If P5000.00 is invested at the end of each quarter for 6 years, at an interest...

If P5000.00 is invested at the end of each quarter for 6 years, at an interest rate of 7% compounded bimonthly, what does the total peso amount available 3 years after the last deposit? Draw Cash flow diagram

Expert Solution

Ans:

Please find attached Sheet below, Formulas sheet is also attached for learning.

Final balance available 3 years after the last deposit : $182,262.57 or $182,263.

For any query please ask in comment box, we are happy to help you. Also please don't forget to provide your valuable feedback. Thanks!

Quarter	Beginning of quarter (A)	Total amount at beginning (B)	Interest @7% per annum compounded Bimonthly on (C)	Amount Invested (D)	End Of Quarter (B + C D)
1	-	-	-	5,000.00	5,000.00
2	5,000.00	5,000.00	88.14	5,000.00	10,088.14
3	10,088.14	10,088.14	177.83	5,000.00	15,265.98
4	15,265.98	15,265.98	269.11	5,000.00	20,535.09
5	20,535.09	20,535.09	361.99	5,000.00	25,897.08
6	25,897.08	25,897.08	456.52	5,000.00	31,353.60
7	31,353.60	31,353.60	552.70	5,000.00	36,906.30
8	36,906.30	36,906.30	650.59	5,000.00	42,556.89
9	42,556.89	42,556.89	750.20	5,000.00	48,307.09
10	48,307.09	48,307.09	851.56	5,000.00	54,158.65
11	54,158.65	54,158.65	954.71	5,000.00	60,113.36
12	60,113.36	60,113.36	1,059.68	5,000.00	66,173.05
13	66,173.05	66,173.05	1,166.51	5,000.00	72,339.55
14	72,339.55	72,339.55	1,275.21	5,000.00	78,614.76
15	78,614.76	78,614.76	1,385.83	5,000.00	85,000.59
16	85,000.59	85,000.59	1,498.40	5,000.00	91,498.99
17	91,498.99	91,498.99	1,612.95	5,000.00	98,111.94
18	98,111.94	98,111.94	1,729.53	5,000.00	1,04,841.47
19	1,04,841.47	1,04,841.47	1,848.16	5,000.00	1,11,689.63
20	1,11,689.63	1,11,689.63	1,968.88	5,000.00	1,18,658.50
21	1,18,658.50	1,18,658.50	2,091.72	5,000.00	1,25,750.23
22	1,25,750.23	1,25,750.23	2,216.74	5,000.00	1,32,966.96
23	1,32,966.96	1,32,966.96	2,343.96	5,000.00	1,40,310.92
24	1,40,310.92	1,40,310.92	2,473.42	5,000.00	1,47,784.33
25	1,47,784.33	1,47,784.33	2,605.16	-	1,50,389.49
26	1,50,389.49	1,50,389.49	2,651.08	-	1,53,040.57
27	1,53,040.57	1,53,040.57	2,697.81	-	1,55,738.39
28	1,55,738.39	1,55,738.39	2,745.37	-	1,58,483.76
29	1,58,483.76	1,58,483.76	2,793.77	-	1,61,277.53
30	1,61,277.53	1,61,277.53	2,843.02	-	1,64,120.54
31	1,64,120.54	1,64,120.54	2,893.13	-	1,67,013.68
32	1,67,013.68	1,67,013.68	2,944.13	-	1,69,957.81
33	1,69,957.81	1,69,957.81	2,996.03	-	1,72,953.84
34	1,72,953.84	1,72,953.84	3,048.85	-	1,76,002.69
35	1,76,002.69	1,76,002.69	3,102.59	-	1,79,105.29
36	1,79,105.29	1,79,105.29	3,157.29	-	1,82,262.57

ekkarill92 answered 1 year ago

If you invested in each of the following, at the end of 10 years, which of...

If you invested in each of the following, at the end of 10 years, which of the following three investments would have the highest future value? need working process. Investment A pays $250 at the end of every year for the next 10 years 7% annually. Investment B pays $125 at the beginning of every 6-month period for the next 10 years at 7% semiannual compounding. Investment C pays $250 at the end of every year for the next 10...

I invested $15,000 at the end of each year for 20 years, earning an average of...

I invested $15,000 at the end of each year for 20 years, earning an average of 8% per year, then $20,000 at the end of each year for the next 20 years earning an average of 4 percent per year. I then contacted Annuity Corp. which offers annuities to retirees. If I receive an annual interest rate of 2.5%, how much could I receive at the end of each of the following 20 years if I invested my retirement savings?

A young executive deposits $300 at the end of each month for 6 years into an...

A young executive deposits $300 at the end of each month for 6 years into an account that earns 6% compounded monthly. How much is in the account after the 6 years? (Round your answer to the nearest cent). $ The executive then changes the deposits in order to have a total of $400,000 after 25 total years. What should be the revised monthly payment in order to meet the $400,000 goal? (Round your answer to the nearest cent). $...

6. An investment will pay $150 at the end of each of the next 3 years,...

6. An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $400 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 6% annually, what is its present value? Round your answer to the nearest cent. If other investments of equal risk earn 6% annually, what is its future value? Round your answer to the nearest cent....

Two receipts of $1,200 each are desired at the end of years 6 and 8. To...

Two receipts of $1,200 each are desired at the end of years 6 and 8. To make these receipts possible, three EOY payments $200, $300, and $400 amounts will be deposited in a bank at the end of years 2, 4, and 6. The bank’s interest rate (i) is 12% per year compounded semi-annually (every half year). 1. Generate the cash follow 2. Determine the future value of this cash flow at year 8.

what quarterly deposits at the end of each quarter should be made into a savings account paying the nominal interest of

1. what quarterly deposits at the end of each quarter should be made into a savings account paying the nominal interest of 4% compounded quarterly to accumulate $10,000 at the end of 10 years?2. Faith buys a used car by paying a $500 down payment plus $180 a month for 3 years. what was the price of the car if the interest rate on the loan is the nominal interest rate of 9% compounded monthly?

A loan is to be repaid by twenty end of quarter payments of $1,000. The interest...

A loan is to be repaid by twenty end of quarter payments of $1,000. The interest rate for the first two years is 6% convertible quarterly, and last three years is 8% convertible quarterly. Find the outstanding loan balance just after the 5th payment. Please don't use Excel! I'm looking to learn how to do it with the formulas.

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 loan is to be repaid in end of quarter payments of $1,000 each, with there...

A loan is to be repaid in end of quarter payments of $1,000 each, with there being 20 end of quarter payments total. The interest rate for the first two years is 6% convertible quarterly, and the interest rate for the last three years is 8% convertible quarterly. Find the outstanding loan balance right after the 6th payment.

Suppose you invest $150 at the end of each month for 6 years into an account...

Suppose you invest $150 at the end of each month for 6 years into an account earning 6% annual interest compounded monthly. After 6 years, you leave the money, without making additional deposits, in the account for another 26 years. How much will you have in the end? How would I solve this using the "TI-84 plus Tvm solver"?

Question