KMr. Deneau accumulated $94,000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $5100 atthe end of every three months from the fund. If interest is 10.35% compounded monthly, for how long can Mr. Deneaumake withdrawals? State your answer in years and months (from 0 to 11 months).He can make withdrawals foryear(s) andmonth(s).B

Answered: K Mr. Deneau accumulated $94,000 in an…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Joe Franklin deposits $22,000 in a savingsaccount that pays 6% interest compounded monthly.Three years later, he deposits $16,000. Two yearsafter the $16,000 deposit, he makes another deposit inthe amount of $13,500. Four years after the $13,500deposit, half of the accumulated funds are transferredto a fund that pays 8% interest compounded quarterly. How much money will be in each account sixyears after the transfer?
Twelve years ago, you deposited $25,500 into an investment fund.Five years ago, you added an additional $15,000 to that account. You earned 9%,compounded semi-annually, for the first 12 years, and 7.5%, compoundedannually, for the last five years. Required:a. What is the effective annual interest rate (EAR) you would get for yourinvestment in the first 12 years?b. How much money do you have in your account today?c. If you wish to have $75 000 now, how much should you have invested 17 yearsago?
Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest at 10% compounded annually. Required: How much would Samuel have to invest on: January 1, 2019, if the first withdrawal is made on January 1, 2019?
Kyle borrowed P100,000 to be paid in 10 years, and established a sinkingfund to provide for the payment of this obligation. The deposits with thefund will be made at the end of every six months. If money is worth 8%compounded semi-annually, what should be the amount of each deposit.
Two years ago, a person borrowed $10,000 at 12% interest compounded monthly, which is to be paid in equal monthly payments over 5 years. Now the person acquired an additional fund of $3000. How much it would be worth at the end of the 5-year period if the monthly payment is then invested at 7% compounded monthly?
John already has $19,598 in his savings account. He plans to make contributions of $753.35 at the end of every three months, until he reaches $47,100. The interest rate is 9.12% compounded annually. a) In how many years and months will he reach his goal? Round up to the next month. P/Y = N = He will reach his goal in A year(s) and A month(s). b) After John reaches $47,100, he wants to withdraw $3,700 at the start of each half year. For how many years and months can he make the withdrawals? Round up to the next month. P/Y= A/ N = A He will withdraw for A A/ year(s) and A month(s).
Question At the beginning of each month, $400 is deposited into a scholarship fund. The fund earns 5% annual interest, compounded monthly, and paid into the account at the end of the month. How much is in the account if deposits are made for 6 years? (Round your answer to the nearest cent if necessary.)
On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2018 and in 2019? Show Transcribed Text
How much can be paid in scholarship at the beginning of each month if $231,500 is deposited in a trust fund if interest is 5.6% compounded monthly?
Jeff deposits 10 into a fund today and 20 fifteen years later. Interest for the firstten years is credited at a nominal discount rate of d compounded quarterly, and thereafterat a nominal interest rate of 6% compounded semiannually. The accumulated balance in thefund at the end of 30 years is 100. Calculate d.
Lucy won a large sum in the lottery. She invested part of her winnings into a fund earning 7.95% compounded monthly. She has arranged a systematic withdrawal plan that provides for 120 monthly payments increasing at a constant rate of 0.9% per payment. The first payment of $850 is due one month after she set up the fund. How much interest is included in the payments?
A couple deposits $18,000 into an account earning 4% annual interest for 20 years. Calculate theinterest if it is compounded quarterly. Round your answer to the nearest cent

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