{"id":6954,"date":"2021-10-11T15:33:37","date_gmt":"2021-10-11T15:33:37","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/wiseman-video-plans-to-make-four-annual-deposits-of-2000-each-to-a\/"},"modified":"2021-10-11T15:33:37","modified_gmt":"2021-10-11T15:33:37","slug":"wiseman-video-plans-to-make-four-annual-deposits-of-2000-each-to-a","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/wiseman-video-plans-to-make-four-annual-deposits-of-2000-each-to-a\/","title":{"rendered":"Wiseman video plans to make four annual deposits of $2,000 each to a"},"content":{"rendered":"
\n

6-5 Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund\u2019s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund\u2019s balance. Using the appropriate annuity table, determine how much will be accumulated in the fund on December 31, 2012,under each of the following situations:<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The first deposit is made on December 31, 2009, and interest is compounded annually.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The first deposit is made on December 31, 2008, and interest is compounded annually.<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The first deposit is made on December 31, 2008, and interest is compounded quarterly.<\/p>\n

4.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The first deposit is made on December 31, 2008, interest is compounded annually, and interest earned is withdrawn at the end of each year.<\/p>\n

6-6 Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2009, of a five-period annual annuity of $5,000 under each of the following situations:<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The first payment is received on December 31, 2010, and interest is compounded annually.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The first payment is received on December 31, 2009, and interest is compounded annually.<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The first payment is received on December 31, 2010, interest is compounded quarterly.<\/p>\n

6-10 Answer each of the following:<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000 cash immediately and a six-period annuity of $8,000 beginning one year from today or (3) a six period annuity of $13,000 beginning one year from today. Assuming an interest rate of 6%, which option should Alex choose?<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The Weirmer Corp wants to accumulate a sum of money to repay certain debts due on December 31, 2018. Weimer will make annual deposits of $100,000 into a special bank account at the end of each 10 years beginning December 31, 2009. Assuming the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2018?<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n

.<\/span><\/strong>\u00a0On exercise 6-5, what is the future value of an ordinary annuity in #1?<\/span> (Points: 4)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$2,557<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$9,559<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$4,779<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$2,000 <\/span><\/p>\n

8.<\/span><\/strong>\u00a0On exercise 6-5, what is the\u00a0total amount in #3?<\/span> (Points: 4)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$11,599<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$10,846<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$9,330<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$2,000 <\/span><\/p>\n

9.<\/span><\/strong>\u00a0On exercise 6-5, what is the\u00a0future value in #4?<\/span> (Points: 2)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$2,000<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$4,000<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$6,000<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$8,000 <\/span><\/p>\n

10.<\/span><\/strong>\u00a0On exercise 6-6, what is the present value in #1?<\/span> (Points: 2)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$18,024<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$17,400<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$3,605<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$5,000 <\/span><\/p>\n

11.<\/span><\/strong>\u00a0On exercise 6-6, what is the present value in #2?<\/span> (Points: 2)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$5,000<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$4,037<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$20,187<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$22,168 <\/span><\/p>\n

12.<\/span><\/strong>\u00a0In exercise 6-10, what is the present value of scenario 1 under #1?<\/span> (Points: 2)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$64,000<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$70,000<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$40,000<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$45,555 <\/span><\/p>\n

13.<\/span><\/strong>\u00a0In exercise 6-10, what is the present value of scenario\u00a02 under #1?<\/span> (Points: 2)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$33,669<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$20,000<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$59,339<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$10,000 <\/span><\/p>\n

14.<\/span><\/strong>\u00a0In exercise 6-10, what is the present value of scenario\u00a03 under #1? <\/span>(Points: 2)
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$42,123<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$63,925<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$75,679<\/span>
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 [removed]$40,224<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

6-5 Wiseman Video plans to make four annual deposits of $2,000 each to a special building fund. The fund\u2019s assets will be invested in mortgage instruments expected to pay interest at 12% on the fund\u2019s balance. Using the appropriate annuity table, determine how much will be accumulated in the fund on December 31, 2012,under each […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-6954","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6954","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=6954"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6954\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=6954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=6954"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=6954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}