Sean contributed equal deposits at the end of every month for 2 years into aninvestment fund. He then decided to stop making payments and left the money in thefund to grow for another 4 years. The fund was earning 3.23% compounded monthlyfor the entire period and the accumulated amount at the end of the term was$120,000.a. Calculate the amount in the fund at the end of 2 years.7Round to the nearest centb. Calculate the size of the periodic deposits into the fund.

This can be solved in excel. Put the cell for the monthly deposits as a blank. Now for determining…

Answered: Sean contributed equal deposits at the…

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

See similar textbooks

Similar questions

Shane invested $11,000 in a fund earning 5.5% compounded monthly. He will withdraw $800 from the fund every quarter with the first withdrawal being made 4 years from now. What is the total time until the last withdrawal? |years months Express the answer in years and months, rounded to the next period
Jason made a $300 payment at the end of each month into a CD that paid 4.25% compounded annually. Jennifer made a single initial deposit into the same CD. After 8 years, the future value of each CD was the same. Find the future value of these CDs. What was the amount of Jennifer's initial deposit? Compare the total amount each invested over the eight years. Who earned more interest and by how much? Jason Jennifer N = !3! 1% = 1% = PV = PV = PMT = PMT = FV = FV = P/Y = P/Y = C/Y = C/Y =
Find the amount of each payment to be made into a sinking fund earning 8% compounded monthly to accumulate $51,000 over 8 years. Payments are made at the end of each period The payment size is s (Do not round until the final answer. Then round to the nearest cent.) TE
Vv john made a deposit of 1000 into a fund at the beginning of each year for 20 years. at the end of year 20 years, he began making semiannual withdrawls of 3000 at the beginning of each 6 months, with a smaller final withdrawl to exhaust the fund. the fund earned an annual effective rate of 8.16%. calculate the amound of the final withdrawl
H5. Jordan deposited $23,500 into a fund at the beginning of every quarter for 20 years. He then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.31% compounded monthly. a. What was the accumulated value of the fund at the end of year 20? Round to the nearest cent b. What was the accumulated value of the fund at the end of year 23? Round to the nearest cent c. What is the total amount of interest earned over the 23-year period? Round to the nearest cent Show proper step by step calculation
A company deposited $5,500 into an investment fund at the beginning of every quarter for 6 years. It then stopped making deposits into the fund and allowed the investment to grow for 6 more years. The fund was growing at 5.25% compounded monthly. a. What was the accumulated value of the fund at the end of 6 years? Round to the nearest cent b. What was the accumulated value of the fund at the end of 12 years? Round to the nearest cent c. What was the amount of interest earned over the 12-year period? Round to the nearest cent
1. Emily and Jimmy each make deposits of 150 at the end of each year for 30 years. Starting at the end of the 31st year, Emily makes annual withdrawals of K for 10 years and Jimmy makes annual withdrawals of L for 10 years. Both funds have a balance of 0 after the last withdrawal. Emily's fund earns an annual effective interest rate of 8%. Jimmy's fund earns an annual effective interest rate of 6%. Calculate K-L Solution:
A corporation creates a sinking fund in order to have $910,000 to replace some machinery in 9 years. How much should be placed in this account at the end of each month if the annual interest rate is 5.7% compounded monthly? (Round your answers to the nearest cent.) $ How much interest would they earn over the life of the account? $ Determine the value of the fund after 2, 4, and 6 years. 2 years $ 4 years $ 6 years How much interest was earned during the third month of the 4th year? $
Miguel deposited $11,500 into a fund at the beginning of every quarter for 15 years. He then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 2.69% compounded monthly. a. What was the accumulated value of the fund at the end of year 15? b. What was the accumulated value of the fund at the end of year 19? c. What is the total amount of interest earned over the 19-year period? 2 company deposited $8,500 into an investment fund at the beginning of every quarter for 4 years. It then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.50% compounded monthly. a. What was the accumulated value of the fund at the end of 4 years ? b. What was the accumulated value of the fund at the end of 7 years ? c. What was the amount of interest earned over the 7-year period?
A corporation creates a sinking fund in order to have $910,000 to replace some machinery in 8 years. How much should be placed in this account at the end of each month if the annual interest rate is 6.8% compounded monthly? (Round your answers to the nearest cent.) $ How much interest would they earn over the life of the account? $ Determine the value of the fund after 2, 4, and 6 years. 2 years S 4 years S 6 years S How much interest was earned during the second month of the 6th year? S
A company deposited $14,500 into an investment fund at the beginning of every quarter for 7 years. It then stopped making deposits into the fund and allowed the investment to grow for 5 more years. The fund was growing at 3.50% compounded monthly. a. What was the accumulated value of the fund at the end of 7 years ? $0.00 Round to the nearest cent b. What was the accumulated value of the fund at the end of 12 years ? S0.00 Round to the nearest cent c. What was the amount of interest earned over the 12-year period? S0.00 Round to the nearest cent SA
What should be the amount in an RRSP that is earning 7.50% compounded semi- annually if it can be converted to an RRIF that will provide $250 at the beginning of ea month for 7 years? 4 8 Round to the nearest cent Question 5 of 6 Sabrielle deposited $13,500 into a fund at the beginning of every quarter for 19 years. She then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 5.70% compounded monthly. Question 4 of 6 a. What was the accumulated value of the fund at the end of year 19? a. What is the present annually? of A contract requires lease payments of $400 at the beginning of every month for 5 years. Question 6 of 6 ntract if t lease rate is 4.50% compounded

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS