Michael deposits $1000 at the end of each year for 10 years. Determine the accumulated value...

Michael deposits $1000 at the end of each year for 10 years. Determine the accumulated value of these deposits at the end of 10 years if the interest rate is 5% per annum for the first 5 years and 6% per annum thereafter, compounded annually throughout.

Expert Solution

Therefore, Accumulated Value = $13031.63

jeff jeffy answered 2 years ago

1.Deposits of $1000 are made at the beginning of each year for three years. The balance...

1.Deposits of $1000 are made at the beginning of each year for three years. The balance at the end of each year (before the deposit for the next year) was $1100, $2000, and $3400, respectively. Find the time-weighted yield rate. 2. A 10,000 par value 10-year bond with 8% annual coupons is bought at a premium to yield an annual effective rate of 6%. Calculate the interest portion of the 7th coupon.

You will make deposits of $1,000 at the end of each year for 40 years in...

You will make deposits of $1,000 at the end of each year for 40 years in your investment account. After the 40th deposit, you will immediately withdraw all money from the account to buy a retirement annuity for 35 years with equal annual payments (paid at year-end) from a life insurance company. If the annual rate of return over the entire period (75 years) is 5%, how much is the annual payment from the insurance company? The amount of your...

A woman deposits $14,000 at the end of each year for 10 yearsin an investment...

A woman deposits $14,000 at the end of each year for 10 years in an investment account with a guaranteed interest rate of 4% compounded annually. (a) Find the value in the account at the end of the 10 years. (b) Her sister works for an investment firm that pays 3% compounded annually. If the woman deposits money with this firm instead of the one in part (a), how much will she have in her account at the end of 10 years? (c)...

If $1000 is deposited at the end of each year for 5 years into an ordinary...

If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 7.59% compounded annually, construct a balance sheet showing the interest earned during each year and the balance at the end of each year. Complete the balance sheet. Period Amount Interest Balance 1 $1000.00 2 $1000.00 3 $1000.00 4 $1000.00 5 $1000.00 (Round to the nearest cent as needed.)

Find the present value of $1000 paid at the end of each month for 5 years...

Find the present value of $1000 paid at the end of each month for 5 years at 12% compounded semi-annually If possible, please use in terms of a financial calculator

16. If you deposit $1000 at the end of each of the next 10 years, how...

16. If you deposit $1000 at the end of each of the next 10 years, how much will you have in 20 years if you earn 10% APR compounded annually?A. $41,338B. $40,187C. $42,492D. $43,937E. $42,531 Show Process Please

Mary makes 10 annual deposits of $1000 each into an account. Beginning one year after the...

Mary makes 10 annual deposits of $1000 each into an account. Beginning one year after the first deposit she receives a check for 6% of the value of this account. She deposits these checks into an account that earns interest at 4%. Find the total value of her accounts one year after she makes the last $1000 deposit.

A $1000 par value 4% bond with semiannual coupons matures at the end of 10 years....

A $1000 par value 4% bond with semiannual coupons matures at the end of 10 years. The bond is callable at $1050 at the ends of years 4 through 6, at $1025 at the ends of years 7 through 9, and at $1000 at the end of year 10. Find the maximum price that an investor can pay and still be certain of a yield rate of 5% convertible semiannually. ANSWER: 922.05

Compare the accumulated values at the end of 10 years if P100 is invested at the...

Compare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per year compounded annually, semi-annually, quarterly, monthly, daily, and continuously.

A series of 10 end-of-year deposits is made that begins with $9,000 at the end of...

A series of 10 end-of-year deposits is made that begins with $9,000 at the end of year 1 and decreases at the rate of $300 per year with 8% interest. What amount could be withdrawn at t = 10? Type your answer here Round entry to the nearest dollar. Tolerance is ±4. Do it by hand and show your work please.

Question