Pascal has recently opened an RRSP. He plans to deposit $ 965 at the end of every month for 20 years. The account will compound interest semi-annually at the nominal rate of 5.9 %. How much money will Pascal have in his account immediately after his last deposit? a. $ 410717.66 b. $ 410717.66 c. $ 454411.03 d. $ 436933.68 e. $ 410717.66

Pascal has recently opened an RRSP. He plans to deposit $ 965 at the end of every month for 20 years. The account will compound interest semi-annually at the nominal rate of 5.9 %. How much money will Pascal have in his account immediately after his last deposit? a. $ 410717.66 b. $ 410717.66 c. $ 454411.03 d. $ 436933.68 e. $ 410717.66

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 25P

See similar textbooks

Similar questions

You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Pascal has recently opened an RRSP. He plans to deposit $ 647 at the end of every month for 25 years. The account will compound interest semi-annually at the nominal rate of 6.7 %. How much money will Pascal have in his account immediately after his last deposit?a. $ 522341.09b.$ 492774.61c. $ 512485.60d.$ 532196.58e.$ 502630.10
Derek will deposit $1,169.00 per year into an account starting today and ending in year 5.00. The account that earns 7.00%. How much will be in the account 5.0 years from today?
You have decided to put $ 200 in a savings account on the first of every half-year for 10 years. The savings account credits interest semi-annually, at the annual rate of 6% . You wish to know how much money will you have in your account immediately after your last deposit. Find the number of payments per year. a. 1 b. 4 c. 12 d. 6 e. 2
4) Bill plans to deposit $200 into a bank account at the end of every month. The bank account has a nominal interest rate of 8 percent and interest is compounded monthly. How much will Bill have in the account at the end of 2½ years (30 months)?
8) Bozo the clown decides to start saving money. So, every month he deposits $200 into an account which pays4% monthly. If Bozo’s first deposit is on May 1, 2021, then how much is in the account immediately after hisdeposit on November 1, 2027? 9) You deposit $200 each month for five years. How much will be in the account after the five years if theinterest rate is 4% monthly? 10) An Elk, age 3, is given $400,000. (If a mouse can buy refrigerator, then an Elk can have $400,000.) Theamount is invested at 5% annually. If the Elk (His name is Ernie. You met Ernie in problem 6.) takes the moneyin five equal annual payments with the first in eight years (when Ernie is 11), then what is the size of eachpayment? 11) Max the mouse decides that he needs a new place to put his giant cheese refrigerator. So, Max purchases a lotfor $300,000. Max agrees to pay $25,000 dollars at the end of each year. If the interest rate is 4% compoundedannually, how many full payments must be made, and what…
Mr. Santos will deposit P10, 000 at the ABC bank at the end of each quarter for 2 years. If the bank gives out 9% compounded quarterly, find the amount to his credit just after the last deposit?
1. An investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end of thirty years? Rounded to 2 decimal places. 2. Your best friend Sam is in discussion with you about saving for his retirement. You are to advisehim on how much he should deposit annually to meet his retirement needs. Assume that he willdeposit a fixed annual amount for the next 20 years into a retirement savings account, startingone year from now. Sam has a son who will be attending college and plans to make 5 withdrawals(starting one year after making his final deposit into the retirement account) of $35,000 each topay for his annual tuition for the following 5 years. Commercial Banks will be paying 6 percenton such retirement accounts for the next 25 years. Kindly advise Sam on how much he shouldplace in the…
Pedro deposits four installments in his savings account as follows: BRL 2500 initial deposit (today); BRL 5000 after 3 months; BRL 9000 after 10 months; BRL 7000 after 16 months; Since all deadlines are related to the first deposit, calculate the balance at the time of the last deposit, since the rate is 2% per month. The balance on the last deposit will be R$ ?
David wants to accumulate at least $40,000 by depositing $1,000 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does he need to make in order to reach his goal? Round to the next payment b. How long will it take David to reach his goal? year(s) month(s) Express the answer in years and months, rounded to the next payment period