Question

6. Tom and Mary have saved $100,000 to finance their daughter Jenny’s college education. They deposited the money in the Arrowhead Savings and Loan Association, where it earns 5% interest compounded semiannually. What equal amounts can their daughter withdraw at the end of every 6 months during her 4 college years, without exhausting the fund?

**Instructions: use the Compound interest tables to
solve**

-Future value of 1 (future value of a single sum)

-Present value of 1 (present value of a single sum)

-Future value of an ordinary annuity of 1

-Present value of an ordinary annuity of 1

-Present value of an annuity Due of 1

Answer #1

Annuity payment= | P/ [ [1- (1+r)-n ]/r ] | |||

P= | Present value | 100,000.00 | ||

r= | Rate of interest per period | |||

Rate of interest per annum | 5.0% | |||

Payments per year | 2.00 | |||

Rate of interest per period | 2.500% | |||

n= | number of payments: | |||

Number of years | 4 | |||

Payments per year | 2.00 | |||

number of payments | 8 | |||

Annuity payment= | 100000/ [ (1- (1+0.025)^-8)/0.025 ] | |||

Annuity payment= | 13,946.73 |

Answer is $13,946.73

please rate.

Instructions: use the correct Compound interest table to
solve
-Future value of 1 (future value of a single sum)
-Present value of 1 (present value of a single sum)
-Future value of an ordinary annuity of 1
-Present value of an ordinary annuity of 1
-Present value of an annuity Due of 1
A. If $4,000 is deposited into an investment account yielding
10% every 6 months starting on 1/1/2018, what amount will be
available in the investment account in...

I am establishing a savings account paying 6% annual return to
fund a portion of my son’s college tuition. I want to make a
withdrawal of an equal amount from the savings at the end of each
of his first 4 years of college. I will have $24,256 in the savings
account when he begins college and will keep the account open for 4
years. Identify the details below that I need in order to determine
the dollar amount I...

I would like to retire in 2034 and to have a savings account
that allows me to withdraw $30,000 per year, at the end of each
year, beginning in 2034 and continuing through 2045. I found a fund
that earns 4% annual return. To develop the necessary savings for
my withdrawals, I intend to make equal deposits at the end of each
of the years 2021 through 2033.
Two required considerations:
FIRST: Identify the details below that I need in...

Coronado Altidore invested $9,500 at 6% annual interest, and
left the money invested without withdrawing any of the interest for
12 years. At the end of the 12 years, Coronado withdrew the
accumulated amount of money.
Click below to view the factor tables.
Table 1. Future Value of 1
Table 2. Future Value of an Annuity of 1
Table 3. Present Value of 1
Table 4. Present Value of an Annuity of 1
(For calculation purposes, use 5 decimal places...

On January 1 st 2012, Everhart Corporation, a calendar year
company
issues
$100,000, 5%, 5-year bonds dated January 1, 2012. The bond
pays
interest
semiannually on January 1 and July 1 . The bonds are issued
to yield 6%.
2.50%
3.00%
5.00%
6.00%
Present
value of a
single sum
for 5
periods
0.88385
0.86261
0.78353
0.74726
Present
value of a
single sum
for 10
periods
0.78120
0.74409
0.61391
0.55839
Present
value of an
annuity for
5 periods
4.64583
4.57971
4.32948...

Waterway Railroad Co. is about to issue $460,000 of 6-year bonds
paying an 7% interest rate, with interest payable semiannually. The
discount rate for such securities is 8%.
Click below to view the factor tables.
Table 1. Future Value of 1
Table 2. Future Value of an Annuity of 1
Table 3. Present Value of 1
Table 4. Present Value of an Annuity of 1
(For calculation purposes, use 5 decimal places as
displayed in the factor table provided.)
In...

1.Marigold Corp. will receive $1620000 in 6 years. If the
appropriate interest rate is 10%, the present value of the $1620000
receipt is
a.$907200.
b.$914441.
c.$2527200.
d.$2869927.
2.Vaughn Manufacturing will receive $790000 in a future year. If
the future receipt is discounted at an interest rate of 9%, its
present value is $432154. In how many years is the $790000
received?
a
6 years
b
8 years
c
7 years
d
9 years
Use the following 8% interest factors.
Present...

Example 1: Future Value (FV) of a Present Single
Sum
Your client
has $500,000 in an IRA and has asked you to estimate
its value
when the client reaches retirement age in 8 years, assuming
a 6% return each year.
Example 2: Future Value (FV) of a present single Sum
with
Multiple Interest Rates
Same facts
as Example 1 except the client would like to adjust the
asset
allocation of the investments over time, evolving from a
more
aggressive strategy...

1. A 6?-month ?$9000 Treasury bill with discount rate 8.671?%
was sold in 2009. Find a. the price of the?
T-bill, and b. the actual interest rate paid by
the Treasury.
a. The price of the? T-bill is ?$
?(Round to the nearest dollar as? needed.)
2. Suppose that ?$30,000 is invested at 7?% interest. Find the
amount of money in the account after 8 years if the interest is
compounded annually.
If interest is compounded? annually, what is the...

Lauren is the proud mother of a new baby girl and plans to send
her daughter to college 19 years from now. Lauren wants to make a
deposit each summer in a special account at her bank which pays 10%
(compounded annually) so that she will have enough money set aside
that she can withdraw $20,000 at the beginning of each year to pay
tuition, room and board, etc., for each year of her four-year
education. How much will Lauren...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 7 minutes ago

asked 11 minutes ago

asked 24 minutes ago

asked 31 minutes ago

asked 37 minutes ago

asked 43 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago