Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year, compounded monthly, for 8 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. O $244.24 per month $281.72 per month $220.71 per month $286.72 per month

Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year, compounded monthly, for 8 years. (Assume end-of-period deposits and compounding at the same intervals as deposits.) Round your answer to the nearest cent. O $244.24 per month $281.72 per month $220.71 per month $286.72 per month

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Find the amount of each payment to be made into a sinking fund which earns 7% compounded quarterly…

A: Answer Future Value $32,000 Period In Years 2.5 Rate 7% Compund Quaterly Total Periods…

Q: the final payment? (Round your answer to the nearest cent.) Final payment $

A: The future value of the annuity, which comprises all payments plus any interest generated, must be…

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: uppose an individual makes an initial investment of $1,200 in an account that earns 6%, compounded…

A: We will apply the concept of time value of money here. As per the concept of time value of money the…

Q: A sinking fund is established to discharge a debt of $60,000 in 15 years. If deposits are made at…

A: using financial calculator, N =15*2 =30 I/Y = 4/2 =2 PV = 0 FV = -60000

Q: A sinking fund is established to discharge a debt of $70,000 in 15 years. If deposits are made at…

A: Compound = Semiannually = 2Future Value = fv = $70,000Time = t = 15 * 2 = 30Interest Rate = r = 4 /…

Q: Find the amount necessary to fund the given withdrawals. Semiannual withdrawals of $700 for 9 years;…

A: An annuity is a financial product or investment that provides a regular income stream for a fixed…

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: The payment size is $. (Round to the nearest cent.)

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: Find the amount necessary to fund the given withdrawals. 2) Quarterly withdrawals of $ 650 for 6…

A: Present value refers to the money present today having more worth than the money will receive in…

Q: An annuity purchased for $195,000 pays $6,000 at the end of every quarter. How long will the…

A: The term "annuity" refers to an insurance contract created and distributed by financial institutions…

Q: Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly…

A: End of period payments N = 3.5 years i.e. 14 quarters Interest rate = 8%/4 = 2% per quarter Future…

Q: A trust fund with a beginning balance of $24,000 earns interest at 5.0% compounded quarterly. If…

A: Trust funds are legal agreements that let people put money in a specific account for the benefit of…

Q: A college savings fund is opened with a $12,000 deposit. The account earns 6.55% annual interest…

A: Present value = pv = $12,000 Interest rate = r = 6.55% Time = t = 18 years

Q: A business must raise $70,000 in 7 years. What should be the size of the owners' quarterly payment…

A: FV = A × Where,FV = future value A = periodic payments r = interest rate n = time period.

Q: Your RRSP savings of $52,500 are converted to a RRIF at 4.22% compounded monthly that pays $5,372 at…

A: Time value of moneyThe concept that specifies the value of money today has more worth compared to…

Q: Find the amount of each payment to be made into a sinking fund which earns 8% compounded quarterly…

A: A sinking fund is a type of fund that sets aside a periodic sum in an account to repay a debt in the…

Question

Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,
compounded monthly, for 8 years. (Assume end-of-period deposits and compounding at the same
intervals as deposits.) Round your answer to the nearest cent.
$244.24 per month
$281.72 per month
$220.71 per month
$286.72 per month

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

FORMULA

VIEW

ANSWER

VIEW

Step by step

Solved in 2 steps with 2 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, accounting and related others by exploring similar questions and additional content below.

Similar questions

Dind the future value of $12,308 deposited at 10% compunded quarterly for 3 years. Round your answer to the nearest dollar
s
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.
Dobsen Door Manufacturer s sets up sinking fund to raise $75000 to pay off the maturity value of a three year note. If the sinking fund earns 3.8% compounded monthly how much should they set aside each month?
Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.)$ Amount Needed A Frequency n Rate r Time t $45,000 monthly 8% 35 yr
Subject :
Payments of $1,542 are made out of a fund of $20,000 at the end of every month. If interest is 4% compounded monthly, what is the size of the final The size of the final payment is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
An annuity with a cash value of $13,500 earns 5% compounded semi-annually. End-of-period semi-annual payments are deferred for six years, and then continue for nine years. How much is the amount of each payment? Give typing answer with explanation and conclusion
Nicole made equal deposits at the beginning of every 3 months into an RRSP. At the end of 8 years, the fund had an accumulated value of $40,000. If the RRSP was earning 3.75% compounded monthly, what was the size of the quarterly deposits? Round to the nearest cent
Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.)$ Amount Needed A Frequency n Rate r Time t $45,000 monthly 9% 20 yr
A student loan for $32,000 is paid back in monthly payments over ten years with an intrest rate of 6.5%. a) find the monthly payment b) find the total payments over 10 years
in order to have a fund of 1,000,000 at the end of 12 years, equal deposits every six months must be made. Find the semi annual payment of interest is at 6% compounded annually?