Calculate the accumulated value at the end of year 22 of the following payments made into a savings plan: £1963 paid at the end of each year for years 2 to 7 and then £839 paid at the beginning of each year for years 14 to 22. Consider that the fund accumulates compoundly at an effective rate of interest of 3.2% pa and there are made no withdrawals from the fund during the term. (correct answer = 29337.15)

Calculate the accumulated value at the end of year 22 of the following payments made into a savings plan: £1963 paid at the end of each year for years 2 to 7 and then £839 paid at the beginning of each year for years 14 to 22. Consider that the fund accumulates compoundly at an effective rate of interest of 3.2% pa and there are made no withdrawals from the fund during the term. (correct answer = 29337.15)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 9RE

See similar textbooks

Similar questions

Calculate the accumulated amount at the end of year 16 of the following regular series of payments made into a savings plan: £2413 paid at the end of each year for years 3 to 6 and then £1095 paid at the beginning of each year for years 14 to 16. Consider that the fund accumulates compoundly at an effective rate of interest of 5.7% pa and there are made no withdrawals from the fund during the term. (No tables, ONLY formulas, please)
Calculate the accumulated amount at the end of year 16 of the following regular series of payments made into a savings plan: £2400 paid at the end of each year for years 3 to 6 and then £1090 paid at the beginning of each year for years 14 to 16. Consider that the fund accumulates compoundly at an effective rate of interest of 5.7% pa and there are made no withdrawals from the fund during the term.
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $49,000; money earns 4% compounded semiannually for 13.5 years
For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round your answer to the nearest cent.) Sinking Fund Payment Payment Frequency Time Periods (years) Nominal Rate (%) Interest Compounded Future Value (Objective) $______ every year 14 8 annually $350,000
A company needs to set aside a fund to meet the following future annuity payments to an individual: £1443 paid at the end of each year for the first 4 years followed by £1441 paid at the end of each year up until year 15 (inclusive). Assuming an effective rate of interest of 6.9% pa throughout the entire period, how much total fund the company needs to hold today in order to meet these payments? Express your answer in £s to 2 decimal places. (correct answer = 13214.59)
You deposited $8,300 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. Factors to use for n=10, I =8% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS) Present Value of $1 0.46319Present Value of an Annuity of $1 6.71008 Future Value of $1 2.15892 Future Value of an Annuity of $1 14.48656 What is the total interest earned for the 10 years?
Find the periodic payments PMT necessary to accomulate the given account in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $20,000 in a fund paying 2% per year, with quarterly payments for 20 years. PMT = $
Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. 4) $8900; money earns 5% compounded annually; 13 annual payments Please show all workings step by step.
In the information given int he following case, determine the number of years that the given oridinay annuity cash flows must continue inorder to provide the rate of return on the intial amount. Initial amount: $26,800 Annual Cash Flow: $6,561 Rate of Return: 6%
An enterprise needs to set aside a fund to meet the following future annuity payments to an individual: £1450 paid at the beginning of each year for the first 12 years; followed by £1500 paid at the beginning of each year up until year 18 (inclusive). Assuming an effective rate of interest of 5.4% pa throughout the entire period, how much total fund the company needs to hold today in order to meet these payments? no tables, only formulas, please
On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 2. What is the total interest for the 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 3. How much interest revenue did the fund earn in 2021 and in 2022?
Please dont answer in spreadsheet format, i wont understand Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. 4) $8900; money earns 5% compounded annually; 13 annual payments