Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long c she need to wait? Joe deposits $8,000 right now and another $3,000 5 years from now. How much money will be in the account 12 years from now? Rate is 4% per year Joe (the same one above) deposits S8,000 now and withdraws $3,000 5 years from now. How much mor will be in the account 12 years from now? Jane deposits $2,500 into an account that earns 4.5% per year. 3 years later, the interest rate goes up to 6 How much money she will have 8 years after the initial investment? Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600 How much he should be ea ord this trin His han
Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long c she need to wait? Joe deposits $8,000 right now and another $3,000 5 years from now. How much money will be in the account 12 years from now? Rate is 4% per year Joe (the same one above) deposits S8,000 now and withdraws $3,000 5 years from now. How much mor will be in the account 12 years from now? Jane deposits $2,500 into an account that earns 4.5% per year. 3 years later, the interest rate goes up to 6 How much money she will have 8 years after the initial investment? Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600 How much he should be ea ord this trin His han
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![DRAW ALL CASH FLOW DIAGRAMS
1. Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long does
she need to wait?
2. Joe deposits S8,000 right now and another $3,000 5 years from now. How much money will be in the
account 12 years from now? Rate is 4% per year
3. Joe (the same one above) deposits $8,000 now and withdraws $3,000 5 years from now. How much money
will be in the account 12 years from now?
4. Jane deposits $2,500 into an account that carns 4.5% per year. 3 years later, the interest rate goes up to 6.5%
How much money she will have 8 years after the initial investment?
5. Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600.
How much he should be saving every year, including his senior year to be able to afford this trip. His bank
account earns 4.5% per year interest.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa5a7d11f-be23-48c1-9faa-5a9cdaf2800d%2Fa25fae4e-33cc-44ad-8676-cce34b4f0757%2F4lvvces_processed.jpeg&w=3840&q=75)
Transcribed Image Text:DRAW ALL CASH FLOW DIAGRAMS
1. Barbara wants to triple the money currently in her account that earns 3.5% per year interest. How long does
she need to wait?
2. Joe deposits S8,000 right now and another $3,000 5 years from now. How much money will be in the
account 12 years from now? Rate is 4% per year
3. Joe (the same one above) deposits $8,000 now and withdraws $3,000 5 years from now. How much money
will be in the account 12 years from now?
4. Jane deposits $2,500 into an account that carns 4.5% per year. 3 years later, the interest rate goes up to 6.5%
How much money she will have 8 years after the initial investment?
5. Tim starts his freshman year and would like to take a trip to Europe upon graduation that will cost $5,600.
How much he should be saving every year, including his senior year to be able to afford this trip. His bank
account earns 4.5% per year interest.
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