Arish has $25,000 in an investment account and plans to contribute $1,000 at the start of each quarter into the fund for 15 years. If Arish wishes to have $200,000 at the 15th year, determine the rate of interest compounded quarterly needed to fulfill this requirement. Hint: Enter PV as $-25,000 O 8.07% O 5.35% O 9.49% O 8.50% O6.68%

Arish has $25,000 in an investment account and plans to contribute $1,000 at the start of each quarter into the fund for 15 years. If Arish wishes to have $200,000 at the 15th year, determine the rate of interest compounded quarterly needed to fulfill this requirement. Hint: Enter PV as $-25,000 O 8.07% O 5.35% O 9.49% O 8.50% O6.68%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Sd
Calculate the future value of end-of-month payments of $500 made for 4 years into an investment fund that earns 6.25% compounded quarterly. $27,768 38 (X) Round to the nearest cent
If $90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of $23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?
What is the accumulated value of periodic deposits of $6,000 made into an investment fund at the beginning of every quarter, for 6 years, if the interest rate is 2.50% compounded quarterly? Round to the nearest cent
A business sets up a sinking fund so they will have a $68,000.00 to pay for a replacement piece of equipment in 12 years when the current equipment will be sold for scrap. If they make deposits at the end of each quarter for 12 years in the investment that pays 6.3% compounded quarterly, what size should each payment be? Answer: The quarterly payments are $. (Round to the nearest cent/penny)
37) You receive a perpetual cash flow of $500 every year from the University at Albany at a rate of 8%. What is the value of this investment? a) Ad infinitum b) $40,125.00 c) $1,000.37 d) $6,250.00 e) $500.00 38) An interest rate is quoted at 10%, compounded semi-annually (six months). You have $110.25 at the end of the period for an interest rate of 10.25%. What is the 10.25% interest rate called? a) Stated interest rate. b) Annual Percentage Rate (APR) c) Effective Annual Rate d) An Interest only loan e) Simple interest For Questions 39-41, please use the following example: Bank of America wants to issue a $1,000,000 bond. The rate on debt issued by comparable company Citigroup is 12%. Thus, Bank of America will pay 12% per year in interest on monies borrowed for 30 years. Bank of America repays the principal at the end of year 30. 39) What is Bank of America's coupon payment? a) $1,000,000 b) 12% c) 30 years d) $120,000 e) Not able to calculate 40) What is the par value of Bank of…
2. Northern Flying Science is preparing to buy an aircraft estimated to cost $600,000 by making equal payments at the end of every three months into a sinking fund for five years. Interest earned by the fund is 8% compounded quarterly. a. What is the size of the quarterly payment made to the sinking fund? b. How much of the maturity value of the fund will be interest? c. What is the accumulated value of the fund after two years? d. How much interest will the fund earn in the 15th payment interval? Using BA II Plus Calculator
Calculate the future value of end-of-month payments of $4,000 made for 7 years into an investment fund that earns 5.50% compounded quarterly.
A sinking fund is generated for the recovery of bond of $1000000 at the end of 25 years. How much money should be given out of profit each year for the sinking fund, if the investment could earn interest of 4% per annum..?
Bright Inc. will be receiving $5,500 at the end of every month for the next 3 years. If these payments were directly invested into a fund earning 6.00% compounded semi- annually, what would be the future value of the fund at the end of 3 years? $0.00 Round to the nearest cent
pm he company alfa & omega, s.a. You want to accumulate $1,000,000 in a sinking fund at the end of 7 years. What deposit made at the end of each two-month period is necessary if the fund pays 15.3781% compounded semiannually?
Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Required initial investment %24