Calculate the amount of money deposited into an account as a perpetuity if it is used for $2300 wilthdrawals to be made al the end of every quarter when moneyarms 4% p.a. compounding semi-annuallyCelect one:O a 117300O b. 115000O c 230000O d. 232300

The effective annual rate of interest is the actual or the real rate of interest paid or received…

Answered: aloulate the amount of money deposited…

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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What is the principle invested at %4.75 compounded semi annually from which monthly withdrawals of $420 can be made a. At the end of each month for 25 years b. At the beginning of each month for 15 years c. At the beginning of each month for 15 years but deferred for 12 years d. At end of each month in perpetuity e. At beginning of each month in perpetuity
Find the amount due on P200,000 in 4 years and 3 months at 4 1/4% compounded semi-annually 5 1/2% compounded quarterly 6% compounded annually 7% simple interest
Find the compound amount for the deposit. Round to the nearest cent. $1800 at 7% compounded quarterly for 4 years
AP 72,056 debt is to be paid off in eight equal quarterly payments at 7% compounded quarterly. What should be the amount of each payment?
Certain Concrete Company deposits $2,000 at the end of each quarter into an account paying 11% interest compounded quarterly. What is the value of the account at the end of 7 1/2 1 2 years? (a) State the type. A. present valueB. ordinary annuity C. sinking fund D. amortization E. none of these (b) Answer the question. (Round your answer to the nearest cent.)
17. P100,000 was placed in a time deposit which earned 9% compounded quarterly tax free. After how many years would it be able to earn a total interest of P50,000? c. 3.45 years a. 4.56 years b. 4.23 years d. 3.64 years
A deposit of $50,000 is made into an account that pays 10% compounded semiannually. How much would be in the account after 10 years? (a) $81,445 (b) $129,685 (c) $132,665 (d) $336,375
3. Find the amount of PS000 ordinary annuty payable quarIony for s years. Money is worst 4. Consider the given annulties: A: P1 000 deposited at the beginning of each month for 3 years at 12% compounded semi-annually. B: P 3 000 deposíted at the beginning of each querter for 3 years at 12% compounded quarterly. Calculate the amount of each annulty. Compare the two annuities. 5. A mortgage of P 80 000 is to be paid by annual payment over a period of 10 years. If the interest rate is 15.8% effective. a) Calculate the annual payment; b) Construct an amortization achedule; c) Find the total payment made; d) Find the total interest paid 6. A project requires an initial outlay of P 100 000. The relevant inflows associated with the project are P 60 000 in year one andP 50 000 in years two and three. The appropriate discount rate for this project is 11%. Compute the net present vafue. Should the company accept the project?
Find the Present value of perpetuity of OMR 560 made at the beginning of each month if the interest is 13.5% compounded monthly Select one: a. OMR 60337.78 b. OMR 50237.78 c. OMR 50337.78 d. OMR 50347.78
compounding time frequency in years annually $225,000 3.9% semiannually $275,000 4.9% Future Value $125,000 2% r $200,000 5.7% $250,000 3.7% quarterly monthly weekly 11 $ 10 12 6 9 $ periodic deposit (m) S ज S S interest earned
Assume Sheffield Corp. deposits $81000 with First National Bank in an account earning interest at 4% per annum, compounded semi-annually. How much will Sheffield have in the account after 4 years if interest is reinvested? O $94904. O $81000. O $93960. O $94760.
What single payment made immediately will settle the 7,700 due in 7 years which is 3% compounded quarterly? Choices: a. 16617 b. 17617 c. 17671 d. 16671 please provide solution

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aloulate the amount of money deposited into an account as a perpetuity if it is used for $2300 withdrawals to be made al the end of every quarter when maney arms 4% p.a. compounding semi-annualy elect one a 117300 Ob. 115000 Oc 230000 Od. 232300