Computing Future and Present Value Under Different Investment Assumptions 1. If we invest $30,000 in an account
Fantastic news! We've Found the answer you've been seeking!
Question:
Computing Future and Present Value Under Different Investment Assumptions
1. If we invest $30,000 in an account at 4% interest compounded annually, | ||
what is the account balance at the end of five years? | ||
2. We wish to accumulate an investment fund of $120,000 at the end of six years | ||
by making a single deposit now. What amount must we deposit now assuming | ||
annual compounding of 6%? | ||
3. If we deposit $750,000 in an investment fund on January 1, which earns interest | ||
of 8% compounded annually, what annual payment can we withdraw each year over | ||
the next 20 years? Assume that our first withdrawal is at the end of the first year. | ||
4. If we make a payment of $1,725 each month starting today into a fund that earns 6%, | ||
how many months does it take to accumulate $100,000? Assume monthly | ||
compounding of interest. |
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date: