A. Ken deposits P100,000 today and another P 200,000 in five years into a fund that pays simple discount at 5% p.a. Ian makes the same deposits into another fund that credits interest at 10% effective per year, but at time n and 2n, respectively. At the end of 10 years, the accumulated value of Ken's deposits is exactly the same as the accumulated value of Ian's deposits. Calculate n.

A. Ken deposits P100,000 today and another P 200,000 in five years into a fund that pays simple discount at 5% p.a. Ian makes the same deposits into another fund that credits interest at 10% effective per year, but at time n and 2n, respectively. At the end of 10 years, the accumulated value of Ken's deposits is exactly the same as the accumulated value of Ian's deposits. Calculate n.

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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Mr. Deneau accumulated $97,000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $1500 at the end of every month from the fund. If interest is 3.95% compounded quarterly, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months). He can make withdrawals for year(s) and month(s).
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Dylan contributed $700 at the end of every 3 months, for 4 years, into a Registered Retirement Savings Plan (RRSP) earning 3.50% compounded quarterly. a. What is the future value of the fund at the end of 4 years? $0.00 Round to the nearest cent b. What is the amount of interest earned over the 4-year period? $0.00 Round to the nearest cent
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On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2018 and in 2019? Show Transcribed Text
(b) Chris Hitchcock is 43 years old today and he wishes to accumulate $512.000 by his 65 th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 43 th through his 64 th birthdays. What annual deposit must Chris make if the fund will earn 8% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Annual deposit eTextbook and Media Save for Later Attempts: unlimited Submit Answer %24
Jeff deposits 10 into a fund today and 20 fifteen years later. Interest for the firstten years is credited at a nominal discount rate of d compounded quarterly, and thereafterat a nominal interest rate of 6% compounded semiannually. The accumulated balance in thefund at the end of 30 years is 100. Calculate d.
Lucy won a large sum in the lottery. She invested part of her winnings into a fund earning 7.95% compounded monthly. She has arranged a systematic withdrawal plan that provides for 120 monthly payments increasing at a constant rate of 0.9% per payment. The first payment of $850 is due one month after she set up the fund. How much interest is included in the payments?
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