Determine the accumulated value of fund y

Assignment Help Financial Management

Reference no: EM131913236

1500 is deposited into Fund X, which earns an annual effective rate of 7%. At the end of each year, the interest earned plus an additional 150 is withdrawn from the fund. At the end of the tenth year, the fund is depleted.

The annual withdrawals of interest and principal are deposited into Fund Y, which earns an annual effective rate of 8%. Determine the accumulated value of Fund Y at the end of year 10.

Reference no: EM131913236

Questions Cloud

What is the quarterly cost of capital for the building : The first quarterly cash flow is expected in 3 months from today. What is the expected quarterly cost of capital for the building?

Determine the payment to amortize the debt : The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 10 years.

Why should medal one accept the given special order : The Medal One Company manufactures medals for winners of athletic events. Why Should Medal One accept this special order? Show your calculations.

Monopoly on sales of a profitable product : What kinds of things would you do to protect it? Now assume that the market for your product suddenly becomes one of perfect competition.

Determine the accumulated value of fund y : The annual withdrawals of interest and principal are deposited into Fund Y, which earns an annual effective rate of 8%.

Learned from marketing research : If you think that a business is marketing to you, what information do you think that they learned from marketing research?

Balance sheet and the income statement : What balance sheet account provides the link between the balance sheet and the income statement? Briefly describe how this linkage works.

What rate of return did the original purchaser actually earn : A 15 year bond has a face value of $50000 and semi-annual coupons of $1250. find the purchase price if the buyer's annual rate of return is 0.054.

What is the future value of an annuity factor : If you deposit $9165 at the end of each of the next 8 years into an account paying 9 percent interest, what is the Future Value of an Annuity Factor?

User Account

All Pages