Asif received a bonus of $10 000, which he immediately invested in a fund earning 9.25% compounded semi-annually through his Tax Free Savings Account. Five yea later, Asif plans to make the first semi-annual withdrawal of $1000. After how man withdrawals, the fund will be completely depleted?show the work
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- Ted Houser wishes to accumulate a fund of $40,000 for the purchase of a house and lot. He plans to deposit $4,000 semiannually at the end of each 6 months. Assuming interest at 14% a year compounded semiannually, how many deposits of $4,000 each will be required, and what is the amount of the last deposit?Jack Walter recognizes the value of saving part of his income. He has set a goal to have $15,000 in cash available for emergencies. Assume he invests semiannually to have $15,000 in five years and the sinking fund he has selected pays 8% annually, compounded semiannually. Find the total interest earned on the sinking fund using the given table. E Click the icon to view the table. The total interest earned will be S . (Round to the nearest cent as needed.)David wants to accumulate at least $40,000 by depositing $1,000 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does he need to make in order to reach his goal? Round to the next payment b. How long will it take David to reach his goal? year(s) month(s) Express the answer in years and months, rounded to the next payment period
- Allain Dupre wants to set up a scholarship fund for his school. The annual scholarship payment is to be $3,600 with the first such payment due two years after his deposit into the fund. If the fund pays 4.5%compounded annually , how much must Alain depositAlain Dupre wants to setup a scholarship fund for his school. The annual scholarship payment is to be $3500 with the first such payment due 4 years after his deposit into the fund. If the fund pays 9.2% compounded annually. How much most Alain deposit? He must deposit $___Jeffery Johnson is saving $1,450,000 per year in a savings account that is paying annual compound interest of 6%. He intends to continue this for three years after which he will move it to JMMB’s long term fund which pays interest of 8% per annum compounded semi-annually. i. How much would he be able to transfer to JMMB after 3 years? ii. How much money will he have at the end of 8 years from today?
- Jack Walter recognizes the value of saving part of his income. He has set a goal to have $30,000 in cash available for emergencies. How much should he invest semiannually to have $30,000 in five years if the sinking fund he has selected pays 6% annually, compounded semiannually?Troy Long wishes to deposit a single sum of money in a savings account so that five equal annual withdrawals of $2,000 can be made before depleting the fund. If the first withdrawal is to occur 1 year after the deposit and the fund pays interest at a rate of 5% compounded annually, how much should he deposit? suppose the first withdrawal does not occur until 3 years after the deposit. How much should be deposited?Hal wants to establish a savings fund from which a community organization could draw $890 a year for 20 years. If the account earns 2.5 percent annual interest, what amount does he have to deposit now to achieve this goal? Use Exhibit 1B-4. (Round time value factors to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Amount to be deposited $
- Mr. Deneau accumulated $98000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $5400 at the end of every three months from the fund. If interest is 4.1% compounded annually, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months).Johan recently received his annual performance bonus from his employer. He has set up an investment savings plan to which he will contribute $2000 each year from his bonus and $400 per month from his regular salary. Johan will make his initial contributions of $2000 and $400 today (Annuity due). Rounded to the nearest dollar, a) What will the plan be worth after 25 years if it earns 7.5% compunded monthly? b) How much did johans contributions earn during the 25 years? Solve using Financial CalculatorChelsea invested the profit of his business in an investment fund that was earning 2.50% compounded monthly. In 4 years, he began withdrawing $3,000 from this fund at the end of every 6 months. If the money in the fund lasted for the next 6 years, how much money did he initially invest in the fund? Please include a well-labelled timeline diagram. Full solutions should be shown on separate sheets of paper. Submit your solutions. $ Round to the nearest cent