Anne wants to accumulate $25,000 by December 31, 2019. To accumulate that sum, she will make twelve equal quarterly deposits of $1,616.66 at the end of March, June, September, and December, beginning on March 31, 2016, into a fund that earns interest compounded quarterly. What annual rate of interest must the fund provide to yield the desired sum? 4.5% 26% 6.5% 18%

Q: A person plans to make equal monthly deposits into this account for 20 years at the rate of 6%…

A: Present Value of annuity refers to the value of regular cash flows or payments at equal intervals at…

Q: Current Attempt in Progress Sharon is 40 years old today and she wishes to accumulate $2,360,000 by…

A: It is given that,  Sharon want to accumualte $ 2,360,000 by her 65th Birthday. Therefore, Future…

Q: ind the amount needed to deposit into an account today that will yield a typical pension payment of…

A: Annual payment  (P) = $15000 Period (n) = 28 Years Interest rate (r) = 4.9%

Q: Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from…

A: Working note for calculations. Note for Converting Quarter into years:- Number of year to deplete =…

Q: Candice Alvarez is investing $385,400 in a fund that earns 11% interest compounded annually. Click…

A: Yearly withdrawals refer to the amount that can be withdrawn from the annuity investment made for…

Q: An insurance settlement of $1.5 million must replace Trixie Eden's income for the next 35 years.…

A: Present value (PV) = $1,500,000 Interest rate = 7.5% Monthly interest rate (r) = 7.5%/12 = 0.625%…

Q: Ricky Fowler borrowed $70,000 on March 1, 2018. This amount plus accrued interest at 6% compounded…

A: Present Value: The value of today’s amount to be paid or received in the future at a compound…

Q: Willie deposits a fixed monthly amount into an annuity account for his child’s college fund. He…

A: Here, to calculate the monthly contribution we have to use the formula of future value of annuity.…

Q: today

A: Formula to calculate FV of annuity: If payment done at the beginning of the year: FV =…

Q: John Rider wants to accumulate $100,000 to be used for his daughter’s college education. He would…

A: 1.Calculate the amount John invested on December 31, 2016:

Q: Drake is planning to invest $570 in a mutual fund at the end of each of the next eight years. If his…

A: Annual investment (C) = $570Interest rate (r) = 0.06Period (n) = 8 yearsFuture value = ?Future value…

Q: Kelly Malone plans to have $55 withheld from her monthly paycheck and deposited in a savings account…

A: Monthly payment=$55Interest rate=12%Compounding monthlyMonthly rate=r=12/12=1%Period=1.5 yearsn=1.5…

Q: per year and the cash value is expected to be $1.5 million at retirement. Approximately how many…

A: The given problem can be solved using NPER function in excel. NPER function computes no. of years/…

Q: How much money should Prisha invest today in a fund that earns interest at 4.02% compounded…

A: Here, Semi Annual Payment (PMT) is $7,750 Interest Rate (r) is 4.02% Compounding Period (m) is…

Q: Our clients saved $2,500,000 for retirement.  They wish to withdraw $20,000 from the fund each month…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Lauren deposits: • $240 at the beginning of year 1; $220 at the beginning of year 2; • $100 at the…

A: We have a series of cash flows that needs to be accumulated till 3 years after the last investment.…

Q: An insurer needs to make the following annuity payments to an individual: £445 paid at the end of…

A: To calculate the present value of the annuity payments, we need to discount each payment back to the…

Q: Kelly Malone plans to have $53 withheld from her monthly paycheck and deposited in a savings account…

A:

Q: Brenda plans to reduce her spending by $90 a month. Calculate the future value of this increase in…

A: The future value of money pertains to the worth of a sum of money at a later point in time,…

Q: Tara wishes to accumulate $29,000 in 5 years. Use the appropriate formula to find the sinking fund…

A: Given information, Target amount of total accumulation (A) = $29,000Time (t) = 5 yearsPayment and…

Q: Newman Quincy wants to withdraw $32,700 each year for 14 years from a fund that earns 10% interest.…

A: 1. How much must he invest today if the first withdrawal is at year-end?  Year Cash flows pvf @…

Q: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18…

A: Given  P=$37,000 r= 7.8% n=1 t=18 years

Q: James deposits $266.40 each month into an annuity account for his child's college fund in order to…

A: Interest earned refers to an amount accumulated as earnings over the investment value of the banks…

Q: How much money should Abigail invest today into a fund that earns interest at 3.75% compounded…

A: Since interest rate is compounded quaterly and payment of annuity is made semi annually, we need to…

Q: On January 1, 2021, you deposited $5,500 in a savings account. The account will earn 10 percent…

A: In many financial computations, such as investment analysis, retirement planning, and assessing the…

Q: The annual effective interest rate is 6%. Determine X.

A: To determine the value of X, we need to calculate the future value of the monthly deposits made by…

Q: Angela invested $10, 500 into a fund earning 7.75% compounded monthly. She plans to withdraw $850…

A: Dear student, kindly check the answer in the explanation box below.Explanation:Part 1: Answer:To…

Q: Janet Lopez wishes to establish a trust fund from which her son can withdraw $15,000 every six…

A: The objective of the question is to find out the initial amount that Janet needs to deposit in the…

Q: How much does your client need to contribute to a fund each month for the next 25 years (first…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: Assuming that you have contributed to your TFSA account, the maximum amount from 2014 to 2022 (all…

A: We can determine the FV of each deposit using the formula below:Where n = year in which the cash…

Q: What should be the balance in a Registered Retirement Income Fund (RRIF) that will provide $3,000 at…

A: PV is the present value of the annuity,PMT is the payment made at each period (in this case,…

Q: Coronado Corporation will invest $30500 every January 1 for the next six years (2025-2030). If…

A: Future value is the amount of money an investment will be worth at a specific future date, based on…

Q: P25,000 on top of his regular annual deposit. HoW much money can he withdraw from the fund ten years…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: Mia will retire 10 years from now and wants to establish a fund today that will pay $30,000 cash at…

A: We will first calculate the value of the annuity at January 1, year 11 and then discount it for a…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.