Question
Q1) Shelby set up a fund that would pay her family $3,500 at the beginning of every month, in perpetuity. What was the size of
Q1) Shelby set up a fund that would pay her family $3,500 at the beginning of every month, in perpetuity. What was the size of the investment in the fund if it was earning 3.00% compounded semi-annually?
Q2) Victoria invested her savings in a bank at 4.25% compounded quarterly. How much money did she invest to enable withdrawals of $4,000 at the beginning of every 6 months from the investment for 5 years, if the first withdrawal is to be made in 9 years?
Q3) A college plans to set up an endowment fund that will provide a scholarship of $3,500 at the end of every quarter, in perpetuity. How much should the college invest in the fund, if the fund earns 4.75% compounded quarterly?
Q4) How much would a business have to invest in a fund to receive $22,000 at the end of every month for 6 years? The fund has an interest rate of 5.50% compounded monthly and the first withdrawal is to be made in 4 years and 1 month.
Please show this question using formulas please. Like PV due or PV, FV due or FV.
I checked the other solutions it only shows Nper, Pmt (these type of workings) it does not help me at all.
Please help with these questions. Stuck on these!
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