Starting six months after her grandson Robin's birth, Mrs. Devine made deposits of $230 into a trust fund every six months until Robin was eighteen years old. The trust fund provides for equal withdrawals at the end of each six months for four years, beginning six months after the last deposit. If interest is 4.89% compounded semi-annually, how much will Robin receive every six months?

Starting six months after her grandson Robin's birth, Mrs. Devine made deposits of $230 into a trust fund every six months until Robin was eighteen years old. The trust fund provides for equal withdrawals at the end of each six months for four years, beginning six months after the last deposit. If interest is 4.89% compounded semi-annually, how much will Robin receive every six months?

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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Carl is the beneficiary of a $28,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive the money over a 4-year period in equal installments at the end of each year. If the fund earns interest at the rate of 4%/year compounded annually, what amount will he receive each year? (Round your answer to the nearest cent.)
For 30 years, lilly contributed $180 every month to savings accountthat earns 1.6% interestcompounded monthly. After the 30 years, he stopped his regular contributions and let the account grow for the next 15 years. Determine the balance of the account at the end to the 45 years that he hadhis account.
To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine years after, he deposited another 10,000. How much will be available at his retirement? *
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John borrows $15000 for 5 years at an annual effective interest rate of %9. At the end of each year she pays the lender $1000 and deposits a level amount necessary to repay the loan in full after 5 years into a sinking fund that earns an annual effective interest rate of %4. Determine the total annual payment that John makes.
Minu deposits $950 at the end of each quarter for 6 years in an account that earns 11.8% per year compounded quarterly. At the end of 6 years she has $32 501.04. What would the amount of the annuity be if she doubles the time period to 12 years?
1. Lovely Mae’s deposit of 100,000 is placed into a college fund at the beginning of every month for 10 years. The fund earns 9% annual interest, compounded monthly, and paid at the end of the month. How much is in her account right after the last deposit? Show solution.
Reese contributed $250.00 every month into an RRSP for 5 years. What nominal annual rate of interest will the RRSP earn if the balance in Reese's account just after she made her last contribution was $16,750.00? The nominal annual rate of interest is % compounded monthly. (Round to two decimal places as needed.) C
Shelly deposits the $2000 she got as a birthday gift from her grandmother into an account earning 3.6% interest compounded monthly. She decides to also deposit $200 at the end of each month into the same account. How much will be in the account in 10 years?
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Luoxana contributed $5,000.00 every year into an RRSP for 18 years. "What nominal annual rate of interest will the RRSP earn if the balance in Luoxana's account just after she made her last contribution was $195,000.00?

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