next 4 years? Timothy planned to buy a house but could afford to pay only $13,500 at the end of every 6 months for a mortgage with an interest rate of 5.50% compounded semi-annually for 20 years. She paid $24,750 as a down payment. a. What was the maximum amount she could afford to pay for a house? Round to the nearest cent b. What was her total amount spent for the house through the mortgage period including the downpayment (not taking the time-value of money into account)? Round to the nearest cent c. What was the total amount of…