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PROBLEM SITUATION:
-
An employee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. Employee’s monthly salary is ₱70,000 and decided to invest 10% of her salary per month in the fund for 4 years. On the 5th year, the employee got promoted and her salary was increased to ₱100,000. She continued to invest the same percentage of her salary to the fund for 7 more years until she retires.
QUESTION:
- What will be the interest rate per interest period if convert to compounding monthly?
|
1.9967% |
||
|
0.0166442% |
||
|
2.0151% |
||
|
0.166389% |
Step by step
Solved in 2 steps
- Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of 50 (1 payment at the end of each of the next 4 years) plus an extra payment of 1,000 at the end of Year 4. Your friend says she can get you some of these securities at a cost of 900 each. Your money is now invested in a bank that pays an 8% nominal (quoted) interest rate but with quarterly compounding. You regard the securities as being just as safe, and as liquid, as your bank deposit, so your required effective annual rate of return on the securities is the same as that on your bank deposit. You must calculate the value of the securities to decide whether they are a good investment. What is their present value to you?Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her retirement time. She deposits RM4,800 each year in the investment that give 6% until her retirement day. Kindly explain to Ms. Lee on the reasons why she needs to prepare and organize her financial record.An employee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. Employee’s monthly salary is ₱70,000 and decided to invest 10% of her salary per month in the fund for 4 years. On the 5th year, the employee got promoted and her salary was increased to ₱100,000. She continued to invest the same percentage of her salary to the fund for 7 more years until she retires. QUESTION: What is the present worth of the entire fund? Choices₱1,106,007.35 ₱1,045,926.03 ₱1,003,908.99 ₱951,658.58
- 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.)An employee decided to invest in a trust fund which gives an interest rate of 2% compounded quarterly. Employee’s monthly salary is ₱70,000 and decided to invest 10% of her salary per month in the fund for 4 years. On the 5th year, the employee got promoted and her salary was increased to ₱100,000. She continued to invest the same percentage of her salary to the fund for 7 more years until she retires. QUESTION: What will be the interest rate per interest period if convert to compounding monthly? 1.9967% 0.0166442% 2.0151% 0.166389%5. A man decided to sell his farm and to deposit the fund in a bank. After computing the interest, they learned that they may be withdraw Php180,000 semi annually for 11 years starting at the end of 7 years when it is time for him to retire. How much is the fund deposited if the interest rate is 5% converted semi annually?
- A new employee puts 4% of his salary of $65,000 into a retirement account, and his employer matches this, also putting 3% into the account. The money is invested in a diversified stock fund. His salary increases 2.5% per year. (a) What is the value of the account after 10 years? (b) What is the value of the employer’s matching funds? (c) How much will be in the account after 40 years?A young woman 22 years old has just graduated from college. She accepts a good job and desire to establish her own retirement fund. At the beginning of each year thereafter she plans to deposit P 2,000 in a fund at 15% annual interest. How old will she be when the fund has an accumulated value of P 1,000,000. 52 53 31 30Jin decided to sell their farm and to deposit the fund in a bank. After computing the interest, they learned that they may withdraw P480,000.00 arly for 8 years starting at the end of 6 years when it is time for him to retire. How much is the fund deposited if the interest rate is 5% converted annually?
- A mother wants to invests 9,000.00 for her sons future education she invests a portion of the money in the bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is 540.00 how much money was invested in the CD accA mother wants to invest $8 comma 000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $ 480.00 comma how much money was invested in the CD account? The total interest earned after one year is $480.00 . How much money was invested in the CD account?A young student 22 years old has just graduated from college. She accepts a good job and desires to establish her own retirement fund. At the end of each year thereafter she plans to deposit P2,000 in a fund at 15% annual interest. How old will she be when the fund has an accumulated value of P1,000,000?
