Question
1.MichaelJackson invests $32,500at10% annual interest, leaving the money invested without withdrawing any of the interest for10years. At the end of the10years,Michaelwithdraws the accumulated amount of
1.MichaelJackson invests $32,500at10% annual interest, leaving the money invested without withdrawing any of the interest for10years. At the end of the10years,Michaelwithdraws the accumulated amount of money.
Compute the amountMichaelwould withdraw assuming the investment earns interest compounded semiannually.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
2.What is the future value of17periodic payments of $7,160each made at the end of each period and compounded at10%?(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
3.What is the future value of17deposits of $3,500each made at the beginning of each period and compounded at10%? (Future value as of the end of the17thperiod.)(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
4.MontyCorporation, having recently issued a $20,134,100,15-year bond issue, is committed to make annual sinking fund deposits of $613,500. The deposits are made on the last day of each year and yield a return of10%.
Determine the amount of deficiency.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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