Question

Suppose you were hired on January 1, 2010 and started depositing $200 at the end of each month, with the first deposit on January 31, 2010, in a pension fund that pays interest of 9% per year compounded monthly on the minimum monthly balance and credited at the end of each month.

(a) How much money was in the pension fund on February 1, 2010?

(b) How much money was in the pension fund on March 1, 2010?

(c) How much money was in the pension fund on April 1, 2010?

(d) How much money will be in the pension fund on January 1, 2035?

(e) What is the total amount of interest earned in this pension fund during these 25 years?

Answer #1

Suppose that you invested $4,000 in a CD on January 1, 2015
maturing in 5 years that pays interest of 3% per year compounded
monthly and credited at the end of each month. You don't withdraw
any money from the CD during its term.
(a) How much money was in the CD account on
February 1, 2015?
(b) How much money was in the CD account on March 1,
2015?
c) How much money will be in the CD account on
January 1,...

10. Suppose you invested $2,000 in a CD on January 1, 2016
maturing 5 years that pays interest of 4% per year compounded
monthly and credited at the end of each month. You don't withdraw
any money for the CD during the term.
(a.) How much money will be in the CD account on January 1,
2021?
(b.) What is the effective annual rate of interest on this
CD?

Suppose you invested $5,000 in a CD on January 1, 2015 maturing
in 20 years that pays interest of 4% per year compounded
semiannually and credited at the end of each six month period. You
don't withdraw any money from the CD during its term.
(a) How much money was in the CD account on July 1, 2015?
b) How much money was in the CD account on January 1, 2016?
(c) How much money will be in the CD...

Suppose you invested $5,000 in a CD on January 1, 2015 maturing
in 20 years that pays interest of 4% per year compounded
semiannually and credited at the end of each six month period. You
don't withdraw any money from the CD during its term.
(a) How much money was in the CD account on July 1, 2015?
(b) How much money was in the CD account on January 1, 2016?
(c) How much money will be in the CD...

A) Suppose payments were made at the end of each quarter into an
ordinary annuity earning interest at the rate of 10% per year
compounded quarterly. If the future value of the annuity after 5
years is $50,000, what was the size of each payment?
B) The Pirerras are planning to go to Europe 3 years from now
and have agreed to set aside $150/month for their trip. If they
deposit this money at the end of each month into...

3. Suppose you invest $20,000 in a CD on January 1, 2020
maturing in 14 years that pays interest of 5% per year compounded
semiannually (meaning every six months) and credited at the end of
each six month period. You don't withdraw any money from the CD
during the term.
(a) How much money is in the CD account on July 1,
2020?
(b) How much money is in the CD account on January 1,
2021?
(c) How much money...

1) Lauren plans to deposit $200 per month into an account at the
end of each month for the next 15 years. If her back pays interest
at the rate of 2.5% per year compounded monthly, how much will
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2) Jim makes monthly payments of $800 into a retirement account
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Pearson sets up a fund to pay $1000 at the end of each month
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(a) How much money must be deposited into the fund? (b) How much
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1.)
How much should you deposit at the end of each month into an
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2.) How much of that 1 million comes from interest?

Since he was 22 years old, Ben has been depositing $275 at the
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each month into his account so that both men will have...

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