Henry is investing $44,080 at the end of each year in a fund that earns 6% interest.[Link to the factor table]In how many years will the fund be at $370,000? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round the final answer to 0 decimal places, e.g., 15.)[Input box for Years]

Calculation of no. of years Compound Interest formula - A = P(1 + r)t In the above expression, A…

Answered: In how many years will the fund be at…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Serena Medavoy will invest $7,680 a year for 20 years in a fund that will earn 4% annual interest. Click here to view factor tables. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.) First payment today First payment at year-end $ +A $
K Find the amount of each payment into a sinking fund if $14,000 must be accumulated Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly Round to the nearest cent Click here to view part 1 of the Sinking Fund table. Click here to view part 2 of the Sinking Fund table. OA. $829.92 OB. $4,597 32 OC. $1,180.06 OD. $1,073.52
am. 125.
A corporation creates a sinking fund in order to have $640,000 to replace some machinery in 8 years. How much should be placed in this account at the end of each quarter if the annual interest rate is 6.1% compounded quarterly? (Round your answers to the nearest cent.) $11731.10 x How much interest would they earn over the life of the account? $ 170756.04 X Determine the value of the fund after 2, 4, and 6 years. 2 years $99013.71 X 4 years $210771.88 X 6 years $336914.93 X How much interest was earned during third quarter of the 4th year?
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?
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For the sinking fund, use Table 12-1 to calculate the amount (in $) of the periodic payments needed to amount to the financial objective (future value of the annuity). (Round your answer to the nearest cent.) Sinking Fund Payment $ 27658 x Payment Frequency every year Time Period (years) 14 Interest Nominal Rate (%) Compounded annually 8 Future Value (Objective) $750,000
1. Let the annual interest rate be 6 %. Compute 871 Enter an answer correct to 6 decimal places. ä7 Enter an answer correct to 6 decimal places. 2. A fund is to be created which pays out a scholarship of £8,000 every year in perpetuity. The first scholarship will be paid out in 9 years' time. Assuming an interest rate of 2%, how much should be paid into the fund? £ Enter an answer correct to 2 decimal places.
) What maximum annual withdrawals will a $300,000 fund earning 7.75% compounded annually sustain for 25 years if the withdrawals are made: At the beginning of each year? ___________ At the end of each year? __________
An endowment fund is providing an annual scholarship of P50,000 for the first five years, P60,000 for the next five years, and P90,000 thereafter. The fund will be established today and will award the first scholarship after a year. The fund earns 4.5 % annual interest. Find the present worth of this cost.
What sum of money must be deposited in a trust fund to provide a scholarship of $1550, quarterly for infinite period, if interest is 7.2% compounded quarterly? (Money should be rounded to 2 decimal place) USE ONLY CALCULATOR TO CALCULATE YOUR ANSWERS. PMT VY CAY 1 PV 1550 0.072 4 0.018 86111.11 4
Using the sinking fund Table 13.3, complete the following: (Do not round intermediate calculations. Round your answer to the nearest cent.) Frequency of payment Payment amount end of each Required Interest Length of time amount rate period 24,700 Quarterly 5 years 8% acer %24

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In how many years will the fund be at $370,000? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places, e.g. 15.) Yoarg