Question
In: Finance
Jack has saved $225 at the end of every month in his bankaccount for 6...
Jack has saved $225 at the end of every month in his bank account for 6 years with the rate of interest being 3.6% p.a. compounding monthly, then he decided to go to school for 5 years when he could not contribute to his account. After his studies ended (at the end of the 5th year at school), he moved his balance to another account and started to withdraw equal amounts of money from his account at the end of every quarter for 10 years. Find the size of his quarterly withdrawals if interest has been 4% p.a. compounding quarterly. Calculate the nominal rate of interest if a $20,000 investment has experienced 40% increase in value after 6 years when interest compounds monthly
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Jack has saved $225 at the end of every month in his bankaccount for 6...
Jack has saved $225 at the end of every month in his bank
account for 6 years with the rate of interest being 3.6% p.a.
compounding monthly, then he decided to go to school for 5 years
when he could not contribute to his account. After his studies
ended (at the end of the 5th year at school), he moved his balance
to another account and started to withdraw equal amounts of money
from his account at the end of...
`1- Liz saved $270 at the end of every month for 6 years in her bank...
`1-
Liz saved $270 at the end of every month for 6 years in her bank
account that earned 3.70% compounded monthly.
a. What is the accumulated value of her savings
at the end of the period?
a$21,393.49
b$21,729.45
c$196,528.63
d$2,289.45
b. What is the interest earned over the
period?
a$2,019.45
b$21,729.45
c$2,559.45
d$2,289.45
2-
What nominal interest rate compounded semi-annually is
equivalent to 3.63% compounded quarterly?
%
3-If Lionel wants to earn interest of $3,547.75 on his
$11,000.00 savings...
Lionel deposited $1,500 at the end of every month into an RRSP for 6 years. The...
Lionel deposited $1,500 at the end of every month into an RRSP
for 6 years. The interest rate earned was 3.75% compounded
semi-annually for the first 3 years and changed to 4.00% compounded
monthly for the next 3 years. What was the accumulated value of the
RRSP at the end of 6 years?
Round to the nearest cent
Ling has saved $73,700.00. If she decides to withdraw $2,819.00 at the beginning of every month...
Ling has saved $73,700.00. If she decides to withdraw $2,819.00
at the beginning of every month and interest is 11.25% compounded
quarterly, for how long can she makewithdrawals? Express your
answer in years and months (from 0 to 11 months).
Her last withdrawal will occur____ year(s) and____ month(s)
from now.
(Type whole numbers.)
Suppose you saved $483 at the end of each month for 37 years and your savings...
Suppose you saved $483 at the end of each month for 37 years and
your savings earned an interest rate of 3.5%. If instead you had
saved for only 11 years, how much would you have had to save each
month in order to reach the same final balance? Round to the
nearest cent.
If Haley invests $1,000 at the end of every month (EOM) for seven years in an...
If Haley invests $1,000 at the end of every month (EOM) for
seven years in an investment paying an annual rate of 10%
compounded monthly, how much will she have at the end of seven
years?
If Haley invests $1,000 at the beginning of every month (BOM)
for seven years in an investment paying an annual rate of 10%
compounded monthly, how much will she have at the end of seven
years?
George invested $1,250 at the end of every month into an investment fund that was earning...
George invested $1,250 at the end of every month into an
investment fund that was earning interest at 4.25% compounded
monthly. He stopped making regular deposits at the end of 9 years
when the interest rate changed to 4.50% compounded quarterly.
However, he let the money grow in this investment fund for the next
4 years.
a. Calculate the accumulated balance in his
investment fund at the end of 9 years
b. Calculate the accumulated balance in his
investment fund...
Bright Inc. will be receiving $5,500 at the end of every month for the next 4...
Bright Inc. will be receiving $5,500 at the end of every month
for the next 4 years. If these payments were directly invested into
a fund earning 7.00% compounded semi-annually, what would be the
future value of the fund at the end of 4 years?
Jennifer will need to pay $200 at the end of every month for the next 12...
Jennifer will need to pay $200 at the end of every month for the
next 12 months, except for the payment of the 5th month. What is
the present value, assuming a rate of 4%, compounded quarterly?
a.2,348.97
b.2,160.06
c.2,254.09
d.2,152.26
Jennifer will need to pay 200 at the end of every month for the next 12...
Jennifer will need to pay 200 at the end of every month for
the next 12 months, expect the payment of the 8th month. what is
the present value, assuming a rate of 4% compounded
quarterly?
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