Keisha had a fund of RM30,000 and plans to invest her money in two different schemes. She invested 60% of her money in Scheme A that pays 7% compounded semiannually. The balance was invested in Scheme B that pays k% copounded quarterly. After 8 years, the accumulated amount for both of her investments was RM60,000. Find k
Q: 3. A person deposits $18,000 in a fund that pays interest at the rate of 6% continuously. He…
A:
Q: 13. happy Corp. established a fund where they pay $200 annually into the fund. The interest rate…
A: Year Year-1 Year-2 Year-3 Year-4 Year-5 Total Amount that $200 invested each year will become…
Q: Shah Rukh invested RM5 000 in an investment fund for three years. At the end of the investment…
A: Simple interest is the amount of interest which is incurred or earned over the period of time. Under…
Q: An engineer received a bonus of $12,000 that he will invest now. He wants to calculate the…
A: Compute the down payment.
Q: 1. Abbigail wish to establish a trust fund from which her daughter can withdraw $6,000 every six…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Cris Li decided to go into the business at the age of 23, he deposits a certain amount and will…
A: Depositing a fixed amount of money in equal intervals of time for a certain period is called…
Q: a. What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Mary Stahely invested $ 2500 in a 48-month certificate of deposit (CD) that earned 8.5% annual…
A: Simple Interest is calculated by multiplying the interest rate by the principal by the time period.…
Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…
A: An annuity is a series of cash flows that involve an equivalent periodic amount over a specific time…
Q: Henry Bogut just received a signing bonus of $1,086,900. His plan is to invest this payment in a…
A: Present value and future value is a concept of time value of money. It is considered as an important…
Q: ) Betty Kay has a contract in which she will receive the following payment for the next 5 year:…
A: Present value of cash outflows needs to be compared with the present value of cash inflows. If the…
Q: How much should Nina set aside and invest in a fund earning 9% compounded quarterly if she wants to…
A: The amount invested today is the present value of accumulated amount after 3 years and 3 months at…
Q: 5. A man decided to sell his farm and to deposit the fund in a bank. After computing the interest,…
A: In this, we have to calculate the present value of annuity today.
Q: how much can we paid in scolarships at the end of half year if $90.000 is deposited in a trust fund…
A: Amount Deposited = $90,000 Annual Interest Rate = 8.5%Semiannual Interest Rate = 8.5% / 2Semiannual…
Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…
A: Annual scholarship for first 5 years = Php. 5,000 Annual scholarship for next 5 years = Php. 8,000…
Q: Maya has savings of $50,000. She invests in a bond mutual fund that 4% interest each year. Ignoring…
A: Total savings are the accumulated value of the investment including interest. In case of simple…
Q: 7. Manolo deposited P 120 000 in a fund that pays 5% compounded annually for the first 3 years, 4 ½%…
A: Interest is a value which is received on a deposited amount for the period. It increases the value…
Q: 1. Millet wants to provide a P200,000 graduation gift for her daughter Mae who is now 16 years old.…
A: It is the case where multiple questions have been asked and no question has been specified so as per…
Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he…
A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper…
Q: Mr. Cruz wishes his daughter to receive P1, 000, 000 ten years from now. What amount should he…
A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…
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: Paolo invested Php 120,000 in a mutual fund where the net asset value per unit is 4.578. After one…
A: Net asset value per unit is the market price per unit at which a mutual fund scheme can be…
Q: . $1,000 are deposited in the fund at the end of each of the first 10 years. This means that this is…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…
A: Fund grant for each year = P120,000 for 5 years Grant each quarter = P30,000 for next 5 years Grant…
Q: llaine invested Php 50,000 in a bond fund for 3 years that pay 2.75% annually. If interest will be…
A: The bonds are paid coupon payment each period but there is withholding tax to be paid on the coupon…
Q: Riley invests to a 7-year mutual fund. She invests P50,000 that has a net asset value of P1.25 per…
A: The question is based on the concept to find a return from investment in a mutual fund(MF). Return…
Q: Maria deposits $1,200, $500, and $2,000 at t = 1, 2, and 3, respectively. If the fund pays 8%…
A: FUTURE VALUE FORMUA: FUTURE VALUE = PRESENT VALUE×1+RNWHERE,R= RATE PER PERIODN=NUMBER OF PERIOD
Q: A person wants to accumulate RM 20,000 for his marriage fund at the end of 8 years. If he deposits…
A: The future value is the future worth of the amount that will be paid or received at future.
Q: Mr. Jones will invests P 5,000 in a fund at the end of each 6 months to accumulate P 100,000 to buy…
A: An annuity is the total of all periodic payments or investments made at a fixed rate over a certain…
Q: Consider the following independent situations. a. Mike Finley wishes to become a millionaire. His…
A: a. Future value factor = Future value / Initial fund = $1,000,000 / $92,296 = 10.83471 Find the…
Q: 3. Tatsumi invested Php 10,000 now for the college education of his three-year old son. If the fund…
A: Amount invested (A) = Php 10000 Duration till 18th age = 15 years Let the amount son will get from…
Q: determine the quarterly installment that should be deposited into the fund.
A: Introduction: Sinking fund can be defined as a type of fund which is created for repaying the debt.…
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: Phyllis invested $9,000, a portion earning a simple interes
A: Phyllis invested $9,000, a portion earning a simple interest rate of 4.5 1 2 % per year…
Q: 3) Michael invests an amount $1,000 into a fund at the beginning of each year for 10 years. At the…
A: Future value of the annuity includes the amount being deposited and amount of compound interest…
Q: Ahlam invests a certain fund worth OMR 6,000 in Bank Muscat for 3 years. At the end of this period,…
A: The answer for the multiple choice question and relevant working are presented hereunder :
Q: Sheila started to deposit P18,000 semi-annually in a fund that pays 5% compounded semi-annually. How…
A: Semiannual deposit (D) = P 18000 r = 5% per annum = 2.5% semiannually n = 10 years = 20 payments
Q: Betty Kay has a contract in which she will receive the following payment for the next 5 year:…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Siti Khadijah invested RM30 000 in Sudir Mutual Fund and Kajol Mutual Fund.Sudir Mutual is giving a…
A: Weight of Investment: The proportion of an investment portfolio that a given holding or kind of…
Q: mployee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly.…
A: The present worth of fund is the equivalent value of fund today considering time and interest rate…
Q: Andrew Bogut just received a signing bonus of $1,000,000. His plan is to invest this payment in a…
A: Here, To Find: Part A. Number of years =? Part B. Annual deposits =?
Q: May deposits PhP 20,000 into a fund at the beginning of nd of 15 years, she makes an additional…
A: The present value of the future payments to be received will give the the future value of payments…
Q: Alan invests a total of $11,000 in three different ways. He invests one part in a mutual fund which…
A: Let investment in the bank = y Investment in mutual fund = 2y Investment in government bond = 11,000…
Q: Ben invested P5000 in a fund at the beginning of every month for five years. The fund earning an…
A: Monthly investment (P) = P 5000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual…
Q: Jacob invested the profit of his business in an investment fund that was earning 3.75% compounded…
A: Using excel PV function
Q: A 1,000,000-trust fund was set up and to be used by an 8-year old nephew when he goes to college. In…
A:
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: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: What are the After-tax annualized returns from the following two funds if you invest $1000 in each…
A: Compounding is a technique through which future value of present amount is calculated at fixed rate…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Afif had a fund of RM55,000 and planned to invest his money in two different schemes. He invested 60% of his money in scheme A which pays 9% compounded quarterly. The balance was invested in Scheme B which pays k% compounded semi-annually. After 8 years, the accumulated amount for both of his investments was RM113,000. Find k.At the start of the year, Piotr has an investment fund worth $30,000.00. 4 months later the fund is worth $30,750.00 and Piotr deposits another $3,000.00. 4 months after that, the fund is worth $34,425.00 and Piotr withdraws the $3,000.00 his deposited the time before. At the end of the year the fund is worth $31,425.00. a) What is the Dollar Weighted Return for Piotr's investment? b) What is the Time Weighted Return for the investment fund? c) What would the fund balance at the end of year have to be to make the Time Weighted Return for the year equal the Dollar Weighted Return for the year? d) In this case (TWR = DWR) what was the return on the investment fund in the last time period?Pearl Alvarez is investing $323,200 in a fund that earns 8% interest compounded annually. What equal amounts can Pearl withdraw at the end of each of the next 20 years? (Round factor values to 5 decimal places, eg 1.25124 and final answer to O decimal places, eg. 458,581) Yearly withdrawals=
- 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…May deposits PhP 20,000 into a fund at the beginning of each year for 10 years.At the end of 15 years, she makes an additional deposit of X.At the end of 20 years, May uses the accumulated balance in the fund to buy a perpetuity-immediate with annual payments of PhP 30,000 per year for 10 years, and PhP 15,000per year thereafter.Interest is credited at an annual effective rate of 6%. Calculate X.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?
- Ralph invests $50,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 4.0 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses (or 12b-1 fees) are 0.80 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 3 percent each year paid on the last day of the year. What is the value of investment at end of year 1? $48,000 $49,440 $49,050 $50,123 If the investor reinvests the annual returns paid on the investment, what is the value of investment at the end of year 2?. $48,000 $49,440 $49,050 $50,123Suppose an individual invests $20,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 2.5 percent of the amount invested and is deducted from the original funds invested. In addition, annual fund operating expenses are 0.55 percent. The annual fees are charged on the average net asset value invested in the fund and are recorded at the end of each year. Investments in the fund return 7 percent each year paid on the last day of the year. If the investor reinvests the annual returns paid on the investment, calculate the annual return on the mutual funds over the two-year investment period. Select one: a. 3.77% b. 5.09% c. 7.54% d. 8.86% e. 10.18%A 1,000,000-trust fund was set up and to be used by an 8-year old nephew when he goes to college. In 8 years, how much will the fund be if the investment rate is 7.5% compounded quarterly?
- a. What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by the end of the 8th year, if the fund earns 8% interest, compounded annually? b. What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by the end of the eighth year, if the fund earns 8% interest, compounded annually? c. Diane Ross has $20,000 to invest today at 9% to pay a debt of $47,347. How many years will it take her to accumulate enough to liquidate the debt? d. Cindy Houston has a $27,600 debt that she wishes to repay 4 years from today; she has $19,553 that she intends to invest for the 4 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt?Chuck Brown will receive from his investment cash flows of $3,165, $3,460, and $3,810 at the end of years 1, 2 and 3 respectively. If he can earn 7.5 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years? (Round to two decimal places.)Assume that Karen Williams desires to accumulate $1,000,000 in 15 years using her money market fund balance of $209,004. At what interest rate must Karen’s investment compound annually? (Round answer to 0 decimal places, e.g. 5%.) Interest rate %