50.1K

Verified Solution

Link Copied!

Required: For each of the following questions please use the Future/Present Value tables in the text showing your calculations. Feel free to check results with a financial calculator or one of the many on-line sites. You must show calculations to get full credit. I. The ABC Company wishes to retire a $7,000,000 bond 10 years from now. What single deposit should they make in the bank today in order to retire the bond if they can earn 8% annually on its 2. Same question as above, what is ABC can earn 8% annual interest but the bank offers semi- annual compounding of interest. 3. Jose is saving for his college education. He decides to deposit S16,000 at the end of each year for a 7 year period earning an annual interest rate of 9% per year. He will need $145,000 for his tuition when he begins school in 7 years. Will he have enough? What will be the shortfall or excess amount? 4. Sam would like to retire. He wants to withdraw S27,000 at the end of each for the next 15 years, after which he assumes that he will have left this earth. How much must Sam have in his retirement account at the time he retires if he is able to earn 6% on his retirement fund? 5. Sam as question # 4 above, but Sam now wishes to withdraw the initial payment of the 1st day of the year instead of the last day 6. Morgan decides to deposit a S14,000 gift from her grandmother into the bank. She will earn 8% annual interest compounded quarterly. How much money will Morgan have 10 years from now

Answer & Explanation Solved by verified expert

See Answer