Commencing January 1 2022 Narelle plans to deposit $500 at the beginning of each month into aninvestment fund. The first deposit will be made on January 1 2022. Narelle predicts that the rate ofreturn on this fund will be j12=3.76% from 1 January 2022 to 30 June 2022 and 12-4.08% from 1 July2022 to 31 December 2022. If we assume these deposits are made at regular intervals, what will thebalance of this account be on 31 December 2022?a. 6126.45b. 6131.38c. 6111.42d. 6068.98

Here,MonthlyDeposit is $500Interest Rate for first six month is 3.76%Interest Rate for next six…

Answered: Commencing January 1 2022 Narelle plans…

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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Suppose you invest $2,500 in a fund earning 15% simple interest. Further suppose that you have the effective interest rasing this account and opening an account earning compound interest at an annual option at any time of 9%. At what instant should you do so in order to maximize your accumulation at the end of five years? (Round your answer to two decimal places.) 4.53 years How about if you wish to maximize the accumulation at the end of ten years? (Round your answer to two decimal places.) 4.53 years
How much do you need to deposit on April 1, 2019, so that you can make a series of monthly withdrawals of $500? The first withdrawal will be made on May 1, 2025, and the last is made on May 1, 2030. The interest rate is 10% compounded monthly.
In 5 years, you will start receiving monthly payments of $1000 from a trust fund that one of your great parents set up for you. The first payment will be made at the very end of year 5 and the payments will last for 34 years. You plan to deposit the money you receive every month into a special account right away that pays 6.60% APR with quarterly compounding. Today the account mentioned above has a balance of $14000. Assuming that interest rate will stay constant, what will be the account balance at the end of the 15th year?
Today is January 1, 2020. On the first day of the years 2021, 2022, 2023, and 2024, you will invest $12,000. If your expected rate of return is 7% per year, you will have ___________ on January 1, 2025 (rounded to the nearest dollar).
Volvo company want to invest a lump sum amount that will provide the company with $10,000 at the beginning of every month in perpetuity to help pay for its employees' monthly salaries. How much should be invested in a fund that provides an interest rate of 10% compounded quarterly?
Baxter desires to purchase an annuity on January 1, 2023, that yields him five annual cash flows of $11,000 each, with the first cash flow to be received on January 1, 2026. The interest rate is 10% compounded annually. The cost (present value) of the annuity on January 1, 2023, is ________. (Use spreadsheet software or a financial calculator to calculate your answer. Round intermediary calculations two decimal places and round your final answer to the nearest dollar.) Group of answer choices $55,000 $28,481 $45,869 $34,462
4) Ashley deposits $500 into an investment fund each January 1 starting in 2005 and continuing to 2014 inclusive. If the fund has an average annual growth rate of ji = 10%, how much will be in her account on January 1, 2019?
An investment you have will mature in 6 months and will give you $13,000 at that time if your initial deposit is $12,000. What is the nominal annual interest rate and what is the effective interest rate?
You want to save $8,000 by November 1, 2024. You plan to make annual deposits. The first deposit will be on November 1, 2019 and the last will be on November 1, 2024. If the account pays 6% annually, then what are the size of your annual deposits?
You are going to invest $1,500 today in a fund today. After 10 years, you want to have exactly $2,500 in the fund. If the interest rate is compounded annually, what interest rate is needed to achieve this?
You build a retirement fund by continuously paying into the fund for 30 years, at a rate of 5,000 per year at an effective annual interest rate of 9%. After 30 years, you buy a 30-year annuity immediate with your fund at an effective annual interest rate of 8%. The annuity pays P after one year, and payments increase by 5% thereafter. Find P
Currently, you have $10,000 in your retirement account. You deposit $20,000 at the end of each year in the same retirement portfolio for 40 years. You intend to retire 40 years from today. You intend to start receiving monthly payments over the next 30 years after you retire. The first payment would be received at the end of the first month after you retire. What will be your monthly pretax payments if the portfolio is expected to provide 10% annual rate of return? Assume the entire balance is exhausted at the end of the 30th year. O $340,406 O $148,237 O $167,379 O $81,653 O $73,710

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