2. An investor is setting up a fund which requires 20 years of contributions. The investor pays £50 per month for 20 years. All payments are made in arrears,i.e at the end of the period.The effective annual rate i = 9%.What is the value of the fund after 20 years?£ 数字Enter an answer correct to 2 decimal places.

The FV of an annuity refers to the value of its cash flows at a particular future date assuming it…

Answered: 2. An investor is setting up a fund…

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

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5. A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to $0. The first payment of $1 is made today. If the fund is used to purchase a ten-year level annuity with the first payment at twenty years from today, what is the amount of the level payment? (Assume an annual effective rate of interest of 4%.)
An investor is setting up a fund which requires 18 years of contributions. The investor pays £200 per month for 15 years. After 15 years, the payments increase by £10 for the subsequent 3 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 2%. What is the value of the fund after 18 years? £ 数字 Enter an answer correct to 2 decimal places.
You deposit the following, at the end of each year, into a growth mutual fund that earns 8% per year. Calculate the future total value of the fund at the end of 5 years. Enter Your answer rounded to decimal places, no dollar sign, ex. 5100.54 Year Deposit 1 8,000 2 6,000 3 4,500 4 9,500 5 6,000
You deposit 20,000 today into a fund paying ?(1)=8%. From this fund, you receive 10 payments of R, with the payments made at the end of 2 years, 4 years, 6 years, …, 20 years. What is R?
Annual deposits of $1000 are made at the end of each year for 25 years in a fund that pays 3% in the first 11 years and 4% in the remaining years. Find the AV of these deposits at the end of 25 years. Possible Answers A 36,002 B 37,391 C 38,105 D 39,420 E 40,471
4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for your final answer)
Annual contributions of $1,000 will be made to a TFSA for 25 years. The contributor expects investments within the plan to earn 7% compounded annually. What will the TFSA be worth after 25 years if the contributions are made: a. At the end of each year? (Round your answer to 2 decimal places.) TFSA's worth $ b. At the beginning of each year? (Round your answer to 2 decimal places.) TFSA's worth 69 c. By what percentage does the answer to Part (b) exceed the answer to Part (a)? (Do not round intermediate calculations and round your final percentage answer to 1 decimal place.) Percent difference %
4. Luxury Yacht company is preparing to buy a new yacht estimated to cost $750000 by making equal payments at the end of every three months into a sinking fund for six years. Interest earned by the fund is 7.5% compounded quarterly. 3 (a) What is the size of the quarterly payment made to the sinking fund? (b) How much of the maturity value of the fund will be interest? (c) What is the accumulated value of the fund after two years? (d) How much interest will the fund earn in the 15th payment interval?
Calculate the present value of a retirement fund if you put $1,750 in your savings account at the end of each of each quarter for the next 35 years? Assume that your savings account pays 8% compounded quarterly. O $20,277.13 O$82,030.04 O $83,670.64 O None of the answers are correct
On 1 January 2019, you invested £100 in a fund. A further £50 was invested on 1 January 2020. The values of the funds were: Date Fund Value (in £) 31 Dec 31 Dec 31 Dec 2018 2019 2020 0 105 242 Calculate the money-weighted rates of return over the period 1 January 2019 to 31 December 2020. Give your answer to 3 decimal places.
Find the size of each of 8 payments made at the end of each year into a 9% rate sinking fund which produces 55000 at the end of 8 years. payment size
A lump sum S deposited into either fund X or fund Y will be exactly sufficient to provide a perpetuity of $100 per year with the first payment due at the end of one year. Fund X will earn interest at an effective annual rate of 10% for the first 30 years and 6% thereafter. Fund Y will earn interest at a level effective annual rate of j. In which of the following ranges is j? someone help?

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