An aunty deposits $10,000 into an account earning 2% p.a. pounded quarterly. She wants a total of 20 regular quarterly pay- ments to be made out of the account and into her niece's account at the beginning of each quarter. com- (a) If the first payment is made now then what is the value of the regular payment? Give your answer rounded to the nearest cent. (b) If the first payment is made in two year's time then what is the value of the regular payment? Give your answer rounded to the nearest cent. (c) How many quarters should the payments be deferred to achieve a regular payment of $550 per quarter? Round your answer up to nearest whole quarter.

An aunty deposits $10,000 into an account earning 2% p.a. pounded quarterly. She wants a total of 20 regular quarterly pay- ments to be made out of the account and into her niece's account at the beginning of each quarter. com- (a) If the first payment is made now then what is the value of the regular payment? Give your answer rounded to the nearest cent. (b) If the first payment is made in two year's time then what is the value of the regular payment? Give your answer rounded to the nearest cent. (c) How many quarters should the payments be deferred to achieve a regular payment of $550 per quarter? Round your answer up to nearest whole quarter.

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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4) Megan invests $2,000 at the end of each year into an account earning 3% effective annual interest. She reinvests the interest earned at the end of each year into a second account that will earn her 7% effective annual interest. How much is in the second account after 35 years? Also, fill in the following table (or, redraw the table on your solution sheet being handed in and fill it in). Year Amount in 1st account Amount deposited into 2nd account 0 1 2 3 : : 34 35
Trying to find the max possible withdrawal it says to round to nearest cent.. please help
Kelly Malone plans to have $40 withheld from her monthly paycheck and deposited in a savings account that earns 12% annually, compounded monthly. If Malone continues with her plan for two and one-half years, how much will be accumulated in the account on the date of the last deposit? (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to 2 decimal places. Round "Table Factor" to 4 decimal places.) Periodic Cash Flow $ Table Values are Based on: 40 n = Table Factor Total Accumulation
a
Jason's loan for $8500.00 is repaid by equal payments of $525.00 that are made at the end of every month. If his interest is 11% compounded semi-annually, how much will be paid out of pocket (in total) to repay the loan plus interest?
A couple is planning to finance its three-year-old son's university education. Money can be deposited at 9% compounded quarterly. What quarterly deposit must be made from the son's 3rd birthday to his 18th birthday to provide $10000 on each birthday from the 18th to the 21st? (Note that the first deposit is made three months after the 3rd birthday and the last deposit is made on the date of the first withdrawal.) (keep 2 decimal places) Answer:
A couple who borrow $100,000 for 30 years at 8.4%, compounded monthly, must make monthly payments of $761.84. (Round your answers to the nearest cent.) (a) Find their unpaid balance after 1 year. (b) During that first year, how much interest do they pay?
Subject: accounting
Susan Carver will purchase a home for $280,000. She will use a down payment of 18% and finance the remaining portion at 5.7%, compounded monthly for 30 years. Complete parts (a) through (c) below. (a) What will be the monthly payment? Susan will pay $______ each month. (Round to the nearest cent as needed.) (b) How much will remain on the loan after making payment for 12 year. The amount remaining on the loan will be $______ (c) How much interest will be paid on the total amount of the loan over the course of 30 years? The amount of interest that will be paid is $____ (Round to the nearest cent as needed.)
Give typing answer with explanation and conclusion What regular interest payment will grandmamma receive from a seven-year, $1,750,000 monthly payment GIC earning a nominal rate of 5.4% compounded monthly?
Lea buys a sala set. She pays P2, 500 down payment and pays P1, 200 per month for 2 years. If interest is charged at 6% compounded monthly, what is the cash equivalent of the sala set?
Odysseus buys an Odyssey for $45,000.00. He pays $5000.00 down and the remainder in equal monthly payments over 5 years at 8% c.m. a. Calculate the amount of the monthly payment. b. Calculate the total interest charges. c. Determine the balance owing just after the 36th payment. Show the Merchant's Rule. d. Determine the total principal paid during the third year.

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