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

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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?
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 $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
What is the present value of a perpetuity of $8,447 per year given an interest rate of 8.2%, assuming that the first cash flow occurs today (that is, in year 0)? Record your answer as a dollar amount rounded to 2 decimal places , but do not include a dollar sign or any commas in your answer . For example , enter $ 12,327.24987 as 12327.25 .
Explains it correctly
Ten thousand pesos is deposited annually for 10 years with an annual interest rate of 3.2%, how much will be in the fund at the end 10 years? A P121535.29 В P 107473.87 P115700.33 D P 103304.05
What is the future value of $117,000 invested for 5 years at 14% compounded monthly? (a) State the type. present value future value amortization ordinary annuity sinking fund (b) Answer the question. (Round your answer to the nearest cent.)
5. 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%.)
Show Solution. Topic: Perpetuities 4. What amount is required to fund a perpetuity that begins annual payments of P50,100 immediately, if the funds can be invested to earn 11% compounded quarterly?
On January 1, 2021, you deposited $6,100 in a savings account. The account will earn 10 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 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 2. What is the total interest for the 4 years? (Future Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. 3. How much interest revenue did the fund earn in 2021 and in 2022?
Pls show by using both formula and excel also.
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $50,000 in a fund paying 3% per year, with quarterly payments for 20 years PMT= $ _______ ??

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