5.1000 is deposited into Fund X, which earns an annual effective rate of 6%. At the end of eachyear, the interest earned plus an additional 100 is withdrawn from the fund. At the end of thetenth year, the fund is depleted.The annual withdrawals of interest and principal are deposited into Fund Y, which earns anannual effective rate of 9%.Calculate the accumulated value of Fund Y at the end of year 10.(A) 1519(B) 1819(C) 2085(D)2273(E)2431

Here,DepositAmount is $1,000Annual Effective Rate of Fund X is 6%Withdrawal is Interest plus…

Answered: 1000 is deposited into Fund X, which…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

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?
A company sold $250,000 bonds and set up a sinking fund that was earning 7% compounded semi-annually to retire the bonds in three years. If it made equal deposits into the fund at the beginning of every six months, construct a partial sinking fund schedule showing the details for the first two and last two payments and the totals of the schedule. Round the payment up to the next cent. Round all other values to the nearest cent Payment Period 0 1 2 .. Total Payment Interest Earned I A I Increase in the Fund Fund 11 A Balance $0.00 A I Book Value $250,000.00 ⠀
$4,250 was deposited at the end of every six months for 5 years into a fund earning 2.2% compounded semi-annually. After this period, the accumulated money was left in the account for another 4 years at the same interest rate. a) Calculate the accumulated amount at the end of the 9-year term. $ b) Calculate the total amount of interest earned during the 9-year period.
2,500 is deposited into Fund X, which earns an annual effective rate of zero. At the end of each year, 10% of the balance is withdrawn from the fund. The annual withdrawals are deposited into Fund Y, which earns an annual effective rate of 10%. Determine the accumulated value of Fund Y at the end of year 10. a) 2,806 b) 2,252
On January 1, 1977, TL 100 was invested in an annual compound interest of 6%. January 1, 1987 in the following years 200 TL has been invested. Purpose of deposit to the fund from 1 January 1990 from 1 January 1995 is the receipt of payment to end. 1990-1995 what is the amount of payments between
5
8. Construct a sinking fund table showing the growth of the fund over 5 years, if P950 is to be deposited at a rate of 6% compounded semi-annually.
Leon Inc. will deposit $53,700 in a 15% fund at the end of each year for 10 years beginning December 31, 2020. Click here to view factor tables What amount will be in the fund immediately after the last deposit? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, eg. 458,581.) Amount in fund %$4
5. An amount is deposited for eight years at 6%. If compounding occurs semiannually, then the table value is found at a) 6% for eight periods. b) 3% for eight periods. 3% for 16 periods. 6% for 16 periods 6. Sue Gray wants to withdraw $10,000 (including principal) from an investment fund at the beginning of each year for three years. How should she compute her required initial. investment at the beginning of the first year if the fund earns 12% compounded quarterly? a) $10,000 times the present value of a 3-period, 12% annuity due of 1. $10,000 times the present value of a 12-period, 3% annuity due of 1. $10,000 times the present value of a 3-period, 12% ordinary annuity of 1. d) $10,000 times the present value of a 12-period, 3% ordinary annuity of 1. moro Pr
Sean'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)
You are given: i. Fund X accumulates at an interest rate of 8% compounded quarterly. ii. Fund Y accumulates at an interest rate of 6% compounded semiannually. iii. At the end of 10 years, the total amount in the two funds combined to $1000. iv. At the end of 5 years, the amount in Fund X is twice that in Fund Y. Calculate the total amount in the two funds at the end of 2 years.
3. Find the interest rate needed for the sinking fund to reach the required amount. Assume that the compounding period is the same as the payment period. FU $13,690 to be accumulated in 3 years; quarterly payments of $1025 The interest rate needed is approximately %. (Type an integer or decimal rounded to two decimal places as needed.)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS