How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made.An account with quarterly compounding and an APR of 7.32%$ should be deposited today.(Do not round until the final answer. Then round to the nearest cent as needed.)Enter your answer in the answer box.Type here to search0 哥同

How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.32%

How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.32%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

See similar textbooks

Related questions

Q: How much must be deposited today into the following account in order to have a $135,000 college fund…

A: Present value = Future value/(1 + r)n Future value = 135,000 Quarterly interest rate (r) = 3.16%/4…

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: How much money must be deposited into an account paying interest at 5% compounded annually in order…

A: Given, Rate = 5% Amount =$2000

Q: How much money was deposited semiannually for the past 15 years if it is now sufficient to generate…

A: The future value of the amount deposited must be equal to the present value of the perpetuity.…

Q: How much money can be withdrawn at the end of 15 years if: a. $2,000 is deposited at the end of each…

A: The future value of the deposit is the value of the current deposits on a future date based on the…

Q: A 15-year, $500,000 loan will be repaid by the sinking fund method. Interest only must be paid at…

A: A sinking fund increases a company's creditworthiness, it allows a small corporation to offer a…

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

Q: A business must raise $57,000 in five years. What should be the size of the owners quarterly payment…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: A fund is to created by investing 900 at the end of every month for 9 years. IF money is worth 9%…

A: Monthly investment (C) = 900 Annual interest rate = 9% Monthly interest rate (R) = 9%/12 = 0.75%…

Q: a.) How much money must be invested at the end of each quarter for 25 years in a sinking fund that…

A: Here, Future value is 'FV' Present value or investment amount is 'P' Nominal interest rate is 'r'…

Q: fund is to be set up for an annual scholarship of $5000. If the first payment is due in three years…

A: Solved using Financial Calculator FV = 5000 N = 3 years * 4 = 12 I/Y = 6.2/4 = 1.55 CPT PV = -…

Q: Choi Home Repair needs to accumulate $24,000 in 6 years to purchase new equipment. What sinking fund…

A: Given: Future value: $24,000 Rate: 8%/4 = 2% Nper: 6*4 = 24

Q: wo years from now. My Orly needs P32,000 to liquidate a certain debt. If money is worth 5%…

A: Time Period = 2 years * 4 = 8 quarters Interest Rate = 5%/4 = 1.25% per quarter Future Value…

Q: A corporation creates a sinking fund in order to have $630,000 to replace some machinery in 8 years.…

A: Monthly Loan Payments: These are periodic payments made by the borrower for taking the loan from…

Q: business must raise $50,000 in 9 years. What should the size of the owners’ quarterly payments to a…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for…

A: using excel Goal seek to find out the fixed amount

Q: P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…

A: Semi annual deposit = P = P240,000 Interest rate = 11% Semi annual interest rate (r) = 11%/2 = 5.50%…

Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which…

A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4

Q: A Student loan totals $30,000 at graduation. The nominal interest rate is 12% compounded monthly,…

A: Total payments= 32 Total amount of loan (L)= 30000 Rate of interest (r) = 12%/12 = 1.0% per month…

Q: Eight equal deposits of $1,000 are made at the end of each year into a fund paying 8%. a. What is…

Q: Find the amount of each payment to be made into a sinking fund earning 9% compounded monthly to…

A: Data given: A=Amount to be accumulated = $86,000 P= Payment to be made = ? i=interest rate…

Q: Determine the amount that must be deposited every 3 months a fund paying 12% compounded quarterly in…

A: Computation of the amount that must be deposited in order to have P25000in 8 years having 12%…

Q: Answer the Situation below correctly show your complete solution. A deposit of 120 000.00 Php is…

A: C. Since the payment is made monthly and the interest is also compounded monthly, the number of…

Q: Chris Spear invested $15,000 today in a fund that earns 8% compounded annually. To what amount will…

A: Future value = Investment amount x FVF(8%, 3years) = $15,000*1.25971…

Q: How much must a man place in a fund at the end of each month in order to have P12,500 at the end of…

A: Future value (FV) = P 12,500 Period = 4 Years Number of monthly deposits (n) = 4*12 = 48 Annual…

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: Choi Home Repair needs to accumulate $26,000 in 6 years to purchase new equipment. What sinking fund…

A: Dear student, we need to find future value of ordinary annuity factor by using table 12-1 in the…

Q: Choi Home Repair needs to accumulate $24,000 in 6 years to purchase new equipment. What sinking fund…

A: Frist we need to find future value annuity factor of ordinary annuity in table attach below question…

Q: Lovely Mae’s deposit of 100,000 is placed into a college fund at the beginning of every month for 10…

A: The annuity making payments at the beginning is referred as annuity due as provided in question.…

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: Current Attempt in Progress Maria Medavoy will invest $6,740 a year for 23 years in a fund that will…

A: Periodical Investments in Annuity can be broadly divided into two categories, Ordinary annuity and…

Q: 1. Bomac Steel sets aside $5000 at the beginning of every six months in a fund to replace equipment.…

A: Compuattion:

Q: At the beginning of each year? ___________ At the end of each year?

A: Information Provided: Funds amount = $300,000 Annual earning rate = 7.75% Term = 25 years

Q: What is the size of the scholarship payments that students at a college would receive at the end of…

A: The scholarship amount will be the quarterly interest earned on such endowment fund

Q: How much should GlassilueCat invest in a fund to be able to withdraw $22.000 at the end of every 3…

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: A corporation decides to deposit fixed payment per account earning 9% interest per year in order to…

A: Amount required after 9 years 235000 Period in years 9 No of period (Quarterly) 36 Rate…

Q: You deposit $1,000 in a fund at the end of each year for a 10- year period. The fund pays 5%…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

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: 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: What is the accumulated value of periodic deposits of $5,000 made into an investment fund at the…

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

Q: A firm is required to make a payment at the end of each year for 9 consecutive years. The annual…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

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

A: The future value is computed by multiplying the present money by the future value annuity factor. In…

Q: Jones Assoc. borrowed $40,000. The company plans to set up a sinking fund that will pay back the…

A: Given information: Amount borrowed : $40,000 time period : 8 years rate of interest : 12%…

Q: Find the AV of these deposits

A: Time value of money (TVM) means that the amount received in the present period will have more…

Q: 240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…

A: Here the concept of annuity will apply. This is the case of an annuity due as the payments are made…

Q: . How much must a man place in a fund at the end of each month in order to have P12,500 at the end…

A: Future value (FV) = P 12500 Period = 4 Years Number of monthly payments (n) = 4*12 = 48 Interest…

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…

Question

How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made.
An account with quarterly compounding and an APR of 7.32%
$ should be deposited today.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Enter your answer in the answer box.
Type here to search
0 哥同

Expert Solution

Step 1 Introduction

the question is based on the concept of Future value

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

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

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
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.