14. John deposits $500 at the beginning of each year for 2 years into a fund...

14. John 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 John's pocket which will earn 0% interest. Calculate the accumulated value in all accounts after 10 years has passed.

Expert Solution

jeff jeffy answered 1 year ago

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

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.

Nataya makes monthly deposits into Fund A at the beginning of each month for 25 years....

Nataya makes monthly deposits into Fund A at the beginning of each month for 25 years. Her first deposit is $40, and each subsequent deposit increases by $10. Aarif contributes $250,000 once, today, into Fund B. The nominal rate that both of these funds earn is 6% per year. However, Fund A compounds interest monthly and Fund B compounds interest quarterly. What is the difference in the balance between these two funds at the end of 25 years?

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.

1.Deposits of $1000 are made at the beginning of each year for three years. The balance...

1.Deposits of $1000 are made at the beginning of each year for three years. The balance at the end of each year (before the deposit for the next year) was $1100, $2000, and $3400, respectively. Find the time-weighted yield rate. 2. A 10,000 par value 10-year bond with 8% annual coupons is bought at a premium to yield an annual effective rate of 6%. Calculate the interest portion of the 7th coupon.

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.

$2,000 are deposited into a fund at the beginning of each year for 20 years. Starting...

$2,000 are deposited into a fund at the beginning of each year for 20 years. Starting from the beginning of the 26th year, the balance can support annual payment D lasting forever. Find D if the nominal interest rate compounded continuously is 8%.

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.

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

Claude made annual deposits of $5900 at the beginning of every one-year period into a fund...

Claude made annual deposits of $5900 at the beginning of every one-year period into a fund earning 3.1% compounded annually for eight years. No further deposits were made.(a) How much will be in the account seventeen years after the first deposit? (b) How much in total was deposited? (c) How much interest will have been earned? a) The balance in the account seventeen years after the first deposit will be $____. (Round the final answer to the nearest cent as...

Question