Fatzamatah is a simple person, so he only invests in simple interest accounts. At the end of 10 years he wants to have $50,000 in his bank account. He can get an annual interest rate of 5% from the bank for 10 years. How much money (Principal) must he put down (at t = 0) to accrue a future value of $50000 in 10 years? Calculate his net earnings (I) over the 10 years.

Fatzamatah is a simple person, so he only invests in simple interest accounts. At the end of 10 years he wants to have $50,000 in his bank account. He can get an annual interest rate of 5% from the bank for 10 years. How much money (Principal) must he put down (at t = 0) to accrue a future value of $50000 in 10 years? Calculate his net earnings (I) over the 10 years.

Algebra and Trigonometry (6th Edition)

6th Edition

ISBN:9780134463216

Author:Robert F. Blitzer

Publisher:Robert F. Blitzer

ChapterP: Prerequisites: Fundamental Concepts Of Algebra

Section: Chapter Questions

Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...

See similar textbooks

Similar questions

Find the saving balance after 15 years with an APR of 3.2% and monthly payments of $200
Suppose you invest $150 a month for 3 years into an account earning 9% compounded monthly. After 3 years, you leave the money, without making additional deposits, in the account for another 30 years. How much will you have in the end?
You want to have a $50,000 college fund in 12 years. How much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit. An APR of 5% compounded daily. You should invest $nothing.
Suppose that you have $9000 to invest into an account that pays interest at a rate of 1.95%. Find the future value (rounded to the nearest cent) of the account after 8 years if the account compounds interest: yearly: FV = $ Semi-annually: FV = $ Quarterly: FV = $ Monthly: FV = $ weekly: FV = $ daily: FV = $ hourly: FV = $ please show steps. Thank you
You want to go on a world holiday in 10 years time. You work out you need $80,000 for your holiday. So you start saving every month at the end of the month and you get 5% per year compound monthly interest. For the first 5 years you save $800 a month but things go wrong after 5 years and you can only save $200 a month. After 10 years has he saved enough money or does he need to get more money?
You have $10,000 you want to invest. Your bank has several investment accounts tochoose from, all compounding daily. Your goal is to have $15,000 in 6 years. To thenearest hundredth of a percent, what is the minimum annual interest rate the account must have so you can reach your goal?
As a fringe benefit for the past 8 years, Colin's employer has contributed $50 at the end of each month into an employee retirement account for Colin that pays interest at the rate of 8%/year compounded monthly. Colin has also contributed $2,000 at the end of each of the last 4 years into an IRA that pays interest at the rate of 10%/year compounded yearly. How much does Colin have in his retirement fund at this time?
Mr. Del Valle is 54 years old and plans to retire in 8 years. He wants to live at least 20 years after he retires. He has $125,000 in savings and expects to earn 7% annual interest. He expects to have an income of $45,000, the same income he currently receives from his job. Del Valle will begin receiving his benefit after 8 years on a bi-weekly basis (24 payments per year) after he retires. Annual inflation is expected to reach 5%. Determine how much Mr. Del Valle must save over the next 8 years to meet the retirement goal.
A house costs $150,000. The terms of the sale are 10% down payment and the remainder to be paid in monthly payments over 10 years at an annual rate of 4.25% compounded monthly.When15000 X 10/100 = 15000 the balance = 15000 – 15000 = $135,000 (P). You decide to pay an extra $50.00 per period as you pay back the loan. By doing this, you will decrease the loan duration by approximately 117 periods. In addition to paying an extra $50.00 per period as you pay back the loan, you decide to make an exrra payment of $5000 at fifth period. By doing this, you will decrease the original loan duration by approximately how many periods?