Question
Wiseman Video plans to make four annual deposits of $4,750 each to a special building fund. The funds assets will be invested in mortgage instruments
Wiseman Video plans to make four annual deposits of $4,750 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. |
table or calculator function: ? payment: ? n= ? i= ? fund balnance 12/31/2019: ? |
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. |
| Using the FV of $1 chart, calculate the fund balance: deposit date:.......i=.....n=.....Deposit.......Fund Balance 12/31/19 12/31/15........... ? ...... ?......$4750...................? 12/31/16 .............? ......?......4750....................? 12/31/17............. ?......?......4750.....................? 12/31/18............?......?........4750........................? |
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 | The first deposit is made on December 31, 2015, interest is compounded annually, and interest earned is withdrawn at the end of each year. Deposit amount: ?, No. of Payments: ?, Interest left in fund: ?, Fund balance 12/31/19: ? |
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