How much must be deposited at the end of each month for 7.75 years to accumulate to $1264.00 at 7% compounded monthly?The required deposit is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The given problem can be solved using PMT function in excel. PMT function computes savings/…

How much must be deposited at the end of each month for 7.75 years to accumulate to $1264.00 at 7% compounded monthly? The required deposit is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

How much must be deposited at the end of each month for 7.75 years to accumulate to $1264.00 at 7% compounded monthly? The required deposit is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

See similar textbooks

Related questions

Q: 7 is invested at the end of each 6 months for 6 equal payments at 0.27 compounded semi - annually.…

A: Given information : Periodic investment $ 1,287.00 Interest rate 27% Total installments 6…

Q: Find the interest rate for a $8500 deposit accumulating to $11,612, compounded annually for 6 years.…

A: A = the final amount (in this case, $11,612) P = the principal (initial deposit) (in this case,…

Q: How much must be deposited at the end of each month for 9.5 years to accumulate to $3866.00 at 10%…

A: Accumulated value = $3866 Monthly interest rate (r) = 0.00833333333333333 (i.e. 0.10 / 12) Monthly…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The size of the payment can be computed by using the PMT formula of excel. The values require for…

Q: How much must you deposit each year into your retirement account starting now and continuing through…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: How much must be deposited at the end of every six months for 5 years to accumulate to $2171.00 at…

A: Given information: Future value is $2,171.00 Interest rate is 5% compounded semi-annually, Number of…

Q: Find the compound amount for the following deposit. $16,000 at 5% compounded quarterly for 10 years.…

A: The future value (FV) of an investment is the value of the investment at a future point in time,…

Q: What is the discounted value of payments of $63.00 made at the end of each month for 3 years if…

A: This is a case of an annuity. Annuity is a fixed constant sum of payments that are made on a…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: Future value (FV) = $150,000 Interest rate = 7.6% Semi annual rate (r) = 7.6%/2 = 3.80% Period = 18…

Q: Determine the amount of the ordinary annuity at the end of the given period. (Round your final…

A: Formula to calculate FV: F = P * ([1 + i]^N - 1 )/i Wherein: P = $8,000 deposited semiannually i =…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

Q: If you deposit $500 per year in an account for six years at 9 percent compounded annually, how much…

A: Data given: Deposit per year=$500 n=6 year Rate=9% p.a. (compounded annually) Note: Assumed $500…

Q: Find the present value of the following perpetuity. Perpetuity Payment Made Payment Period Interest…

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: How much will deposits of $270 made at the end of each 6 months amount to after 5 years if interest…

A: Compound = Semiannually = 2Future Value = fv = $270Time = t = 5 * 2 = 10

Q: How much will deposits of $40 made at the end of each month amount to after 7 years if interest is…

A: According to the financial theory known as the time value of money, an asset's intrinsic value is…

Q: Find the present value of the following perpetuity. Made At: end Perpetuity Payment $3,000 Payment…

A: Present value of perpetuity refers to the present value of the equal cash flow for the infinite…

Q: Determine the amount of the ordinary annuity at the end of the given period. (Round your final…

A: When the payments are made at the end of each period it is ordinary annuity. It is usually made at…

Q: Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: Future value of ordinary annuity formula is: C is periodic deposits r is periodic interest rate n…

Q: Determine the amount of the ordinary annuity at the end of the given period. (Round your final…

A: The concept of time value of money will be used here. An ordinary annuity is that annuity in which…

Q: Determine the amount of the ordinary annuity at the end of the given period. (Round your final…

A: Formula to calculate FV: F = P * ([1 + i]^N - 1 )/i in which : P = $800 semiannually depositedi =…

Q: Find the compound amount for the following deposit. $18,000 at 6% compounded semi-annually for 7…

A: Answer Amount 18000 Year 7 Rate 6% Comounding Semi-Annualy

Q: If you deposit #9989 into an account paying 3.6% annual interest compounded monthly, how much money…

A: The importance of future value: Future value is a crucial estimate since it informs investors and…

Q: How much will deposits of $35 made at the end of each month amount to after 12 years if interest is…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: Determine the amount of the ordinary annuity at the end of the given period. (Round your final…

A: To determine the future value of an ordinary annuity, we can use the formula: FV = PMT x [(1 + r)^n…

Q: What is the discounted value of payments of $120.00 made at the end of each month for 7.5 years if…

A: Given, Monthly payments $120 Term is 7.5 years Rate 8% compounded monthly

Q: Determine the amount of the ordinary annuity at the end of the given period. (Round your final…

A: Formula to calculate Future value of Ordinary Annuity is: F = P * ([1 + i]^N - 1 )/i Where in:…

Q: Juliana has contributed $2.108.00 every six months for the last 9 years into an RRSP fund The…

A: The concept of the time value of money states that due to the interest-earning capacity of money,…

Question

100%

How much must be deposited at the end of each month for 7.75 years to accumulate to $1264.00 at 7% compounded monthly?
The required deposit is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 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

How much must be deposited at the end of each month for 9.5 years to accumulate to $3866.00 at 10% compounded monthly? The required deposit is $________ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
How much must be deposited at the end of every six months for 5 years to accumulate to $2171.00 at 5% compounded semi-annually? The required deposit is $? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $600 deposited quarterly at 6.8% for 10 years.
If you deposit $500 per year in an account for six years at 9 percent compounded annually, how much will you have in the account? Round your answer to the nearest dollar. $3,270 Give typing answer with explanation and conclusion
Find the present value of the following perpetuity. Made At: end Perpetuity Payment $3,000 Payment Period 6 months Interest Rate 10.7% Conversion Period quarterly The present value is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $500 deposited annually at 5.4% for 8 years
Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $100 deposited per month at 2% per month for 24 months
If you deposit #9989 into an account paying 3.6% annual interest compounded monthly, how much money will be in the account after 8 years? Round your answer to 2 decimal places.
Determine the amount of the ordinary annuity at the end of the given period. (Round your final answer to two decimal places.) $8000 deposited semiannually at 4.8% annual interest for 5 years.
How much must you deposit into an account today so that you can have $25,000 in twelve years? Assume that the account earns 6% per year compounded quarterly. You should deposit $ (Round the final answer to the nearest cent as needed. Keep all decimal places as you work through the problem.)
..........
Find the present value of the following perpetuity. Perpetuity Payment Payment Period Made Interest Conversion At: Rate Period $130 end 3 months 8.6% monthly The present value is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)