Question
In: Accounting
If a business manager deposits $60,000 in a bond fund at the end of each year...
If a business manager deposits $60,000 in a bond fund at the end of each year for twenty years, what will be the value of her investment:
a. At a compounded rate of 6 percent?
b. At a compounded rate of 4 percent? What would the outcome be in each case if the deposits were made at the beginning of each year?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Jake deposits 5000 at the end of each year in an investment fund earning an annual...
Jake deposits 5000 at the end of each year in an investment fund
earning an annual effective interest rate of 11.6%. The interest
from this investment fund is paid at the end of each year into a
savings account which earns an annual effective interest rate of
2.1%.
Find Jake's combined total accumulated value at the end of 16
years.
Jake deposits 5000 at the end of each year in an investment fund earning an annual...
Jake deposits 5000 at the end of each year in an investment fund
earning an annual effective interest rate of 11.6%. The interest
from this investment fund is paid at the end of each year into a
savings account which earns an annual effective interest rate of
2.1%.
Find Jake's combined total accumulated value at the end of 16
years.
Raj deposits 50 into a fund at the end of each month for 5 years. The...
Raj deposits 50 into a fund at the end of each month for 5
years. The fund pays interest at an annual effective rate of i. The
total amount of interest earned during the last month of year 5 is
13. Calculate the accumulated amount in Raj's account at the end of
year 5
A) 3325
B) 3350
C) 3375
D) 3400
E) 3425
John Decides to make 10 end-of year deposits of $10,000 into a fund starting one year...
John Decides to make 10 end-of year deposits of $10,000 into a
fund starting one year from now. He is planning to withdraw $20,000
each year for 5 years, starting one year after the last deposit.
The fund pays 8% per year compounded annually. Determine the
balance in the fund immediately after the last withdrawal.
Milo deposits $500 at the beginning of each year for 2 years into a fund that...
Milo deposits $500 at the beginning of each year for 2 years
into a fund that earns 8% annual effective. Half of the interest is
reinvested at 10% annual effective and the remaining half is
reinvested in Milo’s pocket (at 0%). Calculate the accumulated
value in all three accounts in 10 years.
No excel solution please
If a merchant deposits $ 1500 annually at the end of each fiscal year into a...
If
a merchant deposits $ 1500 annually at the end of each fiscal year
into a retirement account that pays interest at a rate of 8% per
year compounded annually, how much money will he have in his
account at the end of 25 years?
If a merchant deposits $ 1500 annually at the end of each fiscal year into a...
If a merchant deposits $ 1500 annually at the end of each fiscal
year into a retirement account that pays interest at the rate of 8%
per year compounded annually, how much money will he have in his
account at the end of 25 years?
Rachael deposits $3,600 into a retirement fund each year. The fund earns 7.5% annual interest....
Rachael deposits $3,600 into a retirement fund each year. The fund earns 7.5% annual interest, compounded monthly. If she opened her account when she was 20 years old, how much will she have by the time she’s 55? How much of that amount was interest earned?
If $60,000 is paid at the end of each year for 13 years, calculate the equivalent...
If $60,000 is paid at the end of each year for 13 years,
calculate the equivalent single payment now (P) if interest is 9%
pa effective. Give your answer in dollars and cents to the nearest
cent.
Bob deposits $11000 at the beginning of each year for six years in a fund earning...
Bob deposits $11000 at the beginning of each year for six years
in a fund earning an effective annual rate of 6.7%. The interest
from this fund can only be reinvested at an effective annual rate
of 2.1%. Find the accumulated value of Bob’s investment at the end
of thirteen years. Round your answer to the nearest cent.
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