What is the monthly payment that can be made

Reference no: EM13294522

A firm will set up a fund for retirees. A cash contribution will be made today, in the amount of $2,000,000, and will assume to earn interest at the rate of 8% per annum. The fund will disburse monthly for 12 years, and the desired cash balance at the end of 12 years is $1,000,000. What is the monthly payment that can be made from this fund?

Answer

a.
$12,132
b.
$24,266
c.
$17,599
d.
$17,491

Reference no: EM13294522

Questions Cloud

Determine the maximum theoretical rate at the information : An alphanumeric source is connected to voice-grade telephoneline with a useable bandwidth of 3000 Hz and SNR of 20 dB at theline output. Assume that the source has 128 equiprobable andstatistically independent characters. If the channel noise is w..

What is the cost of equity estimate according to the capm : Medical Associates is a large for-profit group practice. Its dividends are expected to grow at a constant rate of 7 percent per year into the foreseeable future. The firm's last dividend (D0) was $2, and its current stock price is $23.

What is the npv of an investment with an outlay today : What is the NPV of an investment with an outlay today of $300, followed by expected cash inflows of $200, $200 and $400, received at the end of years 1 through 3, respectively? Assume a discount rate of 9%.

With what speed does she exit the slide : A child slides down a playground slide; the coefficient of the kinetic friction is uk=0.15, with what speed does she exit the slide

What is the monthly payment that can be made : The fund will disburse monthly for 12 years, and the desired cash balance at the end of 12 years is $1,000,000. What is the monthly payment that can be made from this fund?

Define how many grams of nitrogen monoxide are present : When 37.2 L ammonia and 42.0 L oxygen gas at STP burn, nitrogen monoxide and water are produced. After the products return to STP, how many grams of nitrogen monoxide are present

Bicycle frames using two fiberglass materials : Applied Technology, Inc. (ATI) produces bicycle frames using two fiberglass materials that improve the strength-to-weight ratio of the frames. The cost of the standard grade material is $7.50 per yard and the cost of the professional grade mat..

Does the sequence converge in the mean square sense : Let Un be a sequence of iid zero-mean,unit-variance Gaussian random variables. A "low pass filter" takes the sequence Un and produces the sequence Xn =1/2 ( Un +Un-1) a.) Does this sequence converge in the mean square sense

Write the complete iupac name : Designate True (T) or False (F) for each of the following statements and a sample of an optically active substance that consists of a single enantiomer is said to have an enantiomeric excess of 100%.

User Account

All Pages