Investing Find the final amount (rounded to the nearest dollar) in eachof these retirement accounts, in which the rate of return on the accountand the regular contribution change over time. (See Example 3.)9. $400 per month invested at 4%, compounded monthly, for 10years; then $600 per month invested at 6%, compoundedmonthly, for 10 years. 12. $1500 per quarter invested at 7.4%, compounded quarterly, for15 years; then $1000 per quarter invested at 4.2%, compoundedquarterly, for 10 years. (Compare with Exercise 11.)

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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Find the final amount in the following retirement account, in which the rate of return on the account and the regular contribution change over time. $649 per month invested at 6%, compounded monthly, for 5 years; then $774 per month invested at 7%, compounded monthly, for 5 years. What is the amount in the account after 10 years? (Round to the nearest dollar as needed.)
Find the final amount in this retirement account, in which the rate of return on the account and the regular contribution change over time. $200 per month invested at 5%, compounded monthly, for 15 years; then $700 per month invested at 7% compounded monthly for 15 years
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Answer the following questions using Excel's RATE, NPER, PMT, PV and FV functions. 2. What sum of money invested today in a retirement fund will permit withdrawals of $600.00 at the end of each month for twenty years if interest is 6% compounded semi- annually?
Find the final amount (rounded to the nearest dollar) in this retirement account, in which the rate of return on the account and the regular contribution change over time. $2,000 per quarter invested at 5.2%, compounded quarterly, for 15 years; then $2,500 per quarter invested at 8.6%, compounded quarterly, for 20 years. OA. About $2,468,780 B. About $701,437 OC. About $1,508,863 D. About $1,651,469
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Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 29 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 29. The annuity will extend from the EOY 30 to the EOY 36. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest and annuity table for continuous compounding when i=8% per year. a. The accumulated savings amount at the end of 29 years will be $275384. (Round to the nearest dollar.) b. The value of the annuity will be $41655. (Round to the nearest dollar.)
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