A fund to replace a deterioratingmachine will be formed by depositing$2000 at the beginning of each 6months for 7 years. If the fundaccomulates at 7% compoundedsemi annually; how much is in it (a) atthe end of 7 years (b) just after the8th deposit; (c) just after the lastdeposit

Semiannual deposit (C) = $2000 Semiannual interest rate (r) = 0.035 (i.e. 0.07 / 2) a. Semiannual…

Answered: A fund to replace a deteriorating…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 23E

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If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?
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A fund to replace a deteriorating machine will be formed by depositing $2000 at the beginning of each 6 months for 7 years. If the fund accomulates at 7% compounded semi annually; how much is in it (a) at the end of 7 years (b) just after the 8th deposit; (c) just after the last deposit