A company plans to make four annual deposits of $2,250 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $2,250 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $2,250 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $2,250 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $2,250 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. Complete this question by entering your answers in the tabs below. Required 1 $ Deposit Amount Required 2 The $2,250 annual deposits are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. 2,250 Required 3 Required 4 Number of Interest left in Payments Fund Fund Balance < Required 3 < Prev 3 of 3 Required 4 > ▬▬▬▬ Next
A company plans to make four annual deposits of $2,250 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $2,250 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $2,250 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $2,250 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $2,250 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. Complete this question by entering your answers in the tabs below. Required 1 $ Deposit Amount Required 2 The $2,250 annual deposits are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. 2,250 Required 3 Required 4 Number of Interest left in Payments Fund Fund Balance < Required 3 < Prev 3 of 3 Required 4 > ▬▬▬▬ Next
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:A company plans to make four annual deposits of $2,250 each to a special building fund. The fund's assets will be invested in
mortgage instruments expected to pay interest at 12% on the fund's balance.
Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Required:
Determine how much will be accumulated in the fund after four years under each of the following situations:
1. The $2,250 annual deposit are made at the end of each of the four years and interest is compounded annually.
2. The $2,250 annual deposit are made at the beginning of each of the four years and interest is compounded annually.
3. The $2,250 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly.
4. The $2,250 annual deposit are made at the beginning of each of the four years interest is compounded annually, and interest
earned is withdrawn at the end of each year.
Complete this question by entering your answers in the tabs below.
Required 1
$
Deposit
Amount
Required 2
The $2,250 annual deposits are made at the beginning of each of the four years interest is compounded annually, and interest
earned is withdrawn at the end of each year.
2,250
Required 3
Required 4
Number of Interest left in
Payments
Fund
Fund Balance
< Required 3
< Prev
3 of 3
Required 4 >
▬▬▬▬
Next
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