Question

What lump sum deposited today at 12% compounded quarterly for 10 years will yield the same final amount as deposits of $4000 at the end of each 6-month period for 10 years at 10% compounded semiannually?

Answer #1

We would be working on the present value of investments instead of the final amount ( both gives the same answers.) . The present value of the second investment mentioned above is computed here as:

Now the future value of above investment should be equal to the future value of the first investment, therefore we get here:

**Therefore $40546.38 is the required lump sum amount
here.**

What lump sum deposited today at 12% compounded quarterly for 5
years will yield the same final amount as deposits of $5000 at the
end of each 6-month period for 5 years at 8% compounded
semiannually?

What lump sum deposited today at 8% compounded quarterly for 5
years will yield the same final amount as deposits of $3000 at the
end of each 6-month period for 5 years at 4% compounded
semiannually?

What lump sum deposited today at 8 ?% compounded quarterly for
15 years will yield the same final amount as deposits of ?$6000 at
the end of each? 6-month period for 15 years at 8 ?% compounded?
semiannually?
The value of the lump sum is?

Find the least amount that could be deposited in a bank account
today at 10% compounded semiannually to allow $1875 withdrawals at
the end of each 6 months for 12 years. Round to the nearest
cent
A 26,426.14
B 25,872.45
C 49,127.55
D 25,291.07

What lump sum of money must be deposited into a bank account at
the present time so that $600 per month can be withdrawn for six
years, with the first withdrawal scheduled for seven years from
today? The interest rate is 1/2% per month. (Hint: Monthly
withdrawals begin at the end of the month 84.)

An account pays an annual rate of 8% percent compounded monthly.
What lump sum must you deposit into the account now so that in 10
years you can begin to withdraw $4000 each month for the next 20
years, drawing down the account to zero?

1. For the next 6 years, you pan to make equal quarterly
deposits of $600.00 into an account paying 8% compounded quarterly.
How much will be the total you have at the end of the time?
2. How much money will you have to deposit now if you wish to
have $5,000 at the end of 8 years. Interest is to be at the rate of
6% compounded semiannually?
3. In the California “Million Dollar Lottery” a winner is paid...

An investor needs $11 comma 000 in 12 years. (a) What amount
should be deposited in a fund at the end of each quarter at 5%
compounded quarterly so that there will be enough money in the
fund? (b) Find the investor's quarterly deposit if the money is
deposited at 7.8% compounded quarterly. Round both to the nearest
cent

What lump sum would you need to invest at 10.00% interest
compounded quarterly. so that your investment will be worth
$35,000.00 after the following lengths of time. Round your answers
to the nearest cent. You don't need to use commas to separate
thousands in your answer, but it won't hurt if you do.
10 quarters?
10 years?

What is the size of the payments that must be deposited at the
beginning of each 6-month period in an account that pays 8.2%,
compounded semiannually, so that the account will have a future
value of $170,000 at the end of 12 years? (Round your answer to the
nearest cent.)

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 25 minutes ago

asked 29 minutes ago

asked 29 minutes ago

asked 53 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

asked 1 hour ago

asked 2 hours ago