Wiseman Video plans to make four annual deposits of $2,000 each to a special bui

Question

Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Using the appropriate annuity table, determine how much will be accumulated in the fund on December 31, 2016, under each of the following situations.

The first deposit is made on December 31, 2013, and interest is compounded annually. Table or caculator functionFVA $1

Payment = 2000 n=4 i=12% what is the fund balance 12/31/16?

2) The first deposit is made on Dec 31 2012 and interest compounded annually Tbale or Calculator FAVD $1 Same as above what is fund balance 12/31/16?

3) First deposit made 12/31/12 interest compounded quarterly. Using the FV of $ 1 calculate fund balance

12/31/12 i= n= deposit 2000 ?

12/31/13 i= n= deposit 2000?

12/31/14 i = n= deposit 2000 ?

12/31/15 1= n= deposit 2000 ?

Need to find i n and fund balance answers

Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund’s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund’s balance. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Using the appropriate annuity table, determine how much will be accumulated in the fund on December 31, 2016, under each of the following situations.

Explanation / Answer

1 First deposit made on 12/31/2013 $       2,000 n 4 i 12% 2000 x 4.7793 (From FVA Table) $ 9,558.60 2 First deposit made on 12/31/2012 $       2,000 n 4 i 12% 2000 x 5.3528 (From FVAD Table) $10,705.60 3 First deposit made on 12/31/2012 $       2,000 n $            -   i $            -   Balance on 12/31/2012 $       2,000 b First deposit made on 12/31/2012 $       2,000 n 4 i 3 Balance on 12/31/2013 = 2000 x 1.12551 4251.02 c First deposit made on 12/31/2012 $       2,000 n 8 i 3 Balance on 12/31/2014 = 4251.02 x 1.12551 7385.06 d First deposit made on 12/31/2012 $       2,000 n 12 i 3 Balance on 12/31/2015 = 7385.06 x 1.12551 11355.18 e First deposit made on 12/31/2012 $       2,000 n 16 i 3 Balance on 12/31/2016 = 7385.06 x 1.12551 16384.40

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