Victor has been consistently withdrawing money from his savings account for severalyears. If he withdrew $19500.0 every year for 7 years, and interest rate was 0.075compounded annually, what was his original investment at time zero to enable thesepayments. At the end of 7 years his account balance was zero.Your Answer:

The objective of the question is to find out the original investment that Victor made in his savings…

Answered: Victor has been consistently…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sam refuses to retire until his retirement account has a balance of at least $ 369,214 . Sam refuses to make any more deposits in the account. The account currently has a balance of$ 117,923 and earns 6% per year, compounded semi-annually. How long does Sam have before he will retire? You are computing number of years. Round your answer to one decimal place. For example, record 14.294 years as 14.3.
Bob opened a bank account 11 years ago. Today, he closes out the account, which is worth 2.04 times more than when it was opened. What annual rate of interest did Bob earn? Round to the nearest 0.01%, drop the % symbol. E.g., if your answer is 0.08375, record it as 8.38.
Your grandmother closed her bank account from a thrift bank and gotP6, 000, 000 with the 8% annual interest given. She said she has been savingup a same amount each year for 30 years where 8% interest has beenapplied. How much would her annual savings deposits be when her lastdeposit was a year ago? ANS:49, 041.3 show solution
Joel invested $1,025 at the end of every month into an investment fund that was earning interest at 4.75% compounded monthly. She stopped making regular deposits at the end of 9 years when the interest rate changed to 5.00% compounded quarterly. However, she let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in her investment fund at the end of 9 years. $0.00 Round to the nearest cent b. Calculate the accumulated balance in her investment fund at the end of 13 years. $0.00 Round to the nearest cent c. Calculate the amount of interest earned over the 13-year period. $0.00 Round to the nearest cent
Bob wants to deposit $5000 into a bank account at the beginning of the next month and $200 per month into that same account at the end of that month and each subsequent month for the next 5 years. If the bank pays interest at the rate of 3% per year compounded monthly, how much will Bod have in his account at the end of 5 years? Assume that he makes no withdrawals during the 5 year period.
Michael has a bank account that is worth $80,550. (a) Find the overall ROR if he had deposited $50,000 five years ago and left it undisturbed until now ? (b) Find the real ROR If the inflation over that period was 4% per year ? (c) What is the buying power of his money now compared to the buying power 5 years ago ?
Ten years ago Jim took a mortgage loan of $200,000 to be repaid in 20 equal annual installments of $30,197.34. The bank has told him that they would accept $145,000 today as payment in full for the remainder of the loan. What is the balance on this loan? If we assume that Jim has the money, what interest rate must he earn on alternative investments in order not to accept the bank offer?
Erik invested $575 at the end of every month in an investment fund that was earning interest at a rate of 4.20% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.69% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. b. Calculate the accumulated balance in his investment fund at the end of 10 years. c. Calculate the total interest earned over the 10-year period.
Derek currently has $10, 865.00 in an account that pays 4.00 %. He will withdraw $5,192.00 every other year beginning next year until he has taken 7.00 withdrawals. He will deposit $10865.0 every other year beginning two years from today until he has made 7.0 deposits. How much will be in the account 29.00 years from today?
This year 10 years after you first took out the loan, you check your loan balance. Only part of your payments have been going to pay down the loan, the rest has been going towards interest. You see that you still have 120,730 left to pay on your loan. Your house is now valued at $180,000. how much of your original loan have you paid off?
Your uncle has $260,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $35,000 at the end of each year, starting at the end of this year. He also wants to have $25,000 left to give you when he ceases to withdraw funds from the account. For how many years can he make the $35,000 withdrawals and still have $25,000 left in the end? O a. 6.71 years O b. 11.98 years Oc. 9.39 years Od. 11.26 years Oe. 10.50 years

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