1. How much would be needed in a fund in order to pay out $2000 every two...
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1. How much would be needed in a fund in order to pay out $2000 every two years starting immediately if the fund has an annual effective interest rate of 5%.
2. Suppose we deposit $1000 at the beginning of each month for four years in a fund earning an annual effective rate of interest of 5%. The interest from this fund is paid out annually, and can only be reinvested at a nominal interest rate of 3% convertible quarterly. Find the accumulated value of our investments at the end of seven years and the yield rate for the entire seven-year period and the equivalent annual yield rate.
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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