You plan to deposit $100 at the end of every quarter (3 months) for 10 years starting at the end of month 1. Then after leaving the money in the account for several years, you plan to withdraw...


You plan to deposit $100 at the end of every quarter (3 months) for 10 years starting at the end of month 1.<br>Then after leaving the money in the account for several years, you plan to withdraw everything 20 years from today.<br>How much is available to withdraw at the end of year 20 if the account pays a nominal annual rate of 6% compounded monthly?<br>Question 4 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices.<br>Option A<br>Option B<br>F=?<br>F=?<br>120<br>1<br>120<br>240<br>240<br>i = 0.5%<br>i= 6%<br>A = 100<br>A = 100<br>Option C<br>Option D<br>F=?<br>F=?<br>10<br>10<br>20<br>20<br>i= 0.5%<br>i = 6%<br>A = 100<br>A = 100<br>Question 4 Part B: Identify the correct Function Notation for this scenario.<br>F = 100(P/A,0.5%,10)(P/F, 0.5%, 10)<br>O F = 100(F/A,6%,120)(P/F, 6%, 120)<br>O F = 100(F/A,0.5%,120)(F/P, 0.5%, 120)<br>F = 100(F/A,6%,10)(F/P, 6%, 10)<br>Question 4 Part C: Provide the final value for withdrawal at the end of year 20. Enter your answer in the form: 12345.67<br>Question 4 Part D: Choose the statement that is most correct for your answer to Part C.<br>O The amount found in part C will be available to withdraw at the end of year 20.<br>O The amount found in part C will be available to withdraw at the end of each month if the account pays a nominal annual rate of 6% compounded<br>monthly.<br>O The amount found in part C will be available to withdraw if the account pays a nominal annual rate of 6% compounded monthly.<br>O The amount found in part C will be available to withdraw at the end of year 20 if the account pays a nominal annual rate of 6% compounded<br>monthly.<br>

Extracted text: You plan to deposit $100 at the end of every quarter (3 months) for 10 years starting at the end of month 1. Then after leaving the money in the account for several years, you plan to withdraw everything 20 years from today. How much is available to withdraw at the end of year 20 if the account pays a nominal annual rate of 6% compounded monthly? Question 4 Part A: Choose the correct Cash Flow Diagram for this scenario from the following choices. Option A Option B F=? F=? 120 1 120 240 240 i = 0.5% i= 6% A = 100 A = 100 Option C Option D F=? F=? 10 10 20 20 i= 0.5% i = 6% A = 100 A = 100 Question 4 Part B: Identify the correct Function Notation for this scenario. F = 100(P/A,0.5%,10)(P/F, 0.5%, 10) O F = 100(F/A,6%,120)(P/F, 6%, 120) O F = 100(F/A,0.5%,120)(F/P, 0.5%, 120) F = 100(F/A,6%,10)(F/P, 6%, 10) Question 4 Part C: Provide the final value for withdrawal at the end of year 20. Enter your answer in the form: 12345.67 Question 4 Part D: Choose the statement that is most correct for your answer to Part C. O The amount found in part C will be available to withdraw at the end of year 20. O The amount found in part C will be available to withdraw at the end of each month if the account pays a nominal annual rate of 6% compounded monthly. O The amount found in part C will be available to withdraw if the account pays a nominal annual rate of 6% compounded monthly. O The amount found in part C will be available to withdraw at the end of year 20 if the account pays a nominal annual rate of 6% compounded monthly.
Jun 10, 2022
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