actice Problems for Exam 2 Help Save & Exis Ches 5 Exercise 6-7 Future value; an
ID: 2391664 • Letter: A
Question
actice Problems for Exam 2 Help Save & Exis Ches 5 Exercise 6-7 Future value; annuities [LO6-6 Wiseman Video plans to make four annual deposits of $6,000 each to a special building fund. The fund's assets will be invested in mortgage instruments expected to pay interest at 12% on the fund's balance. EOSI, P OSI. EVAoS·PVA0SL EVADofS1 and PVAD of $) (Use appropriate factor(s) from the tables provided.) 025405 Using the appropriate annuity table, determine how much will be accumulated in the fund on December 31, 2021, under each of the following situations. 1.The first deposit is made on December 31, 2018, and interest is compounded annually 2.The first deposit is made on December 31, 2017, and interest is compounded annually 3. The first deposit is made on December 31, 2017, and interest is compounded quarterty 4. The first deposit is made on December 31, 2017, interest is compounded annually, and interest earned is withdrawn at the end of each year Book int Complete this question by entering your answers in the tabs below rint Required 1 Required 2 Required 3 Required 4 The first deposit is made on December 31, 2018, and interest is compounded annually. (Round-your final answers to nearest whole dollar amount.) Table or caloulator function: Payment Fund balance 12/31/2021 Required 2>Explanation / Answer
a) The first deposit is made on December 31, 2018, and interest is compounded annually.
future value = Present value * (1+i)n
= 6000 * (1 + 0.12)3
= 8430
b) The first deposit is made on December 31, 2017, and interest is compounded annually.
c) The first deposit is made on December 31, 2017, and interest is compounded quarterly.
d) The first deposit is made on December 31, 2017, and interest is compounded annually, and interest earned is withdrawn at the end of each year
Table or calculator function: Payment: 6000 n = 3 i= 12% Fund balance 12/31/2021: 28676Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.