You deposit the following, at the end of each year, into a growth mutual fund that earns 8% per year. Calculate the future total value of the fund at the end of 5 years. Enter Your answer rounded to decimal places, no dollar sign, ex. 5100.54 Year Deposit 1 8,000 2 6,000 3 4,500 4 9,500 5 6,000

You deposit the following, at the end of each year, into a growth mutual fund that earns 8% per year. Calculate the future total value of the fund at the end of 5 years. Enter Your answer rounded to decimal places, no dollar sign, ex. 5100.54 Year Deposit 1 8,000 2 6,000 3 4,500 4 9,500 5 6,000

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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Suppose you have the opportunity to invest in a fund that pays 12% interest compounded annually. Today, you invest $10,000 into this fund. Three years later (EOY 3), you borrow $5000 from a local bank at 10% annual interest and invest it in a fund. Two years later (EOY 5) you withdraw enough money from the fund to repay the bank load and all interest due on it. Three years from this withdrawal (EOY 8) you start taking $2,000 per year out of the fund. After five withdrawals of $2,000, you have withdrawn your original $10,000. The amount remaining in the fund is earned interest. How much remains?
please answer (D) Suppose that a woman deposits $10,000 into an investment fund that guarantees to pay 0.5% interest everymonth. That is, interest is compounded monthly at a rate of 0.5% per month. a) What is the nominal annual interest rate? b) What is the effective annual interest rate? c) Assuming that no additional deposits or withdrawals are made, use the appropriate compound interestfactors to determine how much the fund will be worth:i) After 1 year;ii) After 2 years. d) Verify that your answers in parts (b) and (c) are correct by constructing a table or spreadsheet thatshows how the initial deposit will grow over 2 years. At a minimum, your table or spreadsheet shouldinclude a row for each interest period over a 2-year planning horizon and show: the value of in the investment fund at the start of each interest period the amount of interest earned each interest period; and the value of the fund at the end of each interest period.Be sure to briefly explain how your table or…
(1) (D) Fund A is invested at an effective annual interest rate of 3%. Fund B is invested at an effective annual interest rate of 2.5%. At the end of 20 years, the total in the two funds is P 10,000. At the end of 31 years, the amount in Fund A is twice the amount in Fund B. Calculate the total in the two funds at the end of 10 years. Hint: Let A₁ = P₁(1.03)' and B, = P(1.025)' be the AV's of Funds A and B at time t respectively. Then use the equations, A20 + B20 = P10,000 and A31 = 2B31 to determine the values of PA and PB.
Using the sinking fund formula or a financial calculator, complete the following: (Do m answer to the nearest cent.) $ Required amount 24,900 Frequency of payment Quarterly Length of time 7 years Interest rate 8 % Payment amount end of each period
In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. How much must you invest each month in a mutual fund yielding 12.5% compounded monthly to become a millionaire in 10 years? (Round your answer to the nearest cent.
Please solve it ASPA
Using a discount rate of 5.5% compounded annually, a pension fund estimates that the present value of its assets and liabilities are $7 million and $4 million, respectively. The duration of the assets is 11 years and the duration of the liabilities is 27 years. (a) Suppose that the interest rate decreases to 5.45%. Estimate the relative changes in the fund's assets and liabilities. Express yours answers as percentages, to the nearest basis point. Relative Change in Assets % Relative Change in Liabilities % (b) Using your rounded answers from (a), estimate the absolute changes in the fund's assets and liabilities. Express your answers in millions of dollars, to the nearest thousand. Absolute Change in Assets $ million Absolute Change in Liabilities s $ million (c) The fund's net worth is defined as the difference between its assets and liabilities. Using your answers from (b), estimate the relative change in the fund's net worth. Express your answer as a percent, to the nearest basis…
If you wish to accumulate $10,000 over a 5-year period by placing $200 a month, starting next month, into a Roth IRA retirement fund that pays 6% per year, compounded quarterly with no interperiod compounding, the NPER function to determine the number of deposits is: (a) = NPER(4.568%,−200,10000) (b) = NPER(1.5%,200,10000) (c) = NPER(1.5%,−600,10000) (d) = NPER(2%,600,−10000)
please help with this Q
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
Gary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 5 13% 1.8424 PV ordinary annuity 5 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744 $25333 $50666 $14927 $29854
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $30,000 in a fund paying 5% per year, with monthly payments for 5 years, if the fund contains $10,000 at the start PMT = $ please round it to the nearest cent

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