A person deposits $2,000 in an account each year for five years (starting at the end of year one). At the end of the fifth year, one-half of the account balance is withdrawn; $4,000 is deposited annually for five more years (starting in the 6th year), with the total balance withdrawn at the end of the fifteenth year. There are no additional payments in years 11-15. a. Choose the correct cash flow diagram. b. If the account earns interest at the rate of 3% per year, how much is withdrawn at the end of five years? c. If the account continues to earn interest at the rate of 3% per year, how much is withdrawn at the end of 15 years? Click the icon to view the interest and annuity table for discrete compounding when i = 3% per year. O C. F5/2 2 3 45 2K 2K 2K 2K 2K 4K 4K 4K 4K 4K 6 7 8 9 10 11 12 13 14 15 F6/2 3 4 56 2K 2K 2K 2K 2K F15 1 4K 4K 4K 4K 4K F15 7 8 9 10 11 12 13 14 15 Q Q Q O D. F5/5 3 45 2K 2K 2K 2K 2K 2K 2K 2K 2K 2K 6 7 8 9 10 11 12 13 14 15 4K 4K 4K 4K 4K 4K 4K 4K 4K 4K F15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 F5/2 F15 Q Q G

A person deposits $2,000 in an account each year for five years (starting at the end of year one). At the end of the fifth year, one-half of the account balance is withdrawn; $4,000 is deposited annually for five more years (starting in the 6th year), with the total balance withdrawn at the end of the fifteenth year. There are no additional payments in years 11-15. a. Choose the correct cash flow diagram. b. If the account earns interest at the rate of 3% per year, how much is withdrawn at the end of five years? c. If the account continues to earn interest at the rate of 3% per year, how much is withdrawn at the end of 15 years? Click the icon to view the interest and annuity table for discrete compounding when i = 3% per year. O C. F5/2 2 3 45 2K 2K 2K 2K 2K 4K 4K 4K 4K 4K 6 7 8 9 10 11 12 13 14 15 F6/2 3 4 56 2K 2K 2K 2K 2K F15 1 4K 4K 4K 4K 4K F15 7 8 9 10 11 12 13 14 15 Q Q Q O D. F5/5 3 45 2K 2K 2K 2K 2K 2K 2K 2K 2K 2K 6 7 8 9 10 11 12 13 14 15 4K 4K 4K 4K 4K 4K 4K 4K 4K 4K F15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 F5/2 F15 Q Q G

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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You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to withdraw $108 in the sixth month and increase your withdrawals by $15 over the previous month's withdrawal. How much should you deposit now in a bank account that pays 12% per year compounded monthly? Enter the answer with two decimal places. Do not enter the dollar
Subject: accounting
Ee 452.
Derek will deposit $1,696.00 per year into an account starting today and ending in year 17.00. The account that earns 6.00%. How much will be in the account 17.0 years from today? Submit Answer format: Currency: Round to: 2 decimal places.
Beginning three months from now, you want to be able to withdraw $2,700 each quarter from your bank account to cover college expenses over the next three years. If the account pays .49 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next three years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) present value=?
You just deposited $6,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now? Select the correct answer. a. 26,058.29 b. 26,040.89 c. 26,006.09 d. 26,023.49 e. 26,075.69
17. You deposit $8,000 in a bank account today. You make another deposit of $14,000 into the account in year one and you make a third deposit of $10,000 in year two. The bank pays interest at 8 percent compounded annually. How much will you have in your account at the end of year 3? * O a) $37,207 b) $35,207 O c) $39,207 O d) $40,502 e) None of the above
am. 31.
Troy will receive $8678 at the end of Year 2. At the end of the following two years, he will receive $8260 and $2665, respectively. What is the future value of these cash flows at the end of Year 6 if the interest rate is 4 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Determine Hopewell's cash conversion cycle. Assume that there are 365 days per year. Do not round intermediate calculations. Round your answer to one decimal place. days
Assume that you are looking at three perpetuities. Perpetuity 1 (P₁) has annual cash flows of $850 in Years 1 through infinity (1-x) and a present value at Year 0 of $10.119.047619. Perpetuity 2 (P₂) has annual cash flows of $620 in Years 11 through infinity (11 - oo) and the same effective rate as Perpetuity 1. Perpetuity 3 (P3) has annual cash flows of $780 in Years 25 though infinity (25 - 0) and the same effective rate as Perpetuities 1 and 2. Given this information, determine the value of all three perpetuities when evaluated at Year 35. $239.599.69 O $248,272.58 $245,381.62 O$242,490.65 O $254,054.51
You currently have $50,000 in a bank account that pays interest at 6% p.a. compounding monthly. You wish to withdraw an equal amount at the beginning of each month from this account, starting immediately, for the next 5 years. The most these monthly withdrawals can be is: A.$833.33 B.$961.83 C.$966.64 D.$1124.04 E.None of the above

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