What is the future value of 15 periodic payments of $35,000 each made at the end...

What is the future value of 15 periodic payments of $35,000 each made at the end of each period and compounded at 12%? Instead of investing the entire $3,000,000, Bogut invests $580,000 today and plans to make 9 equal annual investments into the fund beginning one year from today. What amount should the payments be to establish the $5,997,000 Tony the Tank Foundation at the end of 9 years? Adam Bryant invests $32,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Adam withdraws the accumulated amount of money, Compute the amount Adam would withdraw assuming the investment earns interest compounded semiannually.

Solutions

Expert Solution

Solution uploaded

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

What is the future value of 20 periodic payments of $4,000 each made at the beginning...

What is the future value of 20 periodic payments of $4,000 each made at the beginning of each period and compounded at 8%? Build an Excel worksheet to verify your calculation of #1. Show the calculation year by year (periodic amount, payment, balances etc.) Given the information of #1 above, how much you would have to save every year (period) if you want to have 2 million dollars of cash after 20 years (periods)

1- What is the future value of 15 deposits of $3,190 each made at the beginning...

1- What is the future value of 15 deposits of $3,190 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the 15th period.) The future value = 2- What is the present value of 6 receipts of $2,730 each received at the beginning of each period, discounted at 9% compounded interest? The present value = 3- What is the future value of 25 periodic payments of $5,440 each made at...

A 15-year annuity pays $1,500 per month, and payments are made at the end of each...

A 15-year annuity pays $1,500 per month, and payments are made at the end of each month. If the interest rate is 10 percent compounded monthly for the first seven years, and 6 percent compounded monthly thereafter, what is the present value of the annuity?

4) Determine the present value of $35,000 to be received at the end of each of...

4) Determine the present value of $35,000 to be received at the end of each of five years, using an interest rate of 5%, compounded annually, as follows: a) By successive computations, using the Present Value of $1 table below. You must show your work. b) By a single computation using the Present Value of an Annuity of $1 table below. You must show your work. Note: The two answers will not come out exactly the same, but should be...

Find the amount of each of 5 payments made at the end of each year into...

Find the amount of each of 5 payments made at the end of each year into a 6% rate sinking fund which produces $21,000 at the end of 5 years. A. $2,053.18 B. $3,514.46 C. $3,725.32 D. $4,200.00

A debt of $17500 is repaid by payments of $2850 made at the end of each...

A debt of $17500 is repaid by payments of $2850 made at the end of each year. Interest is 8% compounded semi-annually. a) How many payments are needed to repay the debt? b) What is the cost of the debt for the first three years? c) What is the principle repaid in the fifth year? d) Construct an amortization schedule showing details of the first three payments, the last three payments, and totals.

Assume the payments will be made at the end of each year (The first payment is...

Assume the payments will be made at the end of each year (The first payment is made on December 31, 2019.); recalculate your answer for case # 3. Calculate the annual payment required. Show your final answer and show all the work to support your answer. Prepare the amortization table for the loan using the format covered in class. Case #3 info: On January 1, 2019, ABC Corp. borrowed $81,000 by signing an installment loan. The loan will be repaid in 20...

Recall that an annuity is any sequence of equal periodic payments. If payments are made at...

Recall that an annuity is any sequence of equal periodic payments. If payments are made at the end of each time interval, then the annuity is called an ordinary annuity. We consider only ordinary annuities in this summer. The amount, or future value, of an annuity is the sum of all payments plus all interest earned. Suppose you decide to deposit $600 every 6 months into an account that pays 18% compounded semiannually. If you make eight deposits, one at...

Find the future value for each of the following scenarios, where m is the periodic deposit...

Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. compounding time future interest m r frequency in years value earned $450 4.1% annually 15 $ $ $425 6.9% semiannually 13 $ $ $350 6.5% quarterly 13 $ $ $100 6.4% monthly 6 $ $ $250 7.7% weekly 6 $ $

Find the future value for each of the following scenarios, where m is the periodic deposit...

Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. compounding time future interest m r frequency in years value earned $275 5.7% annually 9 $ $ $275 4.9% semiannually 11 $ $ $450 2.1% quarterly 14 $ $ $375 3.7% monthly 14 $ $ $200 7.5% weekly 8 $ $

Subjects