Mr Jim retired from Nestle and received a sum of $900,000 on behave of service excellence. He opted to deposit it in Mutual Fund and enjoy yearly payments for next 15 years of his life. If the rate decided between them is 12% compounded annually. Find out what amount will he receive each year

Q: On a girl's 10th birthday, her father started to deposit P5,000 quarterly at the end of each term in…

A: Convert 1% compounded monthly to its equivalent interest rate for quarterly interval. Here, 'R'…

Q: When will the girl  receive the money if the fund is invested at 8% compounded quarterly?

A: Present Value: It represents the current worth of a future sum of money or future cash flows.  To…

Q: Julia Baker died, leaving to her husband Brent an insurance policy contract that provides that the…

A: Present value:   The value of today’s amount to be paid or received in the future at a compound…

Q: ow January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both turned 30…

A: Power of compounding is very much as time period extends much as period increase value goes on…

Q: Ricky, an executive VP contemplating retirement on his sixty fifth birthday, decides to create a…

A: The present value is the present worth of the amount that has to be paid or received in future.

Q: What will be the interest rate per interest period if convert to compounding monthly?     1.9967%…

A: Effective annual rate (EAR) refers to the rate of interest which is an outcomes of compounding…

Q: Mr. Larsen's will directed that $209,000 be invested to establish a perpetuity making payments at…

A: Investment amount = $209000 Let the monthly payment = M r = 6% per annum = 0.5% per month Investment…

Q: How much would Divya be required to include in her income for tax purposes?

A: RRIF stands for the retirement fund which is the acronym and each alphabet stand for R = registered…

Q: Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Carl is the beneficiary of a $24,000 trust fund set up for him by his grandparents.  Under the terms…

A: Excel Spreadsheet:

Q: . Your grandmother has established a trust fund that pays you $3,500 each year for 15 years. upon…

A: Given: CF=$3500t=15 yearsr=7% i.e 0.07

Q: AC entered into an investment fund four years ago. The investment fund has an interest rate of 3%…

A: Interest rate is 3% compounded quaterly for first 4 years Interest rate for next 5 years us 4.5…

Q: Donna is 40 years old today and she wishes to accumulate $2,240,000 by her sixty fifth birthday so…

A: SOLUTION- LET THE AMOUNT TO BE DEPOSITED ANNUALLY =X RATE OF INTEREST =6% P.A CURRENT AGE =40 YEARS…

Q: A professor wishes to provide a fund for his retirement such that from his 60th to 70th birthdays he…

A: Data given: Professor will invest equal amount from 41st to 59th birthday = 19 years. This fund will…

Q: y the condition of a will, the sum of $ 2,000 is left to a girl to be held in trust fund by her…

A: Investment (PV) = $ 2000 Future value (FV) = $ 5,000 Annual interest rate = 8% Quarterly interest…

Q: It is now January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both…

A: Future Value: It is the amount which  is expected to be worth in the future.

Q: until now has been disappointed with Jerry, hence has not given him anything, but they recently…

A: Future value : The value of assets at a future date is referred to as future value. It is the…

Q: A couple received a $131,000 inheritance the year they turned 48 and invested it in a fund that…

A:

Q: Maria Alvarez is investing $300,000 in a fund that earns 4% interest compounded annually. What equal…

A: Compound interest refers to addition of interest to principal sum of loan or deposit.

Q: Kayla contributed equal deposits at the end of every month for 4 years into an investment fund. She…

A: As per the given information: Interest rate - 3.92% compounded monthly Total time period - 8 years…

Q: Jenna made equal deposits at the beginning of every 3 months into an RRSP. At the end of 6 years,…

A: Quarterly deposit = P Future value  (FV) = $55,000 Interest rate = 3.50% Quarterly interest rate (r)…

Q: John Weatherspoon,a super salesmancontemplating retirement onhis fifty-fifth birthday, decides to…

A: Answer) Calculation of amount of fund to be accumulated Amount of fund to be accumulated = Amount to…

Q: It is now January 1, 2015. Tom and Jerry are cousins who were both born on January 1, 1985. Both…

A: The grandfather of Tom put $4000 into the trust annually for 46 years that will be paid to Tom on…

Q: Stella has $3,000,000 in her investment fund. She wishes to withdraw $338,868 at the end of each of…

A: In the given question, the amount to be invested today is the present value of a series of…

Q: Ryan inherited an annuity worth $3,280.16 from his uncle.  The annuity will pay him 5 equal payments…

A: Answer and calculations are given below

Q: Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday,…

A: Calculate PVIFA (Present value of interest factor annuity) at 8% for 4 years as follows: The PVIFA…

Q: who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800…

A: Prices increase each year by the rate of inflation and may grow to double from existing levels over…

Q: On the day his daughter was born, Engineer Ang deposited to a trust company a sufficient amount of…

A: A = P (1 + r/n)^(nt), where P is the initial principal balance, r is the interest rate, n is the…

Q: Abul plans to retire in exactly 20 years. His goal is to create a fund that will allow him to…

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

Q: On a girl's 10th birthday, her father started to deposit P5,000 quarterly at the end of each term in…

A: The future value of a cash flow is the future worth of a cash flow at a rate of interest. Future…

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 interest rate is the amount charged by a lender to a borrower and is expressed as a percentage…

Q: Alan is investing $40,000 in a fund that earns 5% interest compounded annually. Click here to view…

A: Present Value of annuity refers to the present value of all the future payments of and series of…

Q: On Sarah’s 18th birthday, she creates a trust fund to pay her a sequence of nine semiannual payments…

A: pva=A×1-11+RMM×NRM A=ANNUITY R=RATE OF INTEREST M=FREQUENCY OF COMPOUNDING N=NUMBER OF YEARS

Q: Linda Smith paid $25,000 in premiums on a 20-year endowment policy on her life. The policy has a…

A: Taxable income to be included in case of endowment policy  =  face value of the policy - Premium…

Q: nnifer started to deposit ₱1,000 monthly in a fund that pays 6% compounded quarterly. How much will…

A: In this we need to calculate the future value of annuity.

Q: n the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…

A: Future Value(FV) is ascertained to know the expected value of current amount that will be invested…

Q: A young man is the beneficiary of a trust fund established for him 18 years ago at his birth. If the…

A: Future value formula: Future value =present value×1+rmm×n where, r=rate m=frequency of compounding…

Q: A special endowment assurance policy is issued to a male aged 55 and a female aged 50 with a term of…

A:

Q: By the conditions of a will, the sum of P20,000 is left to a girl to be held in a trust fund by her…

A: When the interest is computed on the principal balance along with the accumulated interest is…

Q: At the age of 50, Lala gave money to the insurance company with an agreement that Lala would receive…

A: Annual Amount = 2,000,000 End of year payments Assuming Interest Rate = 10%

Q: Juan Reyes inherited P280,000 on his 30th birthday. This he placed in his own pension fund (bank…

A: Compounding is a technique which is used to compute the future value (FV) of the present amount by…

Q: By the condition of the will, the sum of P20,000 is left to a girl to be held in trust fund by her…

A: Here, we need to use the future value concept, which is given by  FV = PV(1+r)n Where, PV = present…

Q: George More is a participant in a defined contribution pension plan that offers a fixed-income fund…

A: Annuity refers to the investment plan which pays regular returns after a specific period of time.…

Q: Billy wants to prepare funds for when he retires such that from his 60th to 70th years he will be…

A:

Q: A couple received a $131,000 inheritance the year they turned 50 and invested it in a fund that…

A: Information Provided: Inheritance amount = $131,000 Interest rate = 6.4% compounded semi-annually…

Q: Shane contributed $2,250 at the end of every 3 months into an RRSP fund earning 2.41% compounded…

A: Here, Amount deposit after each interval = $2,250 Interest rate = 2.41% Time period = 11 years To…

Q: Jeff wishes to accumulate $7,000 in 6 years. Use the appropriate formula to find the sinking fund…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…