(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 summerplace 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 decimalplaces, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)Annual depositeTextbook and MediaSave for LaterAttempts: unlimitedSubmit Answer%24

It can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv], [type]) Rate The…

Answered: (b) Chris Hitchcock is 43 years old…

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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Similar questions

Instead of investing the entire $1.068,000, Bogut invests $290,700 today and plans to make 9 equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $2,134,932 foundation at the end of 9 years? (Round factor values to 5 decimal places, eg 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Payments
Click here to view the factor table. https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
What sum of money must be deposited in a trust fund to provide a scholarship of $1550, quarterly for infinite period, if interest is 7.2% compounded quarterly? (Money should be rounded to 2 decimal place) USE ONLY CALCULATOR TO CALCULATE YOUR ANSWERS. PMT VY CAY 1 PV 1550 0.072 4 0.018 86111.11 4
Mark Harris borrowed some money from his friend and promised to repay him $1,250, $1,340, $1,490, $1,560, and $1,560 over the next five years. If the friend normally discounts investment cash flows at 8.0 percent annually, how much did Mark borrow? (Round answer to 2 decimal places)
Solve by using the sinking fund or amortization formula. Betty Price purchased a new home for $245,000 with a 10% down payment and the remainder amortized over a 15 year period at 9% interest. (a) What amount (in $) did Betty finance? $ (b) What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.) $ (c) What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.) $
Assume that Karen Williams desires to accumulate $1,000,000 in 15 years using her money market fund balance of $209,004. At what interest rate must Karen’s investment compound annually? (Round answer to 0 decimal places, e.g. 5%.) Interest rate %
Question 1 What is the amount of the payments that Dwight Schrute must make at the end of each of 8 years to accumulate a fund of $86,200 by the end of the 8th year, if the fund earns 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.) Dwight's payment at the end of each year must be ?
Yarianny wants to withdraw $25199 annually starting today for the next 20 years and will increase the withdrawals by 3.5% each year. If the annuity can earn 6% compounded semi-annually, how much money needs to be invested in the fund today? Select the closest answer choice. Select one: Oa. $402571.57 Ob. $427770.57 O c. $478168.57 d. $452969.57 Check
8. Deposits of 1000 are placed into a fund at the end of each year for the next 25 years for the subsequent purchase of a perpetuity. Five years after the last deposit, annual payments commence and continue forever. If i = .09 then find the amount of each payment.
Joseph Bogut just received a signing bonus of $1,078,000. His plan is to invest this payment in a fund that will earn 8%, compounded annually.
David Quincy wants to withdraw $30,800 each year for 10 years from a fund that earns 10% interest. Click here to view factor tables. How much must he invest today if the first withdrawal is at year-end? How much must he invest today if the first withdrawal takes place immediately? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) First withdrawal at year-end First withdrawal immediately
2. math of interest. please solve correctly

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