Using the appropriate interest table, provide the solution to each of the follofour questions by computing the unknowns. Click here to view factor tables (a) What is the amount of the payments that Steve Winslow must make at the end of each of 9 years to accumulate a fund of $81,600 by the end of the 9th year, if the fund earns 9% interest, compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Payment at the end of each year $Type your answer here

Using the appropriate interest table, provide the solution to each of the follofour questions by computing the unknowns. Click here to view factor tables (a) What is the amount of the payments that Steve Winslow must make at the end of each of 9 years to accumulate a fund of $81,600 by the end of the 9th year, if the fund earns 9% interest, compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Payment at the end of each year $Type your answer here

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 20P

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If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?
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
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.
a) An individual wishes to accumulate $1,700,000 in 20 years. If he wants to deposit a certain amount of fund annually in the first 10 years and do nothing in the following 10 years, what size deposit is required to meet the stated objective? Assume the annual compound interest rate is 4%. b) Solve the following, using interest rate at 7% compounded annually: i) What is the amount that will be accumulated in a sinking fund at the end of the 15th year if $200 is deposited in the fund at the beginning of each of the 15 years? ii) What uniform annual payment for 30 years is equivalent to spending $10,000 immediately, $11,000 at the end of 10 years, $12,000 at the end of 20 years, and $2,000 a year for 30 years?
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Using the appropriate interest table, provide the solution to each of the following four questions by computing the unknowns. 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 eighth year, if the fund earns 8% interest, compounded annually? b. Robert Hitchcock is 40 years old today and he wishes to accumulate $500,000 by his sixty-fifth birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his fortieth through his sixty-fourth birthdays. What annual deposit must Robert make if the fund will earn 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…
An investor wants to accumulate $50,000 in a fund at the end of 20 years. If the investor deposit$1,000 in the fund at the end of each of the first 10 years and $1, 000 + X at the end of each ofthe second 10 years, find the value of X if the fund earns 7% effective. Do the following steps toanswer this problem: a. $1,000 are deposited in the fund at the end of each of the first 10 years. This means thatthis is an example of annuity-immediate. Compute for the accumulated value of the fund inthe first 10 years. Call this T.b. The value of the fund in the first 10 years is T . Solve for the future value of T at the end ofthe next 10 years. Use the formula Future value = P (1 + i) t. Call this answer FV . (2points)c. The target amount of the investor is $50,000. The investment made in the first 10 yearsalone will grow to the value FV at the end of 20 years. So, in the second 10 years, theaccumulated value of the investment must be $50, 000 − FV . What is this value? Call thisU .
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 %
On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual compound interest, which will be added to the fund balance at the end of each year.Required (round to the nearest dollar):1. What will be the balance in the account at the end of 10 years?2. What is the interest for the 10 years?3. How much interest revenue did the fund earn in the first year? the second year?
(Various Time Value Situations) Using the appropriate interest table, provide the solution to each of the following four questions by computing the unknowns.(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 eighth year, if the fund earns 8% interest, compounded annually?(b) Robert Hitchcock is 40 years old today and he wishes to accumulate $500,000 by his sixty-fifth birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his fortieth through his sixty-fourth birthdays. What annual deposit must Robert make if the fund will earn 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…
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).
PLEASE TYPE IT AND NOT HANDWRITTEN What annual deposit into a sinking fund at 5% compounded annually will be needed to raise half a million pesos at the end of 10 years to settle a loan? What is in the fund at the end of 5 years?