Question

You wish to have $400,000 at the end of twenty-five years. In the last ten years, you contribute $1,000 semi-annually at a rate of 5.8% compounded monthly. During the middle ten years, you withdraw $750 quarterly at a rate of 4.5% compounded annually. Given this information, determine the initial deposit that has to be made at the start of the first five years at a rate of 4% compounded monthly.

Answer #1

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You wish to have $200,000 at the end of twenty years. In the
last five years, you withdraw $1,000 annually at a rate of 3.8%
compounded quarterly. During the middle ten years, you contribute
$500 monthly at a rate of 2.8% compounded semi-annually. Given this
information, determine the initial deposit that has to be made at
the start of the first five years at a rate of 4% compounded
monthly.
The answer is $9,056.65. However, I don't know how they...

2. Dave’s dad is saving money for his
retirement. In the last five years; he invests $1,800 every 6
months in a mutual fund that pays 8% compounded semi-annually. Now,
the rate drops to 5.8% compounded quarterly and he wants to deposit
$1,200 every quarter for another five years. How much money will he
has at the end of ten years?

a) At the end of five years you wish to purchase a car for
$25,000. You can invest your money at the rate of 5% compounded
annually. How much money must you deposit in your investment
account today in order to have enough funds to purchase your car?
Interest rate - Actual amount of the deposit is: Number of periods
- Table used - Factor from table used -
b) You want to buy a business with an annual cash...

Calculate the accumulated value after ten years of payments of
$13200.00 made at the end of each month if interest is 4.5%
compounded semi-annually.

Fifteen years ago, you deposited $12,500 into an investment
fund. Five years ago, you added an additional $20,000 to that
account. You earned 8%, compounded semi-annually, for the first ten
years, and 6.5%, compounded annually, for the last five years.
Required:
a) What is the effective annual interest rate (EAR) you would
get for your investment in the first 10 years?
b) How much money do you have in your account today?
c) If you wish to have $85,000 now,...

How much money should be deposited annually in a bank account
for five years if you wish to withdraw $5,500 each year for three
years, beginning five years after the last deposit? The interest
rate is 5% per year.

How much money should be deposited annually in a bank account
for five years if you wish to withdraw $5,000 each year for three
years, beginning five years after the last deposit? The interest
rate is 3% per year

Fifteen years ago, you deposited $12,500 into an investment
fund. Five years ago, you added an additional $20,000 to that
account. You earned 8%, compounded semi-annually, for the first ten
years, and 6.5%, compounded annually, for the last five years.
Required: 1. a) What is the effective annual interest rate (EAR)
you would get for your investment in the first 10 years?
2. b) How much money do you have in your account today?
3. c) If you wish to...

You have $2,500 to deposit into a savings account. The five
banks in your area offer the following rates. In which bank should
you deposit your savings?
Bank B: 3.69%, compounded monthly
Bank A: 3.75%, compounded annually
Bank E; 3.65% compounded quarterly
Bank D: 3.67% compounded continuously
Bank C: 3.70% compounded semi-annually

You wish to deposit an amount now that will accumulate
to $100,000 in 10 years. How much less would you have to deposit if
the rate of interest was 8% compounded monthly versus
annually?

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