Holly invested $11,000 in a fund earning 6% compounded quarterly. She withdraws $900 from the fund at the end of every month with the first withdrawal being made 3 years from now.. How long will it take for the fund to be depleted? a. 1 years and 4 months b. 2 years and 5 months c. 4 years and 3 months d. 1 years and 3 months

Holly invested $11,000 in a fund earning 6% compounded quarterly. She withdraws $900 from the fund at the end of every month with the first withdrawal being made 3 years from now.. How long will it take for the fund to be depleted? a. 1 years and 4 months b. 2 years and 5 months c. 4 years and 3 months d. 1 years and 3 months

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

Similar questions

Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
Caleb 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 months
Cody invested $13,000 in a fund earning 6% compounded monthly. He withdraws $800 from the fund at the end of every quarter with the first withdrawal being made 2 years from now. How long will it take for the fund to be depleted? In years and months.
Emily 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.
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 cent
Laurence 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…
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 cent
Shane contributed $2,250 at the end of every 3 months into an RRSP fund earning 2.41% compounded quarterly for 11 years. a. What is the future value of the fund at the end of 11 years? b. What is the amount of interest earned over this period?
Meghan made equal deposits at the beginning of every 3 months into an RRSP. At the end of 6 years, the fund had an accumulated value of $55,000. If the RRSP was earning 3.50% compounded monthly, what was the size of the quarterly deposits?
Sarah deposited $26,500 into a fund at the beginning of every quarter for 16 years. He then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 4.89% compounded monthly. a. What was the accumulated value of the fund at the end of year 16? b. What was the accumulated value of the fund at the end of year 20? c. What is the total amount of interest earned over the 20-year period? Please use algebra with detials
carlos Contributed equal deposit at the end of every month for four years into an investment fund he then decided to stop making payments and left the money in the fund to grow for another three years the fan was earning 4.81% compounded monthly for the entire period and then accumulated amount at the end of the term was $80,000 a. calculate the amount in the fund at the end of the four years. b. calculate the size of the periodic deposit into the fund.
Bright Inc. will be receiving $5,400 at the end of every month for the next 4 years. If these payments were directly invested into a fund earning 5.50% compounded semi-annually, what would be the future value of the fund at the end of 4 years? Jamie invested $875 at the end of every month in an investment fund that was earning interest at a rate of 4.62% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.63% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. Round to the nearest cent b. Calculate the accumulated balance in his investment fund at the end of 10 years. Round to the nearest cent c. Calculate the total interest earned over the 10-year period.