Question

Karen makes deposits of X at the beginning of each year for 10 years. She uses...

  1. Karen makes deposits of X at the beginning of each year for 10 years. She uses the funds in her account to purchase an annuity with 10 payments of 70 starting six years after the final deposit of X. The annual effective interest rate is 8%. Calculate X.
Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Paul deposits $ 1,000 into a fund at the beginning of each year for 20 years....
Paul deposits $ 1,000 into a fund at the beginning of each year for 20 years. The fund earns interest at an annual effective rate of 8%. At the end of 20 years, he uses the fund to purchase a perpetuity-immediate with annual payments of X, based on an annual rate of discount of 6%. Determine X. Possible answers are 2,589 or 2,689 or 2,603 or 2,746 or 2,921.
Karen deposits $8,000 in a bank account at the end of year one (t =1). She...
Karen deposits $8,000 in a bank account at the end of year one (t =1). She makes another deposit of $14,000 into the account at the end of year two (t=2) and she makes a third deposit of $10,000 at the end of year three (t=3). If the bank pays interest at 8 percent compounded annually, how much is the total present value of these amounts?
b) Suzette makes deposits of $500.00 at the beginning of each quarter for 10 years into...
b) Suzette makes deposits of $500.00 at the beginning of each quarter for 10 years into an account earning 8% quarterly. Find the amount in Suzette’s account after 10 years.
A man deposits $17,000 at the beginning of each year for 10 years in an account...
A man deposits $17,000 at the beginning of each year for 10 years in an account paying 7​% compounded annually. He then puts the total amount on deposit in another account paying 9​% compounded semiannually for another 9 years. Find the final amount on deposit after the entire 19​-year period. He will have a final amount of ​$ after the entire 1919​-year period.
At time t = 0, Ned deposits X into a fund crediting interest at an effective...
At time t = 0, Ned deposits X into a fund crediting interest at an effective annual interest rate of 6%. At the end of each year in years 6 through 10, he uses the fund to purchase an annuity-due of 2000/year for 12 years at an effective interest rate of 3%. After the last annuity purchase at the end of year 10, the fund is empty. Determine X. Possible answers are 64,500 or 69,500 or 78,500 or 81,000 or...
Q5) Selima deposits $5000 ( t = 0 years) in an account paying r(2) = 3.00%.At...
Q5) Selima deposits $5000 ( t = 0 years) in an account paying r(2) = 3.00%.At the end of 4 years (t = 4 years) she adds another $9000 to her account and the interest rate changes to r(2) = X%. After another 3 years ( t = 7 years) she adds another $7000 to her account and the interest changes to r(2) = 3.00%. At the end of 11 years, she has $27567.44 in her account. a) How much...
Sof ́ıa saves money for retirement. She deposits $150 on the first day of every month...
Sof ́ıa saves money for retirement. She deposits $150 on the first day of every month (starting today) for 30 years in a saving account. Altogether, 360 investments. She plans to retire after 30 years and from that time on she does not invest money anymore, and rather she plans to withdraw a fixed amount of money $Q every month (starting on the first day of the 361st month) for 40 years. Altogether, 480 withdrawals. Assume that the annual interest...
Mr. Gonzales has made beginning-of-year deposits into an investment account for the past 21 years. Each...
Mr. Gonzales has made beginning-of-year deposits into an investment account for the past 21 years. Each deposit was $5500, and the account earned interest at a rate of 4.5% APR, compounded quarterly, each year. Having made his last deposit one year ago, he now plans to transfer all of the accumulated funds today into a money-market account that earns an APR of 1.50% compounded quarterly. If he plans to withdraw $4000 from the account at the end of each quarter...
A man deposits ​$16,000 at the beginning of each year for 18 years in an account...
A man deposits ​$16,000 at the beginning of each year for 18 years in an account paying 6​% compounded annually. He then puts the total amount on deposit in another account paying 9​% compounded semiannually for another 13 years. Find the final amount on deposit after the entire 31​-year period. He will have a final amount of $____? after the entire 31-year period ​(Simplify your answer. Round to the nearest cent as​ needed.)
No.1 Beginning one year from now, six annual deposits of $2,000 each will be made into...
No.1 Beginning one year from now, six annual deposits of $2,000 each will be made into an account paying 8%. What will be the balance in the account after the sixth deposit? No.2 What amount must be deposited at 10% in an account on January 1, 2019 if it is desired to make equal annual withdrawals of $5,000 each beginning on Janaury 1, 2020? The last withdrawal will occur on January 1, 2023.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT