7. An individual deposits an annual bonus into a savings account that pays 6% interest compounded annually. The size of the bonus increases by $5,000 each year, and the initial bonus amount was $20,000. Determine how much will be in the account immediately after the fifth deposit. 6 Click the icon to view the interest factors for discrete compounding when i= 6% per year. Immediately after the fifth deposit there will be $ thousand in the account. (Round to the nearest whole number.)
7. An individual deposits an annual bonus into a savings account that pays 6% interest compounded annually. The size of the bonus increases by $5,000 each year, and the initial bonus amount was $20,000. Determine how much will be in the account immediately after the fifth deposit. 6 Click the icon to view the interest factors for discrete compounding when i= 6% per year. Immediately after the fifth deposit there will be $ thousand in the account. (Round to the nearest whole number.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
7.
Transcribed Image Text:7. An individual deposits an annual bonus into a savings account that pays 6% interest compounded annually. The size of the bonus increases by $5,000 each year, and the initial
bonus amount was $20,000. Determine how much will be in the account immediately after the fifth deposit.
6 Click the icon to view the interest factors for discrete compounding when i= 6% per year.
Immediately after the fifth deposit there will be $
thousand in the account. (Round to the nearest whole number.)
6: More Info
Single Payment
Equal Payment Series
Gradient Series
Compound
Present
Compound
Sinking
Present
Capital
Gradient
Gradient
Amount
Worth
Amount
Fund
Worth
Recovery
Factor
(A/P, i, N)
Uniform
Present
Factor
Factor
Factor
Factor
Factor
Series
Worth
N
(F/P, i, N)
(P/F, i, N)
(F/A, i, N)
(A/F, i, N)
(P/A, i, N)
(A/G, i, N)
(P/G, i, N)
1
1.0600
0.9434
1.0000
1.0000
0.9434
1.0600
0.0000
0.0000
2
1.1236
0.8900
2.0600
0.4854
1.8334
0.5454
0.4854
0.8900
3
1.1910
0.8396
3.1836
0.3141
2.6730
0.3741
0.9612
2.5692
4
1.2625
0.7921
4.3746
0.2286
3.4651
0.2886
1.4272
4.9455
1.3382
0.7473
5.6371
0.1774
4.2124
0.2374
1.8836
7.9345
6.
1.4185
0.7050
6.9753
0.1434
4.9173
0.2034
2.3304
11.4594
7
1.5036
0.6651
8.3938
0.1191
5.5824
0.1791
2.7676
15.4497
8
1.5938
0.6274
9.8975
0.1010
6.2098
0.1610
3.1952
19.8416
1.6895
0.5919
11.4913
0.0870
6.8017
0.1470
3.6133
24.5768
10
1.7908
0.5584
13.1808
0.0759
7.3601
0.1359
4.0220
29.6023
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