Rose deposits P20,000 into a fund that earns 7.5% interest payable quarterly while Jack deposits at the same time P22,000 into a fund that earns a constant force of interest of r. After 2 years and 6 months, the value of their deposits are the same. Determine the constant force of interest rate r. O 3.22% 3.32% O 3.42% 3.52% 3.62%
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- Ben invested P5000 in a fund at the beginning of every month for five years. The fund earning an interest rate of 5% compounded monthly. What was the total amount invested? a. None of the above b. P266, 057.50 c. P99, 378.77 d. P22, 729.75Pearl 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=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 $50,123
- Suppose 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%Red Company invested $10,000 in a fund that was earning interest at a rate of 4.00% compounded semi-annually. After 2 years and 6 months, the company transferred these funds to another investment that was earning interest at 5.50% compounded monthly. a. What is the balance in the fund at the end of 2 years and 6 months? $11,040.81 Round to the nearest cent b. What is the balance in the fund at the end of 6 years (from the initial investment)? $0.00 Round to the nearest cent c. By what amount did the fund grow during the 6 year period? Round to the nearest cent Give typing answer with explanation and conclusionSean's investment of $81,400.00 in a fund matured to $155,777.80 in 8 years. If the interest in the fund is compounded semi-annually, calculate the following rounded to two decimal places. a. Periodic interest rate (i)(i) % b. Nominal interest rate (j)
- Mr. Deneau accumulated $98000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $5400 at the end of every three months from the fund. If interest is 4.1% compounded annually, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months).Jeff deposits 10 into a fund today and 20 fifteen years later. Interest for the firstten years is credited at a nominal discount rate of d compounded quarterly, and thereafterat a nominal interest rate of 6% compounded semiannually. The accumulated balance in thefund at the end of 30 years is 100. Calculate d.Anton deposits P400,000 today and another P200,000 in 6 years into a fund paying simple interest of 5% per year. Andres on the other hand made the same two deposits but P400,000 will be deposited t years from today and P200,000 will be deposited 2t years from today. His account earns an annual effective rate of 4%. At the end of 15 years, the accumulated amount of Anton’s deposits equals the accumulated amount of Andres deposits. Calculate t (round off to the nearest two decimal places).
- John invests 2000 at time 0 in a fund earning 7% convertible quarterly, but payable annually. He reinvests each interest payment in individual separate funds each earning 8% convertible quarterly, but payable annually. The interest payments from the separate funds are accumulated in a side fund that guarantees an annual effective rate of 9%. Determine the total value of all funds at time 10.On March 15, 20x1, Ashe Company adopted a plan to accumulate P5,000,000 by September 1, 20x5. Ashe plans to make four equal annual deposits to a fund that will earn interest at 10% compounded annually. Ashe made the first deposit on September 1, 20x1. FV of 1 at 10% n-4 1.46 FV of OA of 1 at 10% n-4 4.64 Fv of AD of 1 at 10% n-4 5.11 What is the amount of annual deposit?Two years from now. My Orly needs P32,000 to liquidate a certain debt. If money is worth 5% compounded quarterly. a) How much must he deposit at the end of each quarter to provide for the payment of the debt? b) Form a sinking fund table showing the growth of the fund for two years.