Question
In: Finance
Nemo deposits $7500 now, $5000 three years from now, and $1500 six years from now into...
Nemo deposits $7500 now, $5000 three years from now, and $1500 six years from now
into a fund paying 8% compounded quarterly: What equal deposit of size A, made every 3
months (with the first deposit at t=0 and last deposit at the end of the 7th year) are equal to the 3 deposits?
Solutions
Expert Solution
Use spreadsheet for the required computations. Enter values and formulas in the spreadsheet as shown in the image below.
The obtained result is provided below.
Thus, required quarterly savings will be $581.50.
jeff jeffy answered 2 years agoRelated Solutions
If Tony deposits $1,000 three years from now and then increases the deposit by $500 each...
If Tony deposits $1,000 three years from now and then increases
the deposit by $500 each year through year 10, calculate the amount
that will be in the account in year 10 at an interest rate of 10%
per year.
Jimmy deposits : $ 4,200 - now, $ 2,100 - 3 years from now, and $...
Jimmy deposits :
$ 4,200 - now,
$ 2,100 - 3 years from now, and
$ 4,200 - 6 years from now.
Interest is 3 % for the first 3 years and 11 % for the last 3
years.
What is the uniform series equivalent of the fund (uniform cash
flow at end of years 1–6)?
(Hint : Incorrect Answer = $3456)
Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6 years from now. Interest...
Jimmy deposits $4,000 now, $2,500 3 years from now, and $5,000 6
years from now. Interest is 5% for the first 3 years and 7% for the
last 3 years.
a) What is the uniform series equivalent of the fund (uniform
cash flow at end of years 1 through 6)?
Company A deposit $10,000 now in the bank. Company A will keep deposits $1500 at the...
Company A deposit $10,000 now in the bank. Company A will keep
deposits $1500 at the end of each payment period. The interest rate
and the payment period information are given in the following
table. How much will the company have after 5 years in the bank
account? Assume each year contains 52 weeks/365 days, each quarter
contains 13 weeks/90 days, each month contains 4 weeks/30 days.
$1500 will be paid... (PP)
Rate is 12 % per year with the...
Company A deposit $10,000 now in the bank. Company A will keep deposits $1500 at the...
Company A deposit $10,000 now in the bank. Company A will keep
deposits $1500 at the end of each payment period. The interest rate
and the payment period information are given in the following
table.How much will the company have after 5 years in the bank
account? Assume each year contains 52 weeks/365 days, each quarter
contains 13 weeks/90 days, each month contains 4 weeks/30 days.
$1500 will be paid... (PP)
Rate is 12 % per year with the compounding...
What future amount of money will be accumulated 10 years from now by investing $1500 now...
What future amount of money will be accumulated 10 years from
now by investing $1500 now plus $5500 4 years from now at 6%
interest compounded semi-annually?
An individual makes six annual deposits in a savings account starting one year from now that...
An
individual makes six annual deposits in a savings account starting
one year from now that pays interest at a rate of 10% compounded
quarterly. Ten years after the last deposit, a withdrawal of
$10,000 per year for 10 years is withdrawn from the account. How
much would be the six annual deposits? Solve step by step and draw
cash flow diagram.
Suppose you make deposits of $410 at the end of every three months for six years...
Suppose you make deposits of $410 at the end of
every three months for six years into an account earning 2.09%2.09%
compounded quarterly. After these six years you
leave the money in the account, without making additional deposits
for another thirteen years invested at the
same interest rate of 2.09%2.09% compounded
quarterly.
How much will you have in the account after the first six
years? (Round to the nearest cent.)
N = I/Y = % P/Y = C/Y =
PV = $...
John deposits $5000 into a bank for 5 years. (a) If he chooses simple interest at...
John deposits $5000 into a bank for 5 years.
(a) If he chooses simple interest at 6% annually. How much he
will have when the term ends?How much interest he has earned?
(b) If he chooses compounded interest at 5% annually. How much
he will have when the term ends? How much interest he has
earned?
How much money would be accumulated 18 years from now from deposits of $10,000 per year...
How much money would be accumulated 18 years from now from
deposits of $10,000 per year for 5 consecutive years, starting 5
years from now, if the interest rate is 9% per year?
The amount that would be accumulated is?
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