None Money accumulates in a fund at an annual effective interest rate of i during the first 5 years, and at an annual effective interest rate of 21thereafter.A deposit of 1 is made into the fund at time 0. It accumulates to 3.09 at the end of 10 years and to 13.62 at the end of 20 years.What is the value of the deposit at the end of 7 years?(This question is worth 2 points)Fund1012?3.0913.625671020Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.a1.90b1.98C2.13d2.563.04

Using a financial calculator:Note that the annual effective interest for the first 5 years is i and…

Answered: Money accumulates in a fund at an…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 23E

See similar textbooks

Similar questions

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?
You deposit $600 today into a fund that you intend to leave invested for 6 years. The fund earns 6% interest compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the value of the fund to be accumulated at the end of year 6? (Round future value answer to two decimal places (e.g., 52.75) and interest rate to one decimal place (e.g., 527.5).) Inputs Calculator N Keys Future value $ 6 I 6 PV 600
FV = $ 3) Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. HINT [See Quick Example 2.] (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $20,000 in a fund paying 2% per year, with monthly payments for 5 years PMT = $ 4)
You deposit the following at the end of each year into a growth mutualfund that earns 11 percent per year:Year Deposit ($)1 4,0002 3,5003 2,5004 2,0005 1,700 ======== $13,700a. How much should the fund be worth at the end of 5 years?b. How much interest have you earned in total?
A trust fund is to be formed by depositing #4766 twice a year for 7 years in a bank that promises to pay a fixed rate over the entire term. If the amount of the fund at the end of the term is #86123, then what is the rate (in %) compounded semi-annually? Round your answer to 2 decimal places.
You deposit $9500 per quartely for 1 years at i, = 8.31 %. This fund then provides for a perpetuity of $6100 per year, with the first payment made n month after the final deposit. At the time of the first perpetuity payment, interest rates fall to i, = 2.37 %. Find n. %3D Answer: 30.36
A trust fund amounting to ₱6700000 earns 7.4% annual interest. If ₱150,000 is to be withdrawn at the end of each year in the first 5 years, what is the maximum amount that can be withdrawn annually at the end of each year from the 6th year onward to make the fund last forever?
2) Fund X earns i(12) = 6% interest, while Fund Y earns i(12) = 3% interest (and both start off with no money in them). You deposit $1000 into fund X at the end of each month for 20 years and at the end of each month, withdraw the month's interest and deposit it into fund Y. Find the accumulated value in fund Y at the end of the 20 years. Also fill in the following table Month 1 3 239 240 ... Amount in ..... 1st account Amount deposited .... into 2nd account
You deposit 20,000 today into a fund paying ?(1)=8%. From this fund, you receive 10 payments of R, with the payments made at the end of 2 years, 4 years, 6 years, …, 20 years. What is R?
A fund is built with annual payments increasing by $1 from $1 to $10 and then decreasing by $1 to $0. The first payment of $1 is made today. If the fund is used to purchase a ten-year level annuity with the first payment at twenty years from today, what is the amount of the level payment? (Assume an annual effective rate of interest of 4%.) Possible Answers A B D <$16 c≥ $17 but < $18 E ≥ $16 but < $17 ≥ $18 but < $19 ≥ $19
I need help with this question
What is the monthly payment for a home costing $475,000 with a 20% down payment and the balance financed for 30 years at 6.5%? (a) State the type. A. present valueB. future value C.ordinary annuityD.amortizationEsinking fund (b) Answer the question. (Round your answer to the nearest cent.)

SEE MORE QUESTIONS

Recommended textbooks for you

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Financial Accounting Intro Concepts Meth/Uses

Finance

ISBN:

9781285595047

Author:

Weil

Publisher:

Cengage

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS