A 13-year-old child received an inheritance of $8000 per year. This was to be invested in allowed to accumulate until the child reach 21 years of age. The first payment was made on the child's 13th birthday and the last on the 21st birthday. If the money was invested at 5.3%, compounded annually, what did the child receive at age 21?

A 13-year-old child received an inheritance of $8000 per year. This was to be invested in allowed to accumulate until the child reach 21 years of age. The first payment was made on the child's 13th birthday and the last on the 21st birthday. If the money was invested at 5.3%, compounded annually, what did the child receive at age 21?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

A mother wants to insure the education of his son. On the 7th birthday of the son, he invest in a fund the amount of P 200,000.00 earning at 6.5% interest rate compounded monthly; on the 10th birthday another P 200,000.00 at an interest rate of 7.3% compounded monthly: on the 15th birthday another sum of money at 8% compounded monthly. If on the 18th birthday the son have a total withdrawable amount of P1.3M, how much is the 3rd investment?
hank deposits $100,000 into a retirement fund that earns 2.5% annual interest. When will his initial investment have doubled in value
Omar was given $1,000,000 on his 2nd birthday. The money is put into an account that pays 4% compounded annually. If he takes the money in 50 equal annual payments with the first when he turns 30 years old, then what is the size of each?
To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine years after, he deposited another 10,000. How much will be available at his retirement? *
Laura's parents invested $13,000.00 in a 14-year certificate for her that pays 6% compounded annual. How much is the certificate worth on Laura's 16 birthday if she started the account when she was 2 years old?
At age 60, a man established a trust fund of R20 000 which will pay his family a regular amount at the end of each month for 12 years after his death. If he dies at age 65, what monthly sum will the family receive if the fund earns 3% p.a. compounded monthly and if the first payment will be made 1 month after his death?
Parents wish to have 140,000 available for a child’s education. If the child is now 5 years old, how much money must be set aside at 7% compounded semiannually to meet their financial goal when the child is 18
Your rich uncle has recently passed away and left you an inheritance in the next 30 years. You will receive $2,000 per year from year 5 through year 10, $5,000 per year from year 11 through year 20, and $3,500 per year from year 21 to year 30. At a rate of 7 percent compounded annually, what is the present value of your uncle's generosity?
Mr. Cruz deposited P150, 000.00 now, so that his 2 years old daughter will receive 5 equal amounts of money yearly. Starting on her 17th birthday if money earns 12% compounded annually, how much will the girl receive yearly?
SOLVE TO HAND LEGIBLE; When a father dies, he leaves his children an inheritance of $3,000,000.00. When the father dies, his children are 5,8,9,12 and 15 years old. Each of the children must receive exactly the same amount of money when they turn 18. The money is deposited in a trust that pays 16% annually, convertible every 8 months: How much money will each of the children receive?
Don Jose deposited ₱5,000,000 on a bank that earns 10% compounded annually. Five years later he died. His will states that his beneficiary is an orphanage which will be receiving the money in perpetuity a year after he died. How much is the yearly fund the orphanage will be receiving?
On Sarah’s 18th birthday, she creates a trust fund to pay her a sequence of nine semiannual payments of 15,000; the first is due on her 23rd birthday. If the fund earns 6.5% compounded semiannually, find the present value of the deferred annuity.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS