A financial adviser is reviewing one of her client's accounts. The client has been investing $1,000 at the end of every quarter for the past II years in a fund that has averaged 7.3% compounded quarterly. Using a cash flow diagram, how much money does the client have in his account?
Q: Jessica made equal deposits at the beginning of every 3 months into an RRSP. At the end of 8 years,…
A: Using excel PMT function
Q: A rich man put up a trust fund in the bank to give his son the earnings of P 400, 000 at the end of…
A: Trust fund can be defined as a legal entity that holds property or assets for a person or…
Q: Calculate the amount in the fund at the end of 3 years.
A: Time value of money means that the amount of money received in the present period will have more…
Q: Edward made equal deposits at the beginning of every 3 months into an RRSP. At the end of 6 years,…
A: Effective annual rate = (1 + Monthly interest rate)^12 - 1 = (1 + 3.75%/12)^12 - 1 =0.03815129256…
Q: Ali is making $1,000 monthly deposits into a fund that pays interest at a rate of 6% compounded…
A: Given: Monthly deposit = $1,000 Interest rate = 6% Years = 10
Q: McCarthy Construction is trying to bring the company-funded portion of its employee retirement fund…
A: Formula for calculating present worth:P=A11-1+g1+ini-gwhere,A1 is initial cashflown=no. of…
Q: Gagandeep has $9,540 in her Moosa investment account. Find the simple interest rate required for…
A: Interest means the extra amount which we received because of investment made and will be paid in…
Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years…
A: Amount = Principal (1+(rate/100))^n Initially, we deposit P 100,000 in a fund with a 25% annual…
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: interest dues on it. Three years from this withdrawal you start taking Php 20,000 per year out of…
A: Solution:- Calculation of Schedule of Investment fund ( Amount in Php) Year Opening balance…
Q: ) Betty Kay has a contract in which she will receive the following payment for the next 5 year:…
A: Present value of cash outflows needs to be compared with the present value of cash inflows. If the…
Q: Emile has deposited $100 at the start of each month to a savings fund for the last 3 ½ years. If the…
A: Monthly deposit = $ 100 Period = 3.50 Years = 3.5*12 = 42 Months Interest rate = 8% Quarterly…
Q: A person invested two amounts in a bank for a full year. From the first, the rate is 6% annually,…
A: Let the 1st amount be x and 2nd amount be y
Q: Sarah deposited $26,500 into a fund at the beginning of every quarter for 16 years. He then stopped…
A: Compound interest= p*(1+r%/n)^tn A.) Around $358903 stacked up at the end of 16th year.
Q: In this example, Daniel & Claire each deposited $10,000 in high interest savings accounts and each…
A: Interest Rate is the rate that is earned by the investor on deposits or paid by the borrower on…
Q: And this example Daniel and Claire are each deposited $10,000 in high interest savings account and…
A: The compound value of money can be depicted as the amount of interest generated on interest earned…
Q: Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate…
A: The question is based on the concept of present value and future value calculation of cash flow.…
Q: 2. At the end of each year, an investor deposits some money into a fund earning 7% interest. The…
A: When the certain amount of money is deposited at the regular interval over a period of time at a…
Q: Cecilia wants to pay for her daughter's college for four years by banking 20,000 dollars per year.…
A:
Q: On the first day of the year, a man deposits ₱1,000 in a bank at 8% per year compounded annually. He…
A: Total Deposits = ₱1,000 1st withdrawal =₱80 2nd Withdrawal = ₱90 3rd Withdrawal = Remaining Value…
Q: Shawn made equal deposits at the beginning of every 3 months into an RRSP. At the end of 10 years,…
A: Compounding of interest means, interest is received on principal as well as the earned interest…
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added…
A: Future Value is the value of current investments at a certain future date at the assumed…
Q: Irene makes five annual deposits of $3,000 in a savings account that pays interest at a rate of 4%…
A: Annual deposits = 3000 Interest Rate during first 7 years = 4% compounded quarterly
Q: Twelve years ago, you deposited $25,500 into an investment fund. Five years ago, you added an…
A: Given information: Deposited an amount of $25,500 for 12 years Additional $15,000 added into…
Q: For 13 years, Janet saved $250 at the beginning of every month in a fund that earned 4.5% compounded…
A: Compounding is a method of charging interest in which Interest is charged on the amount including…
Q: On January 1, 2005, a person’s savings account was worth $200,000. Every month thereafter, this…
A: Here, Worth of Saving Account on January 1, 2005 (PV) is $200,000 Cash Contribution Every month…
Q: A financial adviser is reviewing one of her client's accounts. The client has been investing $1,000…
A: Monthly investment = $1,000 Compounded = quarterly = 4 times in a year Interest rate = 7.3% Time…
Q: Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12…
A: Future value of annuity is regular deposit of fixed sum into a bank account, that will give certain…
Q: Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded…
A: When an amount is deposited in any account, it pays interest. A series of equal annual payments is…
Q: ennifer started to deposit ₱1,000 monthly in a fund that pays 6% compounded quarterly. How much will…
A: p Principal Amount (1000*3) 1000 i Interest rate per annum 6% i Quarterly interest (6%/4) 1.50%…
Q: 4) Ashley deposits $500 into an investment fund each January 1 starting in 2005 and continuing to…
A: Annual deposit from Jan 1 2005 = $ 500 Period from Jan1 2005 to Jan 2019 = 14 Years Number of annual…
Q: rest per year, and SOY Rural Bank pays 10% per year. If the total interest earned on the investment…
A: Ryan has invested in two different banks for the gain of interest income. The total investment is…
Q: mployee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly.…
A: The present worth of fund is the equivalent value of fund today considering time and interest rate…
Q: You just placed $3000 in a fund expected to earn 12% APR compounded monthly. At that rate, how many…
A: Amount placed now(PV) is $3000 Interest rate Compounded monthly is 12% Monthly interest rate is…
Q: Samantha invested $575 at the end of every month in an investment fund that was earning interest at…
A: Given data; payment amount = $575 rate of interest for 9 years = 4.2% compounding frequency =…
Q: Courtney invested the profit of his business in an investment fund tha was earning 2.25% compounded…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: is deposited each year into a bank account that pays 8% interest compounded quarterly how much would…
A: The future value of annuity includes the amount being deposited each year and the amount of interest…
Q: On the first day of the year, a man deposits ₱1,000 in a bank at 8% per year compounded annually.…
A: Future value at the end of one year = 1000 * 1.08 = 1080 amount remaining after he withdraws = 1080…
Q: Mary Stahley invested $3500 in a 48-month certificate of deposit (CD) that earned 9.5% annual simple…
A: Solution Concept Simple interest is calculated on the beginning principle and no interest is charged…
Q: Dr. Anderson plans to make a series of gradient-type withdrawals from her savings account over a…
A: Withdrawals start at end of year 2 Interest Rate = 9% First Withdrawal = 50,000 Annual Increase =…
Q: Trey invested $27,700 in a mutual fund at 4.1% compounded quarterly. After 2 years, the interest…
A: The company uses the futures value method for the purpose of calculating the value that is going to…
Q: nvested the profit of her business in an investment fund that was earning 2.25% compounded monthly.…
A: In this we need to find out the present value of all options.
Q: Garrett wants to accumulate at least $35,000 by depositing $1,5 month into a fund that earns…
A: Amount to be accumulated is $35000 Monthly deposit is $1500. Rate 4.5% compounded monthly
Q: On the first day of the year, a man deposits ₱1,000 in a bank at 8% per year compounded annually.…
A: Future Value Future value is the worth of any asset or any sum of money at a future date when such…
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…
A: Compounding interest rates are a concept of interest on interest where interest is reinvested rather…
Step by step
Solved in 2 steps with 2 images
- A father wants to set up a bank account that will pay his daughter $18,000 at the end-of-quarter (EOQ) 4 and $30,000 at EOQ 8. He will fund this account by making quarterly payments of $X from the present (time zero) through EOQ 7. a. Draw a cash-flow diagram from the father's viewpoint. b. If the quarterly percentage rate is (form number%), what is the value $X that must be deposited into the account?Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4. What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest? What is the present value of $1000 to be received in 4 years if the appropriate interest rate is 5%? We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount. For example, if a company's sales for 2020 is $1000 and expected to grow…There is an investor stating they will pay out $84,000 at the end of 4 years. In order to invest into the opportunity, you'll need to make a deposit of $10,000 to thier indicated bank account. What is the average annaul return rate. Use excel functions to indicate your steps.
- Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for: (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4.Answer the following questions by including the appropriate cash flow diagrams, solution, and final answer. 1. A father decides to establish a savings account for his child’s college education on the day his son is born. Any money put into the account will earn an interest rate of 10%. The father will make a series of annual deposits in equal amounts from the child's 1st birthday through the 18th birthday so the child can make four annual withdrawals from the account in the amount of Php 200,000 on each of his 18th, 19th, 20th, and 21st birthdays. Assuming that the first withdrawal will be made on the child’s 18th birthday, calculate the required 18 equal annual deposits.A civil engineer starts investing his money when he graduates from college. He is able to afford investing $10,000 a year from the time he graduates in four years until the end of eight years. He also plans to increase his investment an additional $2,500 per year increasing by $2,500 every year until year eight. Use the interest rate 10%. a. draw the cash flow diagrams for the above cash flows b. how much will the civil engineer have saved by the end of year eight c. what is its present worth on the year he started college
- Answer and draw neatly the necessary cash flow diagrams, and box your final answers. A student plans to deposit P1,500 in a bank now and another P3,000 for the next two years. If he plans to withdraw P5,000 three years after his deposit for the purpose of buying shoes. What will be the amount of money left in the bank one year after his withdrawal? Effective rate is 10%.Answer and draw neatly the necessary cash flow diagrams, and box your final answers. A young woman, 22 years old, has just graduated from college. She accepts a good job and desires to establish her own retirement fund. At the end of each year thereafter she plans to deposit P2,000 in a fund at 15% annual interest. How old will she be when the fund has an accumulated value of P1,000,000?You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for the four-year period? Answer to two decimals. O -1.45 -6.95 -11.92
- A woman went to the Beneficial Loan Company and borrowed S10,000. She must pay S323.53 At the end of each month for the next 60 months. A. What is the Monthly Interest rate she is paying? What is the Nominal Interest rate? С. What is the Effective Interest rate? Make your cash flow diagram and solve. B.A business man must fund an account for him to pay the maintenance of the building after it shut down in 10 years. The costs until the business shutdown is part of the operating cost of the business while the maintenance costs starts in 10 years at 23,000 annually. Draw the cash flow diagram and solve on how much money should be deposited if the fund earns an interest of 12 percent?Prepare a report showing cash flow diagram. At the end write a conclusion and your opinion to help your mother decide. Your mother plans to join the employee's cooperative. She wants to know how much her money would earn in six months. The cooperative reqires a monthly contribution of P1,000.00 starting June 2020, with a compounded interest rate of 3%. How much will your mother's money be by December 2020?