A young engineer creates an educational plan for his new born niece by depositing 1,000.00 every end of the month in a fund that pays a rate of 9% compounded monthly. How much lump sum could he withdraw from the fund when she enters college at the age of 17?

Q: Leon and Heidi decided to invest $32500 annually for only the first nine years of their marriage.…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: a perpetuity has a price of $750 and an annual interest payment of $35,

A:

Q: 10,000 per year – at

A:

Q: b) $4,500 at the end of each year for 15 years at 4.75% compounded annually.

A: The amount invested each year = $4500 Total number of years = 15 years The interest rate earned in…

Q: If you borrow $500 at an interest rate of 4% per year for two years, how much interest will you have…

A: The concept of simple interest involves the calculation of interest on a fixed principal amount over…

Q: A bond with a face value of $10,000 pays interest of 8​% per year. This bond will be redeemed at its…

A: Price of bond = $6149 rounded offExplanation:Price of bond = PV of coupon Payments + PV of…

Q: A project's annual revenue will be $50,000 the first year and will decrease by $1500 per year over…

A: Given a specific return rate, the present value of an investment is its future cash flow value…

Q: 1. An investment company advertises accounts that actually yields 13% interest per year when…

A: Given the information: Actual interest rate = 13% Use the below formula: Nominal interest rate = m ×…

Q: An investor (owner) has an option to purchase a tract of land that will be worth $20,000 in ten…

A: Compound interest rate is one of the methods of calculating interest rate. It calculates the…

Q: Karen loaned P10,000 from a firm with a simple interest of 20%. The interest was deducted right away…

A: Karen borrowed an amount of P10,000 at simple interest rate 20% and interest was deducted before…

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: A bond pays a semiannual coupon, and the last coupon was paid 61 days ago. If the annual coupon…

A: The annual coupon payment = $75 The last coupon paid = 61 days ago Accrued interest =?

Q: How much should be put in an investment with a 10% effective annual rate today to have $10000 in…

A: The effective annual rate = 10% Future value of an investment = 10000 dollars Time period = 5 years

Q: Carissa's parents were unable to pay for her last year of college, so she obtained a student loan of…

A: Compound interest is the interest forced on a loan or deposit amount. It is the most commonly…

Q: A company that manufactures air-operated drain valve assemblies currently has $85,000 available to…

A: Present value =$85000Number of periods =5Expenditure on the first year is $42000Let the company…