Rachel can earn 3% interest in her savings account. Her daughter Dani is 11 years old today. Suppose Rachel deposits $4000 today, and one year from today she deposits another $500. Each year she increases her deposit by $500 until she makes her last deposit on Dani's18th birthday. how much is on deposit after the 18th birthday? $20,635.62 $18,236.68 $23,623.00 $26,369.36

Rachel can earn 3% interest in her savings account. Her daughter Dani is 11 years old today. Suppose Rachel deposits $4000 today, and one year from today she deposits another $500. Each year she increases her deposit by $500 until she makes her last deposit on Dani's18th birthday. how much is on deposit after the 18th birthday? $20,635.62 $18,236.68 $23,623.00 $26,369.36

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

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A mother earned $18750.00 from royalties on her cookbook. She set aside 20% of this for a down payment on a new home. The balance will be used for her son's future education. She invests a portion of the money in a bank certificate of 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 $900.00, how much money was invested at each rate? How much money was invested in the CD account? (Round to the nearest cent.) GILB
14. Smart Tabitha has set up a retirement savings account. She has arranged to have $110 taken out of each of her biweekly checks, with contributions made at the end of each two-week period. Her retirement account will earn 97% APR. Tabitha has just had her twenty-ninth birthday, and she can start drawing retirement savings when she is 65. Find the following: (a) The future value of the account when Tabitha turns 65. (b) Tabitha's total contribution to the account. (c) Total interest earned by Tabitha's account.
Stella deposits $54,000 in a savings account at a bank that offers interest of 5.3% on such accounts. What is the value of the money in her savings account in five years’ time?
Heather deposited $1, 700 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next 13 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Heather in 13 years?
Armita is saving for the down payment on a house. She deposits $12,500.00 today, $8,250.00 in 4 months, and $6,900.00 in 3 years. The account earns interest at the rate i(1)= 8.788%. How much does she have in her account after 6 years?
Jeni has decided that she needs to start saving for her retirement. She can afford $100 a month deducted automatically from her paycheck. She deposits it into an account that earns 4.5% interest compounded monthly. How much will she have in her account when she retires 42 years later? A. $ 14,922.70 B.$ 50,400.00 C. $132,213.00 D. $149,226.96
Grandma Patt has decided to open a savings account for her newborn granddaughter. The savings account pays 3% interest. If Grandma Patt wants there to be $10,000 in the account in 18 years, how much should she deposit today? Assume no other deposits or withdrawals. a) $5,873.95 b) $17,024.33 c) $8,362.17 d) $10,609.23
how much interest will ali earn in the 9th year if she deposits $12,500 today in ONE BANK's savings account that earns 4.75% interest compounded annually?
Your grandfather put some money in an account for you on the day you were born. You are now 16 years old and are allowed to withdraw the money for the first time. The account currently has $5,311 in it and pays an 11% interest rate. a. How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put in the account? a. How much money would be in the account if you left the money there until your 25th birthday? If you left the money there until your 25th birthday, the amount in the account would be $ nearest cent.) (Round to the
Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $130,000 from her savings account on each birthday for 24 years following her retirement, the first withdrawal will be on her 66th birthday. Your friend intends to invest her money at 10.7% interest per year. How much money must she accumulate by the time she retires in order to make these withdrawals? (Round your answer to the nearest dollar)
Andrew deposits $306.06 each month into an annuity account for his child's college fund in order to accumulate a future value of $80,000 in 16 years. How much of the $80,000 will Andrew ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary.
Ten years ago, Jane deposited $5,500 into her savings account. Five years later, she added an additional $2,500 to her account. During the first 5 years, her account earned an interest rate of 6.5 percent compounded annually, while the last 5 years saw her account earn 5.0 percent interest compounded annually. How much money does Jane have in her account today?

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