A company plans to make four annual deposits of $7,000 each to a special building fund. The fund's assets will be i 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 Required: Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $7,000 annual deposit are made at the end of each of the four years and interest is compounded annually 2. The $7,000 annual deposit are made at the beginning of each of the four years and interest is compounded a 3. The $7,000 annual deposit are made at the beginning of each of the four years and interest is compounded q 4. The $7,000 annual deposit are made at the beginning of each of the four years interest is compounded annua earned is withdrawn at the end of each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Answer is complete but not entirely correct. Required 3 Required 4
A company plans to make four annual deposits of $7,000 each to a special building fund. The fund's assets will be i 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 Required: Determine how much will be accumulated in the fund after four years under each of the following situations: 1. The $7,000 annual deposit are made at the end of each of the four years and interest is compounded annually 2. The $7,000 annual deposit are made at the beginning of each of the four years and interest is compounded a 3. The $7,000 annual deposit are made at the beginning of each of the four years and interest is compounded q 4. The $7,000 annual deposit are made at the beginning of each of the four years interest is compounded annua earned is withdrawn at the end of each year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Answer is complete but not entirely correct. Required 3 Required 4
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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Question
Transcribed Image Text:A company plans to make four annual deposits of $7,000 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 $7,000 annual deposit are made at the end of each of the four years and interest is compounded annually.
2. The $7,000 annual deposit are made at the beginning of each of the four years and interest is compounded annually.
3. The $7,000 annual deposit are made at the beginning of each of the four years and interest is compounded quarterly.
4. The $7,000 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
First deposit
Second
deposit
Third deposit
Required 2
Fourth
deposit
The $7,000 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.
i=
Required 3
3%
3%
3%
3%
Answer is complete but not entirely correct.
n =
16
12
8✔
4
$
Deposit
Required 4
7,000
7,000
7,000
7,000
$
$
Fund Balance
11,233
9,981
7,879 X
8,373
37,466
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