Kevin deposits $1220.33 each quarter into an annuity account for his child's college fund. He wishes...

Kevin deposits $1220.33 each quarter into an annuity account for his child's college fund. He wishes to accumulate a future value of $95,000 in 15 years. Assuming an APR of 3.4%, how much of the $95,000 will Kevin ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.

Deposit:_______

Interest Earned:_______

Expert Solution

jeff jeffy answered 2 years ago

Quarterly deposits are made into a fund at the beginning of each quarter starting today for...

Quarterly deposits are made into a fund at the beginning of each quarter starting today for 5 years. The first 8 deposits are $1000 each and deposits increase by 1% per quarter thereafter. If the fund earns 8% effective annually, find the accumulated value at the end of 5 years. Please explain which equations you used and do not use excel.

you invest 2500 in your child's college fund at the end of each year for the...

you invest 2500 in your child's college fund at the end of each year for the next 12 years. at that time your kid will withdraw equal amounts at the end of the next four years. what is the annual withdrawal amount if the appropriate interest rate is 8%?

Suppose a young couple deposits $600 at the end of each quarter in an account that...

Suppose a young couple deposits $600 at the end of each quarter in an account that earns 6.8%, compounded quarterly, for a period of 2 years. After the 2 years, they start a family and find they can contribute only $200 per quarter. If they leave the money from the first 2 years in the account and continue to contribute $200 at the end of each quarter for the next 18 1/2 years, how much will they have in the...

Bob deposits $1,500 at the beginning of each quarter for sixteen years in a fund earning...

Bob deposits $1,500 at the beginning of each quarter for sixteen years in a fund earning a nominal rate of interest of 6% convertible monthly. The interest from this fund is paid out monthly and can only be reinvested at an effective annual rate of 5.2%. Find Bob’s yield rate for the twenty-year period.

Emily deposits $150 at the beginning of each quarter into an account earning 6.7% for 25...

Emily deposits $150 at the beginning of each quarter into an account earning 6.7% for 25 years. How much money will she have at the end of those 25 years?

13. Kevin wants to pay $17,500 each year on his investment account and would like to...

13. Kevin wants to pay $17,500 each year on his investment account and would like to retire with $2,580,000. Assuming the interest rate for Kevin’s investment account is 11.2% and that it will compound semiannually, how many years will it take before Kevin meets his investment goal of $2,580,000? 14. Part A: Assume you will receive a constant stream of $14,000 each year for 35 years. If the interest rate is 10.5% and it will compound annually, what will be...

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?

If Sam deposits $723 each month to his retirement account at a fixed interest rate of...

If Sam deposits $723 each month to his retirement account at a fixed interest rate of 4.12%, how long will it take his funds to reach $187,980? A. 22 years and 5 months B. 20 years and 2 months C. 15 years and 6 months D. 10 years and 2 months

Ryan wishes to allocate his money between T-bills and the risky BJKHD fund. He expects there...

Ryan wishes to allocate his money between T-bills and the risky BJKHD fund. He expects there is a 20% chance of a recession, a 50% chance of normal growth, and a 30% chance of an expansion. On average, BJKHD has had returns of -5% in recessions, returns of 10% in normal growth periods, and returns of 15% in expansions. What is the standard deviation of a complete portfolio that has 60% of his investment dollars in the BJKHD and the...

1. James deposits $200 in a bank account on the last day of each month. He...

1. James deposits $200 in a bank account on the last day of each month. He increases the deposit by $10 each month. The payments continue for a period of 36 months. What is the present value of these payments on the day of the first payment (to the nearest dollar)? The nominal interest rate is 8% compounded monthly. 2. $1000 accumulates to $1500 in 5 years time and the rate of inflation is 3% p.a. What is the annual...

Question