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deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year.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 Required 2 First deposit Second deposit Third deposit Fourth deposit The $2,250 annual deposits are made at the beginning of each of the four years and interest is compounded quarterly Note: Round your final answers to nearest whole dollar amount. ¡= Required 3 Required 4 n = $ Deposit 2,250 2,250 2,250 2,250 Fund Balance < Prev 3 of 3 ‒‒‒ ‒‒‒ ‒‒‒ 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deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year.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 Required 2 First deposit Second deposit Third deposit Fourth deposit The $2,250 annual deposits are made at the beginning of each of the four years and interest is compounded quarterly Note: Round your final answers to nearest whole dollar amount. ¡= Required 3 Required 4 n = $ Deposit 2,250 2,250 2,250 2,250 Fund Balance < Prev 3 of 3 ‒‒‒ ‒‒‒ ‒‒‒ 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
Required 2
First deposit
Second deposit
Third deposit
Fourth deposit
The $2,250 annual deposits are made at the beginning of each of the four years and interest is compounded quarterly
Note: Round your final answers to nearest whole dollar amount.
¡=
Required 3 Required 4
n =
$
Deposit
2,250
2,250
2,250
2,250
Fund Balance
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