Serena Medavoy will invest $7,680 a year for 20 years in a fund that will earn 4% annual interest.Click here to view factor tables.If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end,what amount will be in the fund in 20 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g.458,581.)First payment todayFirst payment at year-end$+A$

The future value of an investment is the total value of all contributions (both initial and ongoing)…

Answered: Serena Medavoy will invest $7,680 a…

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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2. An investor is setting up a fund which requires 20 years of contributions. The investor pays £50 per month for 20 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 9%. What is the value of the fund after 20 years? £ 数字 Enter an answer correct to 2 decimal places.
You are chairperson of the investment fund for Middle Hockey League. You are asked to set up a fund of quarterly payments to be compounded quarterly to accumulate a sum of $410,000 after 10 years at an 8 percent annual rate (40 payments). The first payment into the fund is to occur three months from today, and the last payment is to take place at the end of the 10th year. Use Appendix A and Appendix C. (Round "FV Factor" to 3 decimal places. Round your intermediate calculations to the nearest whole dollars. Round the final answers to the nearest whole dollar.) a. Determine how much the quarterly payment should be. Quarterly payment $5,437.57 ✪ b. On the day after the sixteenth payment is made (the end of the fourth year) the interest rate goes up to a 12 percent annual rate, and you can earn a 12 percent annual rate on funds that have been accumulated as well as all future payments into the fund. Interest is to be compounded quarterly on all funds. Determine how much the revised…
Jimmy deposits $3,600 now, $ 2,500 3 years from now, and $ 5,800 6 years from now. Interest is 6 % for the first 3 years and 7 % for the last 3 years. (Round your answers to the nearest whole dollar. The tolerance is +/- 4.00) a. How much money will be in the fund at the end of 6 years? $ b. What is the present worth of the fund? $ c. What is the uniform series equivalent of the fund (uniform cash flow at end of years 1-6)? 69
2. An investor is setting up a fund which requires 10 years of contributions. The investor pays £150 per month for 10 years. All payments are made in arrears, i.e at the end of the period. The effective annual rate i = 6%. What is the value of the fund after 10 years? £ 数字 Enter an answer correct to 2 decimal places.
Alan Kaminski just received a signing bonus of $ 1,600,000. His plan is to invest this payment in a fund that will earn 10%, compounded annually. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)Click here to view the factor table. https://education.wiley.com/content/Kieso_Intermediate_Accounting_17e/media/simulations/interest_rate_tables.pdf
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Chris Bogut just received a signing bonus of $1,076,000. His plan is to invest this payment in a fund that will earn 8%, compounded annually. Click here to view factor tables. (a) Your answer is incorrect. If Bogut plans to establish the AB Foundation once the fund grows to $2,150,924, how many years until he can establish the foundation? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 25.) years
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?
Serena Monroe wants to create a fund today that will enable her to withdraw $31,300 per year for 8 years, with the first withdrawal to take place 5 years from today. Click here to view factor tables. If the fund earns 11% interest, how much must Serena invest today? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Investment amount $
On September 1, 2010, you decided to put $15000 in a money market fund. On March 1, 2015, you deposit another $16000 and on Jan 1, 2018, you added another $ 18000. This fund pays interest at the annual rate of 7.2%, compounded monthly. Find the future value of the fund on January 1, 2019, one year after the third deposit.

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