a mother earned $15000.00 from royalties on her cookbook. She set aside 20% of this for a down payment for a new home. The balance will be used for her son's future education. She invested a portion of the money in a bank certificate of a deposit (cd account) that earns 4% and the remainder in a savings bond that earns 7%. IF the total interest earned after one year is $720.00, how much money was invested at each rate?

Q: At the time of her grandsons birth, a grandmother deposits 8,000 in an account that pays 2%…

A: Given, PV=Deposits= $8000   Rate(r)=6.5% (compounded monthly) Monthly rate=2%12=0.001667 No. of…

Q: At the time of her grandson's birth, a grandmother deposits $9000 in an account that pays 8%…

A: We will use the below formula to calculate the future value   Future value = PV*(1+r)n Where PV -…

Q: A father is planning a savings program to put his daughter through college. His daughter is now 13…

A: Annuity payment Annuity payments are money invested or deposited on a regular interval such as…

Q: A man deposited $10,000 in a savings account when his son was born. The nominal interest rate was 8%…

A: The future value t is the estimated value of the deposit on a future date with an estimated interest…

Q: how much money was invested in the CD​ account?

A: Solution:- Lets assume that the amount of money invested in CD account is x which makes the amount…

Q: Your grandmother deposited $10,000 in an investment account on the day you were born to help pay…

A: Solution:- An amount deposited today somewhere earns interest. The amount invested in beginning is…

Q: On the day his son was born, a father deposited to a trust company a sufficient amount of money so…

A: We can define effective interest rate as that rate which we will receive from investing our amount…

Q: Charlotte wishes to accumulate $100,000 in a savings account in 10 years. If she wishes to make a…

A: Present value indicates the current value of a future earning or sum incurred in the future years…

Q: The Clark family began savings for their child's college 17 years ago. Each year they contributed…

A: The future value refers to the future value of all cash flows compounded at interest rate for the…

Q: At the time of her grandson's birth, a grandmother deposits $9000 in an account that pays 8%…

A: Effective annual rate is the actual rate of return earned on the investment, after considering the…

Q: you want to establish a perpetuity that pays $6500 per year. Your banker will establish such an…

A: Solution:Perpetuity refers to the equal cash flow per period forever.We know, value of perpetuity =…

Q: a. A friend of yours, Grace, wants to purchase a house in five years. To save for the house, Grace…

A: According to the given question, we need to compute the figures asked in the questions, We can solve…

Q: Ann's grandmother put some money in an account for her on the day she was born. She is now 18 years…

A: Given information: Present value amount is Ksh 400,000 Interest rate is 8% per annum, Present age is…

Q: A mother wants to invests 9,000.00 for her sons future education she invests a portion of the money…

A: Solution:- Interest is the return amount on money invested.

Q: A woman deposits $8000 at the end of each year for 13 years in an acc (a) Find the final amount she…

A: Accrued amount refers to the compile sum of income, interest and all the desired expenses that needs…

Q: At the time of her grandson's birth, a grandmother deposits $12,000 in an account that pays 3.5%…

A: Amount deposited =$12,000 Interest rate = 3.5/12 = 0.21666667% Years = 21 Terms of compounding =…

Q: At the time of her grandson's birth, a grandmother deposits $4000 in an account that pays 4%…

A: FUTURE VALUE  Future Value is Value of Current Sum of Money at any Future Date. Future Value is…

Q: A mother earned $18750.00 from royalties on her cookbook. She set aside 20% of this for a down…

A: The interest earned from all the categories of investment that a single investor has made is known…

Q: e has $1,500 in credit card debt but pays it in full every month from cash flow. He also pays her…

A: Net worth is amount of ownership or may say equity and increase in net worth means how much is…

Q: Your sister placed her graduation gifts amounting to P25,000 in a special savings account that…

A: Principal amount (P)= P25,000 Interest rate (R)= 2% Time period (T)= 8 months= 8/12= 0.67

Q: On a boy's seventh birthday, his parents deposited 5,000 in his name in a savings bank paying 2%…

A: Deposit amount (PV) = 5000 Quarterly interest rate (r) = 2% Period from 7th birthday to 21 days  =…

Q: You discover a savings account belonging to your great-grandmother. It has been earning 1¾% annually…

A: Final value or value at the end of 50 years = $35712 Rate of return = 1 3/4% = 1.75% or 0.0175…

Q: Stella deposits $54,000 in a savings account at a bank that offers interest of 5.3% on such…

A: The objective of the question is to calculate the future value of Stella's savings account after…

Q: Heather deposited $1, 700 at her local credit union in a savings account at the rate of 9.8% paid as…

A: The objective of the question is to calculate the total amount of money that the credit union would…

Q: John won a lottery. After taxes, he was able to take home his winnings worth $510000. He decides to…

A: We need to use compound interest formula to solve this problem A=P(1+i)n Where A=Future amount P=…

Q: Grandma Patt has decided to open a savings account for her newborn granddaughter.  The savings…

A: The present value of money is the equivalent value of money today that is going to be received in…

Q: ne has just graduated from high school and has received an award for $5,000. She would like to…

A: The compounding increase the effective interest on the and more compounding increases future value…

Q: From age 20 to 35, Susan deposits $350 semi-annually in a savings account paying 6.12% compounded…

A: Time value of money concept is used to determine the worth of money today is different from that in…