ncial feasibility of the civic center. A nilanthropist with a vacation home in the area promises to donate $700,000 if the town can ise the other $300,000 within three years. You estimate that the town can hold a series of enefits during the vacation months of June, July, August, and September and raise $20,000 er month. Assume it is now the end of September. The first deposit of $20,000 will be made the end of next June. Funds on deposit bear interest at 7.2 percent per year, compounded nonthly. The deadline for reaching the $300,000 balance in the fund is 36 months from ow and will include the deposit and interest payment at the end of September, three years rom now. a) How much will be in the fund at that time if all projections are correct? b) By how much should the monthly deposits be increased or decreased to come out to exactly the $300,000 amount? (Can this increase or decrease be found simply by

ncial feasibility of the civic center. A nilanthropist with a vacation home in the area promises to donate $700,000 if the town can ise the other $300,000 within three years. You estimate that the town can hold a series of enefits during the vacation months of June, July, August, and September and raise $20,000 er month. Assume it is now the end of September. The first deposit of $20,000 will be made the end of next June. Funds on deposit bear interest at 7.2 percent per year, compounded nonthly. The deadline for reaching the $300,000 balance in the fund is 36 months from ow and will include the deposit and interest payment at the end of September, three years rom now. a) How much will be in the fund at that time if all projections are correct? b) By how much should the monthly deposits be increased or decreased to come out to exactly the $300,000 amount? (Can this increase or decrease be found simply by

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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A schools parent council wants to setup up a scholarship fund. How much needs to be invested today so that a scholarship of $1000 can be awarded every year for the next 10 years. Interest on the fund is 7% and will be compounded annually
An engineer will deposit 15% of her salary each year into a retirement fund. If her current annual salary is $80000 and she expects that it will increase by 5% (g) each year, what will be the present worth of the fund after 35 years if it earns 5% interest? (Answer: $400,000) Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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:
You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. Thesign will cost $4,300 and will be posted for one year. You expect that it will generate additionalrevenue of $817 a month. What is the payback period?
You must decide whether to buy, build or lease a building for your business needs over the next 10 years. If you decide to build, you must determine if it is better to buy an existing building and modify it or buy land and build one to match your needs. Leasing an appropriate building will cost $10,000 per month with an annual increase of 3% per year and will require some retrofitting to suit your needs ($700,000). Empty land will cost $2,500,000 and the construction of a new building would be $3,000,000. You can buy an existing building for $2,500,000 but you will have to modify it to your needs at a cost of $1,200,000. However, the building itself is quite old and will be at the end of its useful life when the ten years are up. You estimate that the land alone is worth $2,000,000. There is a municipal election scheduled in the next months. The frontrunner, who has an estimated 70% chance of winning, is prioritizing core services and the environment. If they win, there is a 65% chance…
HR wants to offer a Country Club membership for a group of employees that will cost the company $10,000 dollars a year. They will begin annually starting one year from now. 1. What amount must be invested today at 8.0% compounded annually to fund the scholarship program in perpetuity? 2. Given the current economic climate the CEO has lowered the initial investment amount you had available to $100,000, how much do you now have for the Country Club membership program?
One year ago, the Jenkins Family Fun Center deposited $3,400 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $5,200 to this account. They plan on making a final deposit of $7,400 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent? Multiple Choice $18,516.29 $19,019.26 $19,431.85 $19,928.37 $17,421.48
After having not gone anywhere over the past few years due to COVID, you would like to begin planning your next family vacation. You plan on taking your family to the Walt Disney World for a magical vacation in two years. Your hope is that, by then, COVID-related restrictions will have been eased. You are also hoping that the new Guardians of the Galaxy attraction will be completed by then. Starting today, you will begin making quarterly deposits of $600 into a savings account that pays interest quarterly (every 3 months). The annual interest rate earned in this account is 4% APR (1.00% quarterly), If you make your first deposit today and continue making quarterly deposits into the account for the next two years, how much money will you have saved for your vacation after you make your final payment at the end of the second year (9 total deposits)? The amount of money saved in the account at the end of the 2nd year is closest to which of the following? O A. $5,092 O B. $4,591 O C.…
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Solve by using the sinking fund or amortization formula. Betty Price purchased a new home for $245,000 with a 10% down payment and the remainder amortized over a 15 year period at 9% interest. (a) What amount (in $) did Betty finance? $ (b) What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.) $ (c) What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.) $
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