Answered step by step
Verified Expert Solution
Question
1 Approved Answer
solve #3 please. or everything 1. Stone Inc. deposits $40,000 today into a special fund that is needed at the end of six years. A
solve #3 please. or everything
1. Stone Inc. deposits $40,000 today into a special fund that is needed at the end of six years. A financial insti. tution serves as the fund trustee and pays 10% interest on the fund balance. Compute the fund balance at the end of year 6 assuming annual compounding. 2. On January 15, 2020, Southwest Inc, adopts a plan to accumulate funds for environmental improvements on July 2. 2024. at an estimated cost of $2,000,000. Southwest plans to make four equal annual deposits in a fund that earns interest at 10% compounded annually. The first deposit is made on July 1, 2020. Compute the amount of the annual deposit. 3. Hanks Inc. establishes a debt retirement fund to retire debt of $72,820. Hanks makes three equal annual con- tributions of $20,000, starting on January 1, 2020. The fund eams interest at 10%, compounded annually. The $72.820 debt must be paid on December 31, 2022. What is the balance of the fund at the end of 2022? 4. Gold Inc. invests $10,000 today in a mutual fund. Gold anticipates leaving this fund alone for 12 years. The fund is increased each year-end by specified compound interest rates as follows: years 1 to 4 inclusive, 8%: 5 to 8 inclusive, 9%; and 9 to 12 inclusive, 10%. Compute the fund balance at the end of year 12 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started