Steven Bogut just received a signing bonus of $1,069,000. His plan is to invest this payment in a fund that will earn 8%, compoundedannually.Click here to view factor tables. (b)Instead of investing the entire $1,069,000, Bogut invests $278,200 today and plans to make 9 equal annual investments into thefund beginning one year from today. What amount should the payments be if Bogut plans to establish the $2,136,931 foundationat the end of 9 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)Payments

The concept of time value of money will be used here. As per the concept of time value of money the…

Answered: Instead of investing the entire…

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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You have accumulated $8,000 toward the down payment on a piece of lake front property in rural Minnesota. You wish to accumulate a total of $12,000 (i.e. an additional $4,000) for the down payment in four years. If you choose not to contribute more new funds to your down payment fund, what rate of return must your fund earn to reach your objective in the specified time? Assume that your investment fund compounds annually. Select one: a. 10.67% per year O b. 50.00% per year 12.50% per year O d. There is not enough information to answer this question. C.
Camosun College has just received a donation of $50,000. The donor has stipulated that the funds should be used to fund an ongoing annual bursary with the first payment given out in one year. If the money is invested into an account earning 3.71% compounded annually (j1), how much will the annual bursary be? Your Answer:
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?
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
An investor deposits $1000 at the beginning of each year for five years in a fund earning 5% effective. The interest from this fund can be reinvested at only 4% effective. Show that the total accumulated value at the end of ten years is 1250($111.04 - $1.04 −1).
Pearl Alvarez is investing $323,200 in a fund that earns 8% interest compounded annually. What equal amounts can Pearl withdraw at the end of each of the next 20 years? (Round factor values to 5 decimal places, eg 1.25124 and final answer to O decimal places, eg. 458,581) Yearly withdrawals=
Andrew Bogut just received a signing bonus of $1,082, 000. His plan is to invest this payment in a fund that will earn 8%, compounded annually. (Use the tables below.) If Bogut plans to establish the AB Foundatiion? instead of investing the entire $1,082, 000, Bogut invests $287,300 today and plans to make 9 equal annual investments into the fund beginning one year from today. What amount should the payments be if Bogut plans to establish the $2, 162, 918 foundation at the end of 9 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e. g. 458, 581.)
5
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Steven Spear invested $14,000 today in a fund that earns 10% compounded annually. Click here to view factor tables. To what amount will the investment grow in 3 years? To what amount would the investment grow in 3 years if the fund earns 10% annual interest compounded semiannually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment at 10% annual interest Investment at 10% annual interest, compounded semiannually $

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