Question
Wiseman Video plans to make four annual deposits of $3,250 each to a special building fund. The funds assets will be invested in mortgage instruments
Wiseman Video plans to make four annual deposits of $3,250 each to a special building fund. The funds assets will be invested in mortgage instruments expected to pay interest at 12% on the funds balance. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) |
Using the appropriate annuity table, determine how much will be accumulated in the fund on December 31, 2019, under each of the following situations. |
1. | The first deposit is made on December 31, 2016, and interest is compounded annually. | ||||||||||||||
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2. | The first deposit is made on December 31, 2015, and interest is compounded annually. |
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3. | The first deposit is made on December 31, 2015, and interest is compounded quarterly. |
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4. | The first deposit is made on December 31, 2015, interest is compounded annually, and interest earned is withdrawn at the end of each year. | ||||||||||
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