What is the principal invested at 6.5% compounded semi-annually from which monthly withdrawals of $240 can be made at the end of each month for 25 years?

Q: How much annual income would need to be generated over a 5 year period, to be equivalent to $4,000…

A: Calculate the annual income over a period of 5 years as follows:MS-Excel --> Formulas -->…

Q: You invest $1,000 for 3 years at 6% per annum compounding quarterly. What is the equivalent annual…

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

Q: If $450 is deposited at the end of each quarter into an account paying 10% compounded quarterly, how…

A: The question is based on the concept of Annuity.

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals when a first…

A: The flow of payments which are made at regular interval of time are termed as annuity when amount is…

Q: You place $4000 into an account paying 8% compounded annually. Inflation is 2.5% during each of the…

A: The real rate of return is the actual rate of return after taking inflation into account. The…

Q: What payment, made at the end of each year for 11 years, will accumulate to $14,500 at 6% compounded…

A: Here the effective annual rate (ear) will be computed first.EAR = (1+(given rate/m))^m-1Given rate…

Q: $2,000 is invested for 11 years with an APR of 3.68% and monthly compounding. The balance in the…

A: The future value is calculated using the formula,

Q: how much more interest will be earned if $4500 is invested for 7 years at an annual rate of 11%…

A: Given information: Present value is $4,500 Number of years is 7 Interest rate is 11%

Q: What is the accumulated sum of $200 a year for the next 15 years compounded annually at 7.5%?

A: Annuity referes to a series of regular payment for a definite period. If payments are made at the…

Q: n initial amount of 1400$ is invested in an account at an interest rate of 9% per year, compounded…

A: In finance we use the concept of time value of money to compute future values and present values.…

Q: A loan of $60000 at j4 = 6% is to be repaid over 20 years with semi-annual payments. a) How much…

A: Amortization refers to the systematic and regular repayment of the loan amount including the…

Q: $5,100 is invested at 6% compounded annually. what is the amount of the account at the end of 3…

A: Under Compound Interest Method, Interest is accumulated with the principle.

Q: An investment of $1,050 is made in an account compounded semi-annually at 6.8%. How much will the…

A: It can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv], [type]) Rate The…

Q: What is the accumulated value of deposits of $1020.00 made at the end of every six months for three…

A: Accumulated deposits include the amount deposited and compounding interest accumulated over the…

Q: A sum of P1,000 is invested now and left for eight years at which time the principal is withdrawn.…

A: We will use the concept of time value of money here. The concept says that money earns interest and…

Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: A sum of P10,000 was invested now and left for 6 years, at which this time the principal is…

A: Invested amount (P) = P 10,000 Interest rate (R) = 15.8% Period till first withdrawal (N1) = 6 Years…

Q: How much must be invested at the beginning of each year at 6%, compounded annually, to pay off a…

A: The time value of money (TVM) is a key topic for investors to understand since the same amount of…

Q: How much money would be accumulated in15years for a deposit of $15,000 made at the end-ofyear zero…

A: The formula used as follows:

Q: What is the principal invested at 4.75% compounded semiannually from which monthly withdrawals of…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: What is the accumulated value after 14 years of monthly deposits of $415.00 earning interest at 5.8…

A: Accumulated value, often referred to as the future value, represents the total worth of an…

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Amount invested is $2400 Time period is 10 years To Find:  4.2% compounded semiannually 4.2%…

Q: What payment is required at the end of each quarter for five years to repay a loan of $5600 at 6%…

A: In order to find the payment one can use excel and in excel PMT function is to be applied.

Q: A debt of $40 000 is to be repaid in installments due at the end of each month for seven years. If…

A: Payments refer to the regular fixed cash flow made against the debt amount in order to repay it over…

Q: An accountant wants to withdraw $30,000 from an investment at the beginning of each quarter for the…

A: Time value money is the concept widely used by the management and individual to determine the…

Q: If for the next 40 years you place $3,000 in equal year-end-deposits into an account earning 8% per…

A: The amount of $3,000 that is being placed in equal year end deposits is an annuity. The amount that…

Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…

A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…

Q: What is the amount of each payment if Plascote Industries borrows $32,600, at  an annual interest of…

A: for calculating amount to be paid for each installment we use PMT function in excel to determine the…

Q: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…

A: The present value is the addition of the discounted values of the future payments.

Q: A sum of money invested at 2% per 6-month period (semiannually) will double in amount in…

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: How much will be received in 6 years if Php35,000 is deposited in an account earning 5.5% interest…

A: Answer -  Formula for Future Value - FV=PV(1+i)n,   Where, PV = Present Value i= Interest Rate n =…

Q: a. Determine the equal payment series coumpound amount factor after 8 years b. Determine the total…

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

Q: How much money must be deposited at the end of each quarter if the objective is to accumulate…

A: Working note:

Q: how many years is required for $3,000 to increase by $4,000 if interest at 14% compounded quarterly

A: Investment can be defined as depositing funds in an asset to earn a profit or interest. Interest is…

Q: A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months.…

A: 1. Calculate the amount of periodic payments by using the EXCEL PMT formula. Note that there are 35…

Q: A loan of $401,000 at 5.02% compounded quarterly was to be settled with month-end payments of…

A: Future worth is computed by multiplying the existing value with a given interest rate.

Q: What should be the amount in an RRSP that is earning 7.00% compounded quarterly if it can be…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.