A student saved $3,000 per year from 1986 to 2001 (15 years) in an account with 7% interest. He stopped depositing money after year 2001, but the money was kept in the same account earning interest. In 2007 he withdrew $15,000 for down payment toward purchase of a new house. In 2012 he received an inheritance as a single payment of $30,000, which he deposited in the same account. What is the current balance of the account (2021)?

A student saved $3,000 per year from 1986 to 2001 (15 years) in an account with 7% interest. He stopped depositing money after year 2001, but the money was kept in the same account earning interest. In 2007 he withdrew $15,000 for down payment toward purchase of a new house. In 2012 he received an inheritance as a single payment of $30,000, which he deposited in the same account. What is the current balance of the account (2021)?

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

This year (2022), Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $74,850 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,970 Cost of purchasing a delivery uniform 1,570 Cash contribution to State University deliveryman program 1,385 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's student loans this year. What is Evan's AGI? What is Evan's Taxable Income?
On January 1, 2006, a graduate student developed a 5-year financial plan which would provide enough money at the end of her graduate work (January 1, 2011) to open a business of her own. Her plan was to deposit $8,000 per year for 5 years, starting immediately, into an account paying 10 percent compounded annually. Her activities proceeded according to plan except that at the end of her third year (1/1/09) she withdrew $5,000 to take a Caribbean cruise, at the end of the fourth year (1/1/10) she withdrew $5,000 to buy a used Prelude, and at the end of the fifth year (1/1/11) she had to withdraw $5,000 to pay to have her dissertation typed. Her account, at the end of the fifth year, was less than the amount she had originally planned on by how much? Group of answer choices $15,373 $16,550 $32,290 $38,352 $13,975
Larry borrowed $1,000 through a loan shark, two years later he ended uppaying $1,500 to settle his debt. What was the interest rate on his loan?
3. Brittney won $765,000 in a lawsuit against MIT over theft of intellectual property. She and Santana decide to invest the money in a college fund for their 5-year-old daughter. How much will they have when their daughter is 18? Calculate the balance for each of the following account options: a. 4.36% APR interest compounded continuously b. 4.49% APR interest compounded quarterly c. 4.6% APR interest compounded yearly
This year (2022), Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $74,400 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,940 Cost of purchasing a delivery uniform 1,540 Cash contribution to State University deliveryman program 1,370 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's student loans this year.
5. Lamar has received $2,000 each year for college from his grandmother for the four years that he was in high school. He has deposited the money on the same day each year in an account that pays 8% interest, compounded annually. Complete the table below to determine how much money Lamar has saved. Amount of Beginning balance ($) deposited ($) balance ($) rate (%) Ending balance ($) Amount New Interest Year interest earned ($) $0 $2,000 $2,000 8% $160 $2,160 $2,160 $2,000 $4,160 8% $332.80 $4,492 $4,492 $2,000 $6,492 8% $519.36 $7,011 $7,011 $2,000 $9,011 8% $720 $9,731 4.
When Steven was 5 years old (on his birthday), his grandmother decided to set up a trust account to pay for his college education. She wanted the account to grow to $100,000 by his 18th birthday. If she was able to invest her money at 7% per year, how much did she have to deposit into this trust account? (Note: The amount deposited is known as the present value of the investment. The $100,000 is known as the future value. Round your answer to the nearest cent.)
Please help solve
When Joe graduated from college at age 22, his grandparents established a trust fund and endowed it with $10,000. The gift is intended to serve as a retirement fund for Joe, and he will be able to draw on it when he turns 62. If the fund earns a nine percent return over that period, what will it be worth when Joe reaches age 62? [submit your answer with a comma but no dollar signs]
Luoxana contributed $5,000.00 every year into an RRSP for 18 years. "What nominal annual rate of interest will the RRSP earn if the balance in Luoxana's account just after she made her last contribution was $195,000.00?
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?
* Your answer is incorrect. The Lahiri family rents a room in their home on Airbnb. They deposit all of the money that they earn into a vacation fund that earns 3% that is compounded annually. Their revenues for five years of their business are shown below. Year $ 1 2 3 4 5 Revenue $1,000 $850 $1,275 $1,800 $800 In year six, they did not rent their room due to extensive remodeling. How much would be in the account at the end of year 6? Click here to access the TVM Factor Table calculator. 5,114.36 Carry all interim calculations to 5 decimal places and then round your final answer to a whole number. The tolerance is ±5.

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