Answered: Blake contributed $658 at the end of…

Blake contributed $658 at the end of every 3 months into an RRSP fund earning 2.3% compounded quarterly for 9 years. What is the amount of interest earned over this period? Round to the nearest cent

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

See similar textbooks

Related questions

Q: In order to accumulate $1,000,000 after 35 years, calculate the amounts that must be invested at the…

A: Computation:

Q: Patrick deposited $3200 at 8% interest compounded quarterly. Find the amount in his account at the…

A: The value of a current asset at a future date based on an expected rate of growth is known as future…

Q: Arish has $25,000 in an investment account and plans to contribute $1,000 at the start of each…

A: Rate of interest The cost associated with borrowing money. Over time, it is given as a percentage…

Q: A person invests $50,000 in an investment that earns 6 percent. If $6,340 is withdrawn each year,…

A: Given: Present value = $50,000 Interest rate = 6% Amount = $6,340

Q: McKinnon's Machinery sets aside $4000.00 at the beginning of every six months in a fund to replace…

A: Given, $4000 is made at the beginning of every six months. Rate is 8% compounded monthly

Q: Sue has contributed $2,843.00 every three months for the last 11 years into an RRSP fund. The…

A: Future value of the money include the amount being deposited and amount of compounding interest…

Q: Bright Inc. will be receiving $5,300 at the end of every month for the next 3 years. If these…

A: The objective of the question is to calculate the future value of a series of monthly payments…

Q: Rebecca made equal deposits at the beginning of every 3 months into an RRSP. At the end of 10 years,…

A: The size of quarterly deposits can refer to the amount of money that a business needs to deposit…

Q: Laura deposited $700 at the end of every month into an RRSP for 7 years. The interest rate earned…

A: Compound interest is a financial concept in which the interest generated on an initial sum of money,…

Q: You invested $7,000 at the end of each quarter for 8 years in an investment fund. If t balance in…

A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…

Q: el started to deposit P5,000 quarterly in a fund that pays 1% compounded quarterly. How much will be…

A: The money grow with time and depending on the interest rate and compounding the future value grow…

Q: 6

A: Financial investment property placing the money in hopes that they will grow or inform about the…

Q: Blake contributed $690 at the end of every 3 months into an RRSP fund earning 2.98% compounded…

A: Annuity = $690Period = 7 yearsNumber of Payments per year = 3/12 = 4Interest rate = 2.98% per annum

Q: Juan invested an amount of $16,000.00 in a mutual fund. After 3 years and 6 months the accumulated…

A: Invested Amount $ 16,000.00 Future Value $…

Q: Deposits of $6000 are put into a fund at the end of each month for the next 9 years. At the end of…

A: The perpetuity refers to the regular payment of receipt for an infinite period of time at a certain…

Q: onthly. After this period, the accumulated money was left in the account for another 5.5 yea e same…

A: Future value of deposit includes the amount being deposited and amount of compounding interest…

Q: Mr. Merkel has contributed $124.00 at the end of each six months into an RRSP paying 3% per annum…

A: Compound = semiannually = 4Payment = p = $124Time = t = 12 x 4 = 48Interest rate = r = 3% = =…

Q: The future value is $. (Round to the nearest cent as needed.) The compound interest is $. (Round to…

A: We can determine the FV using the formula below:In the formula above q = compounding frequency =…

Q: If $100 is deposited in a fund at the beginning of each 3 months for 8 years and the money is…

A: Quarterly deposit (C) = $100 Quarterly interest rate (r) = 0.0125 (i.e. 0.05 / 4) a. Number of…

Q: Mark deposit $1,000,000 in a fund today, the conditions for payment to Mark are a fixed amount for…

A: using excel Goal seek to find out the fixed amount

Q: Eric Coleman invested $2500 four times a year in an annuity due at Southern Trust Company for a…

A: The Future Value of Annuity Due is the total future value of each cash flow which is made at the…

Q: Two payments of $12,000 and $3,500 are due in 1 year and 2 years, respectively. Calculate the two…

A: 1.The size of the two equal payments is $8,629.28 2.t = 3.62 years 3.r = 8.76%Explanation:Step…

Q: Sue has contributed $2,843.00 every three months for the last 11 years into an RRSP fund. The…

Q: Sarah deposited $26,500 into a fund at the beginning of every quarter for 16 years. He then stopped…

A: Compound interest= p*(1+r%/n)^tn A.) Around $358903 stacked up at the end of 16th year.

Q: Calculate the accumulated amount of end-of-quarter payments of $8,500 made for 7 years into an…

A: Accumulated amount refers to the value of the current asset at some future date after the regular…

Q: Equal deposits are made into a sinking fund at the end of each year for seven years. Interest is…

A: A sinking fund is a fund set up to pay off future debt. A fixed amount is put in at regular…

Q: Sean's investment of $81,400.00 in a fund matured to $155,777.80 in 8 years. If the interest in the…

A: The periodic interest rate refers to the return that the investment provides for each period. The…

Q: Lindsey made equal deposits at the beginning of every 3 months into an RRSP. At the end of 9 years,…

A: Compound = Quarterly = 4Time = t = 9 * 4 = 36Future Value = fv = $50,000Monthly Compound Interest…

Q: klp.1

A: The objective of the question is to determine the duration for which Mr. Deneau can make withdrawals…

Q: Eight equal deposits of $1,000 are made at the end of each year into a fund paying 8%. a. What is…

Q: Contributions of $146.30 are made at the beginning of every three months into an RRSP for 17 years.…

A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth…

Q: Vincent deposited $1,300 at the end of every month into an RRSP for 9 years. The interest rate…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: 124 0.4950495 0.4926108 0.4901961 0.4854369 0.4807692 0221 0.3267547 0.3235304 0.3203485 0.3141098…

A: We have to find out future value FACTOR of annuity and find out quarterly payment.

Q: Find the amount of each payment to be made into a sinking fund earning 9% compounded monthly to…

A: Data given: A=Amount to be accumulated = $86,000 P= Payment to be made = ? i=interest rate…

Q: Determine the amount that must be deposited every 3 months a fund paying 12% compounded quarterly in…

A: Computation of the amount that must be deposited in order to have P25000in 8 years having 12%…

Q: Conners' Equipment established a sinking fund to accumulate $250,000 by making payments at the…

A: As per the given question, Conners Equipment accumulated $250,000 at the beginning of the year.…

Q: Alp Bilgin deposits $33.000 in asaving account that pays 9%interest compounded monthly.Four years…

A: The objective of the question is to find out the total amount in the account eight years after the…

Q: Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to…

A: Future value (FV) = $39,000 Interest rate = 7% Monthly interest rate (r) = 7%/12 =…

Q: withdrawal is to be made 5 years from now, how long will it take for the fund to be depleted?

A: Future Value: It represents the compounded amount of the present sum invested over a period of…

Q: Your company has decided to set up a fund for its employees with an initial payment of Rs 27,500…

A: a.Calculate the size of the fund as follows:

Q: Miguel contributed $300 at the end of every 3 months into an RRSP fund earning 2.84% compounded…

A: The RRSP stands for registered retirement saving plan. This scheme is created for employees and…

Q: A manufacturing firm sets aside P50,000 at the end of each year for 5 years in a sinking fund…

A: Annual deposit = P 50,000 Period = 5 Years Annual interest rate = 12%

Q: monthly. After this period, the accumulated money was left in the account for anothe same interest…

A: Introduction: Future Value refers to the investment value to be received at a constant growth rate.…

Question

Blake contributed $658 at the end of every 3 months into an RRSP
fund earning 2.3% compounded quarterly for 9 years.
What is the amount of interest earned over this period?
Round to the nearest cent
Answer:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Explain ordinary annuity

VIEW

Step 2: Calculate future value of the fund

VIEW

Step 3: Calculate interest earned

VIEW

Solution

VIEW

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

1. Amy made semiannual deposits of $3,100 at the beginning of every every six months into a fund earning 6.8% compounded semiannually for nine years. No further deposits were made. a. How much will be in the account 15 years after the first deposit? _____________ b. How much in total was deposited? ______________ c. How much interest will Amy earn? _____________ 2. What is the principal invested at 4.75% compounded semiannually from which monthly withdrawals of $240 can be made at the beginning of each month for 15 years? _________________
Rose deposits P20,000 into a fund that earns 7.5% interest payable quarterly while Jack deposits at the same time P22,000 into a fund that earns a constant force of interest of r. After 2 years and 6 months, the value of their deposits are the same. Determine the constant force of interest rate r.( O 3.22% 3.32% O 3.42% 3.52% O 3.62%
Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the given conditions. (Round your answer to the nearest cent.) FV = $2,200,000, r = 4%, compounded quarterly for 35 years
Shane invested $11,000 in a fund earning 5.5% compounded monthly. He will withdraw $800 from the fund every quarter with the first withdrawal being made 4 years from now. What is the total time until the last withdrawal? |years months Express the answer in years and months, rounded to the next period
The Simpson Company invested $20000 in a fund that was earning interest at a rate of 5% compounded semi-annually. After 3 years and 9 months, the company transferred these funds to another investment that was earning interest at 5.5% compounded monthly, What is the balance in the fund at the end of 5 vears (from the initial investment)? Show your calculator entries in the table below with the first 3 years and 9 months on the left and the remainder of the time on the right. Save Ans N = N= I/Y = IY = PV = PV = PMT = PMT = FV = FV = PY = PY = C/Y = CY = The balance in the fund at the end of 5 years is $
At the end of every six months for 20 years, it gains value with an annual effective interest rate of 10%. Continuous payments are made to a fund as 500, 1000, 500, 1000, …, respectively. Calculate the amount accumulated in the fund at the end of twenty years?
A trust fund with a beginning balance of $24,000 earns interest at 5.0% compounded quarterly. If withdrawals of $3,300 are made at the beginning of every three months, starting 10 years from now, how long will the trust fund last? Round properly. Answer in quarters.
A sum of 50,000 deposited in a fund which will earn 12% compound semiannualy for the first 5 years and 8% interest compounded quarterly for the next 7 years. How much will be the amount after 12 years.
Five and a half years ago an individual invested $10000 in a retirement fund that grew at the rate of 6.82% per year compounded quarterly. What is the account worth today?
Margaret Hillman invested $7,000 at 1.8% compounded quarterly for one year. Find the future value and the interest earned for the year. The future value is $ (Round to the nearest cent as needed.)
Shawn Bowker invested $10,000 in a money market account that will pay 5.75 percent compounded quarterly. How much will the interest on interest be after three years? 143.13 $59.55 $68.63 $575 O $1,725.00
Mr. Kinders has contributed $189.00 at the end of each month into an RRSP paying 3% per annum compounded annually GILE How much will Mr. Kinders have in the RRSP after 12 years? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.). How much of the above amount is interest? (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed)

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS