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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Jimmy deposits $3,600 now, $ 2,500 3 years from now, and $ 5,800 6 years from now. Interest is 6 % for the first 3 years and 7 % for the last 3 years. (Round your answers to the nearest whole dollar. The tolerance is +/- 4.00) a. How much money will be in the fund at the end of 6 years? $ b. What is the present worth of the fund? $ c. What is the uniform series equivalent of the fund (uniform cash flow at end of years 1-6)? 69
2. An investor is setting up a fund which requires 10 years of contributions. The investor pays £150 per month for 10 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 6%. What is the value of the fund after 10 years? £ 数字 Enter an answer correct to 2 decimal places.
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2.
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Serena Medavoy will invest $7,680 a year for 20 years in a fund that will earn 4% annual interest. Click here to view factor tables. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.) First payment today First payment at year-end $ +A $
Find the amount of each payment to be made into a sinking fund earning 8% compounded monthly to accumulate $51,000 over 8 years. Payments are made at the end of each period The payment size is s (Do not round until the final answer. Then round to the nearest cent.) TE
26. To create a fund of P1,000,000, how many deposits of P48,000 must be placed at the beginning of each month if money accumulates at the interest rate of 6% compounded monthly? Use 2 decimal places for your final answer
An annual deposit of P1,500.00 is placed on a fund at the end of each year for 6 years. If the fund invested has a rate of interest of 5% compounded annually, how much is the worth of this fund at the end of 9 years? O a. P11,118.10 O b. P11,821.10 O c. P11,181.10 O d. P11,811.10
8. An education fund will offer a P40, 000 annual scholarship for the first five years, a P60, 000 scholarship for the next five years, and a P90, 000 scholarship after that. One year before the first scholarship is given out, the fund will be established. Interest is paid on the fund at a rate of 4 1/2 percent. a. What sum of money must be deposited now? b. What is the amount left in the fund after fifth P40, 000 was withdrawn? c. What is the amount left in the fund after the fourth P60, 000 was withdrawn?

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