Since the birth of his daughter, 17 years ago, Derek has deposited $150.00 at the beginning of every month into an RESP. The interest rate on the plan was 3.60% compounded monthly for the first 9 years and 4.40% compounded monthly for the next 8 years. calculate the amount

Q: Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from…

A: Working note for calculations. Note for Converting Quarter into years:- Number of year to deplete =…

Q: wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10…

A: Deposit A Amount = 10,000 End of year deposits N = 10 years   Deposit B Amount = 10,000 End of year…

Q: Starting today, Barbie and Ken each make deposits at the end of every year for 15 years. Barbie…

A: Since the accumulated amount will be the same for both B and K then the PMT will be similar as both…

Q: Asa has invested money from the settlement of an insurance claim. She plans to withdraw $1,920 from…

A: Fist we need to calculate present value of all withdrawals by using present value of ordinary…

Q: How much money did he have for retirement?

A: Future Value of annuity = A= R* (1+rm)n-1rmwhereA - future valueR - periodic paymentr - nominal…

Q: Lucas is starting a college fund for his newborn daughter. He decides to invest $200 a month in an…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Kyler deposits $225 each month into an annuity at 6.2% annual interest for 25 years . At the end of…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Eugene began to save for his retirement at age 26, and for 10 years he put $ 425 per month into an…

A: Here we have to use the concept of future value to determine the retirement amount.  The amount…

Q: May deposits PhP 20,000 into a fund at the beginning of each year for 10 years. At the end of 15…

A: This is a classic case of an annuity due, annuity perpetuity, annuity deferrals. First, we will…

Q: Vincent invested his savings into a Registered Retirement Savings Plan (RRSP) at an interest rate of…

A: Interest Rate(Compounded semi-annually) 3.50% Future Value After 1 Year  $…

Q: Tom has decided to invest $400 quarterly for 4 years in an ordinary annuity a 8%. As his financial…

A: Quaterly investment amount is $400 Time period is 4 years Interest rate is 8% To Find: Cash value…

Q: Ruth bought an insurance for 66,000 at 6% to receive an annuity for 16 years. Find the specified…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: Starting three months after her grandson Robin's birth, Mrs. Devin made deposits of $105 into a…

A: Mrs. Devin Compound = quarterly = 4 time = Dt = 18 * 4 = 72 quarters quarterly deposits = Dp = $105…

Q: Mary takes out a 20-year loan of $10,000. She repays her loan using the sinking fund method. She…

A: Sinking fund: It is a fund maintained by a company in which only interest payments are made during…

Q: Joseph purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It provided…

A: The purchase price of an annuity corresponds to current worth of annuity payments that make investor…

Q: open an annuity with $5,200.00 and makes monthly payments of $270.00 paid at the end of each month…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Eugene began to save for his retirement at age 27, and for 14 years he put $ 275 per month into an…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: To start saving for retirement, Alexandra opens an RRSP that earns interest at a rate of 4.9%…

A: The future value is useful to investors and financial planners, as they use it to estimate how much…

Q: Harold starts saving in order to fund his children's education. He decides to deposit $120 each…

A: The value of an asset at a future date is called future value.

Q: Jaime Bickers invests $4000 at the end of each semiannual period for 8 years. His financial advisor…

A: Calculate the future value as follows:

Q: Since the birth of her granddaughter, 19 years ago, Holly has deposited $150 at the beginning of…

A: Given, The monthly deposit is $150. Interest is 3.25% for first 7 years and 3.75% for the next 12…

Q: Since the birth of his granddaughter, 18 years ago, Kristen has deposited $300 at the beginning of…

A:

Q: At the time of her grandsons birth a grandmother deposits 13,000 in an account that pays 6.5%…

A: PV=Initial deposit = 13000   r=rate=6.5% (compounded monthly) n=21 years Monthly rate=r= 6.5%/12 No…

Q: Since the birth of his granddaughter, 20 years ago, Jason has deposited $200 at the beginning of…

A: 1. FVA after 7 years   = P * (([1 + I]^N - 1 )*(1+I))/I, where P is the payment amount= 200 I is…

Q: Mrs. Kimberly deposited P 300, 000 in an account earning 8% compounded every 6 months. On the 2th…

A: Compound interest: Compound interest denotes an interest computed on the total initial deposits and…

Q: a. What was the accumulated value of the RESP at the end of 8 years? $0.00 Round to the nearest cent…

A: Future Value: It represents the future worth of the present sum of the amount for a period of time.…

Q: Shiro’s grandfather has just announced that he’s opened a saving account for Shiro with a deposit of…

A:

Q: Starting six months after her grandson​ Robin's birth, Mrs. Devine made deposits of ​$230 into a…

A: Compounded semi-annually Interest earned above the interest already incurred is known as compound…

Q: Since the birth of her daughter, 20 years ago, William has deposited $50 at the beginning of every…

A: Time period is 20 years Monthly deposit is $50 Interest rate for first 8 years is 5.10% Interest…

Q: For 30 years, lilly contributed $180 every month to savings accountthat earns 1.6%…

A: Balance at the end of 45 years will be future value of monthly savings

Q: ne began to save for his retirement at age 30, and for 13 years he put $ 250 per month into an…

A: Future value of annuity is the future value of all the stream of cash flow. Future value of annuity…

Q: For the last 15 years Joseph has deposited $4500 at the end of every six months into an account…

A: Let's calculate the exact values step-by-step:1. Future Value of AnnuityFor the future value of the…

Q: Jill makes monthly payments of $125 into a savings plan which pays 7.5% annual interest. At the end…

A: Given, Monthly payments  (PMT)= $125 Annual interest  (r)     = 7.5% period (N)                = 30…

Q: 1. Cameron designates 10% of his monthly earnings as charitable contributions. After deducting this…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Shelly deposits the $2000 she got as a birthday gift from her grandmother into an account earning…

A: The company would be considering the value for future through the compounding of interest rates over…

Q: Mr. Peabody drove to his bank and deposited $500 at the end of every three months for 15.6 years.…

A: Interest rate = 4.95% compounded semi annuallyThe effective annual rate is The quarterly interest…

Q: Since the birth of his granddaughter, 20 years ago, Jacob has deposited $100 at the beginning of…

A: Monthly Deposit = 100 Beginning of period deposits   First 11 years: Interest Rate = 4.50%/12  Time…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.