annual deposits beginning May 1 , 20 17 to a fund laying 8% interest annually. W
ID: 2594989 • Letter: A
Question
annual deposits beginning May 1 , 20 17 to a fund laying 8% interest annually. What is the required amount of each deposit? orman Company wishes to accunulate $1,000,000 by May I, 2025 by making 8 equl compounded Present Value of Future Valus of 7 periods 8 periods 9 periods A) $94,016 B) 587.051 C) $100,780 D) $174,016 5.2064 5.7466 6.2469 8.92280 10.63663 12.48756 19. If you invest S50.000 to earn 8% interest, which of the following compounding approaches would return the lowest amount afer one year? A) Quarterly. B) Daily Annually D) Monthly 20. Charlie Corp. is purchasing new equipment with a cash cost of $300,000 for an assembly line. The manufacturer has offered to accept S68,900 payment at the end of each of the next six years. How much interest will Charlie Corp. pay over the term of the loan? A) $113,400. B) $413,400. C) $68,900. D) $300,000 30 cu that they will need $200,000 in eighteen years. If they are able to earn 6% per annum, how much must be deposited at the beginning of each of the next eighteen years to fund the education? 21. Lucy and Fred want to begin saving for their baby's college education. They estimate 0$6,105 B) S11,110. C) $5,924. D) 56,470.Explanation / Answer
18) option A ($94016)
required amount/ future value ordinary annuty of 8 period
1000000/10.63663= 94016
19) option C ( Annuity )
acending order of hiegest return to lowest return
Daily-Monthly-Quarterly-Annualy
20) option A ($113400)
6*68900=413400
interest = 413400-300000=113400
21) option A ( $6105)
compunt valu at the end of year 18 @ $1 is 32.75999
so 200000/32.75999= 6105
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