"Mia plans to make 27 annual contributions to a college saving account, with the first contribution to be made 1 year from today. There will be four annual withdrawals of $33735 starting at the end of year 24. Calculate the required size of the annual contributions if the interest rate is 5.91%." "1,961" 2,346 "2,552 1,895 "1,976

"Mia plans to make 27 annual contributions to a college saving account, with the first contribution to be made 1 year from today. There will be four annual withdrawals of $33735 starting at the end of year 24. Calculate the required size of the annual contributions if the interest rate is 5.91%." "1,961" 2,346 "2,552 1,895 "1,976

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

See similar textbooks

Similar questions

What sum of money should be set aside at a child's birth to provide for 8 semi- annual payments of $4000 to cover expenses for a university education. The first payment is to be made on the child's 18th birthday. The interest rate is 7% compounded semi-annually. 27495.82 28821.11 8248.34 7896.09
To help pay for an estimated $35000 in college expenses, parents make a deposit into a college fund at the beginning of each half-year over the course of 17 years. If this fund earns 6% interest, compounded semiannually, how large must these deposits be in order to pay for the estimated expenses? Round your answer to the nearest cent.
Answer the Situation below correctly show your complete solution. A deposit of 120 000.00 Php is placed into a college fund at the beginning of every month for 10 years . The fund earns 9 % annual interest , compounded monthly , and paid at the end of the month . How much is in the account right after the last deposit ? c . The number of conversion period is_____________________________.d . The interest rate per period is___________. e . The present value of the deposit is___________. (I just need the Solution) Answers: c. 12; d. 0.075; e. 30 000.00 Php
Set XYZ as the last three digits of your student number. Construct an amortization schedule for a XYZ,000 loan repaid in ten annual payments, in which the annual effective rate of interest is 5%. Construct a sinking fund schedule for item 3. The annual effective rate of interest is 5% for the loan and sinking fund.
1. Lovely Mae’s deposit of 100,000 is placed into a college fund at the beginning of every month for 10 years. The fund earns 9% annual interest, compounded monthly, and paid at the end of the month. How much is in her account right after the last deposit? Show solution.
Currently (in August, 2021), Abby wants to have $20,000 available in August 2025 to make a college tuition payment.To be able to have this amount available, Abby will make equal annual deposits in an investment account earning 12% annually in August 2021,2022,2023,2024, and 2025. What is the annual amount to be deposited? a.$5,548 b.$4,000 c.$3,148 d.$2,270
A college savings fund is opened with a $12,000 deposit. The account earns 6.55% annual interest compounded continuously. What will the value of the account be in 18 years? $26,704.29 $38,704.29 $27,013.46 $39,013.46 . By formula only please correct ans
A 10,000 loan is paid off over 10 years; interest is 6 percent effective. The borrower uses a sinking fund that pays 3 percent interest (effective) and makes yearly deposits into the fund (end of the year). Interest on the loan is charged yearly (end of the year). 14. What is the yearly deposit (sinking fund deposits and interest?) 15. a101.06&.03
On January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2018 and in 2019? Show Transcribed Text
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $ 2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 25 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25 The annuity will extend from the EOY 26 to the EOY 34 What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest annuity table for continuous compounding when i=8% per year
How much can be paid in scholarship at the beginning of each month if $231,500 is deposited in a trust fund if interest is 5.6% compounded monthly?
Many persons prepare for retirement by making monthly contributions to a savings program. Suppose that $2,500 is set aside each year and invested in a savings account that pays 8% interest per year, compounded continuously. a. Determine the accumulated savings in this account at the end of 29 years. b. In Part (a), suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 29. The annuity will extend from the EOY 30 to the EOY 36. What is the value of this annuity if the interest rate and compounding frequency in Part (a) do not change? Click the icon to view the interest and annuity table for continuous compounding when i=8% per year. a. The accumulated savings amount at the end of 29 years will be $275384. (Round to the nearest dollar.) b. The value of the annuity will be $41655. (Round to the nearest dollar.)