KThe trustees of a college have accepted a gift of$100,000, but are required to deposit it in an accountpaying 8% per year, compounded semiannually. They maymake equal withdrawals at the end of each six-monthperiod, but the money must last 4 years. Find the amountof each withdrawal.The amount of each(Round your answer t

The semi-annual withdrawals are an annuity. Annuity is a series of fixed cash flows occurring at…

Answered: The trustees of a college have accepted…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
The trustees of a college have accepted a gift of $100000, but are required to deposit it in an account paying 8% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 4 years. a. Find the amount of each withdrawal. b. Find the amount of each withdrawal if the money must last 7 years.
The trustees of a college have accepted a gift of $175,000, but are required to deposit it in an account paying 10% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 7 years. (a) Find the amount of each withdrawal. (b) Find the amount of each withdrawal if the money must last 9 years. (a) The amount of each withdrawal is $ (Round your answer to the nearest cent.)
Ms Oksana Doe has just inherited an investment account worth $2,800,000 from her grandparents. The fund earns an annual interest rate of 6%. She plans to make uniform annual withdrawals from the account over the next 25 years. Answer the following two questions: 1. How much will each annual withdrawal be? OA. $223,160 OB. $47,320 OC. $50,960 OD. $232,120 OE. $218,960 2. What will be the balance in the account immediately after making the 8th annual withdrawal? OA. $1,359,698 OB. $1,048,320 OC. $2,294,110 O D. $2,431,991
Question:- How much can be paid in scholarship at the beginning of each month if $200000 is deposited in a trust fund if interest is 3.5% compounded monthly. The Amount that can be paid each month is $_______(round to six decimal places)
20.Mrs. Pineda is paying a P 3, 060 at the end of each 6 months as the premium on an endowment policy which will pay her P 20,000 at the end of 5 years. How much would she have if she deposits each payment in a savings account paying 3% compounded semi-annually? ( show your solution, submit to classwork) *
A college wants to provide students with a perpetual scholarship of $10,000 at the end of every 3 months. How large should their endowment fund be if invested at X% (choose the rate) compounded quarterly?
how much can we paid in scolarships at the end of half year if $90.000 is deposited in a trust fund if interest is 8.5% compounded semi-anually? the amount that can be paid each half-year is $_____
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.
Your employer contributes $500 per month, at the beginning of each month, to a retirement fund on your behalf. The contributions earn interest at a rate of 6% per year, compounded monthly. At the end of twenty years, what will be the balance of the fund? Group of answer choices $69,790 $232,175 $70,139 $220,713 $231,020
A trust notifies you that you are entitled a grant that would give you annual payments of $6,200 per year in perpetuity. The first payment will be made to you three years later (at the end of year 3). The annual interest rate is 10% (APR). What is the present value of the grant? A. 56,363.64 B. 46,581.52 C. 51,239.67 D. 62,000.00
A person sells some property She will be paid a lump sum of $80.000 in 4 years. Until then, the buyer pays 7% simple interest every quarter (a) Find the amount of each quarterly to payments to pay the sum. sets up a pays semiannually. amount of each payment into the fund (c) Complete the sinking fund table Click here to view page 1 of the sinking fund table Click here to view page 2 of the sinking fund table. (a) The simple interest payment is (Round to the nearest cent as needed.)

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The trustees of a college have accepted a gift of $100,000, but are required to deposit it in an account paying 8% per year, compounded semiannually. They may make equal withdrawals at the end of each six-month period, but the money must last 4 years. Find the amount of each withdrawal.