A company plans to make four annual deposits of $3,500 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. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD 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 $3,500 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $3,500 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $3,500 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $3,500 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deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. Answer is not complete. Complete this question by entering your answers in the tabs below. Required. 3 Required 4 The $3,500 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deposits are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. Required 1 Required 2 Deposit Number of Amount Payments 3,500 Interest left in Fund 4254 Fund Balance
A company plans to make four annual deposits of $3,500 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. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD 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 $3,500 annual deposit are made at the end of each of the four years and interest is compounded annually. 2. The $3,500 annual deposit are made at the beginning of each of the four years and interest is compounded annually. 3. The $3,500 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly. 4. The $3,500 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deposit are made at the beginning of each of the four years interest is compounded annually, and interest earned is withdrawn at the end of each year. Answer is not complete. Complete this question by entering your answers in the tabs below. Required. 3 Required 4 The $3,500 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. Required 1 Required 2 Deposit Number of Amount Payments 3,500 Interest left in Fund 4254 Fund Balance
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
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