Question

Cathy wants to have $23,000 in cash 4 years from now in order to pay for...

Cathy wants to have $23,000 in cash 4 years from now in order to pay for improvements that must be made to her small office at that time. If Cathy finds a savings account that pays annual interest of 4.4% compounded monthly, then how much should she invest right now in the account in order to have the funds in 4 years? (Round your answer to the nearest cent.)
$

Second National Bank offers an account that earns 5.33% per year, compounded continuously. If a person invests $15,000 in this account, what will be the value of the account at the end of 10 years? (Round your answer to the nearest cent.)
$

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Pirerras are planning to go to Europe 4 years from now and have agreed to...
The Pirerras are planning to go to Europe 4 years from now and have agreed to set aside $170/month for their trip. If they deposit this money at the end of each month into a savings account paying interest at the rate of 2%/year compounded monthly, how much money will be in their travel fund at the end of the fourth year? (Round your answer to the nearest cent.) $
A mother wants to invest $7000 for her son's future education. She invests a portion of...
A mother wants to invest $7000 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $420, how much money was invested in the CD account? Round to the nearest cent if necessary.
A student wants to have $40,000 when he graduates 4 years from now. His grandfather gave...
A student wants to have $40,000 when he graduates 4 years from now. His grandfather gave him a gift of $15,000. How much must he save each year (to the nearest dollar) if he deposits the $15,000 today and can earn 11% on both the $15,000 and his savings? A. $  3858 B. $  3658 C. $  3558 D. $  3758
Twins graduate from college together and start their careers. Twin 1 invests $2000 at the end...
Twins graduate from college together and start their careers. Twin 1 invests $2000 at the end of each year for 10 years only (until age 30) in an account that earns 7%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 7% compounded annually in order to have the same amount as twin...
Twins graduate from college together and start their careers. Twin 1 invests $2500 at the end...
Twins graduate from college together and start their careers. Twin 1 invests $2500 at the end of each year for 10 years only (until age 31) in an account that earns 7%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 7% compounded annually in order to have the same amount as twin...
How much would you need to deposit in an account now in order to have $4000...
How much would you need to deposit in an account now in order to have $4000 in the account in 10 years? Assume the account earns 2% interest compounded monthly.
A young couple wants to have a college fund that will pay $20,000 at the end...
A young couple wants to have a college fund that will pay $20,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) a. Suppose 8 years after beginning the annuity payments, they receive...
A young couple wants to have a college fund that will pay $40,000 at the end...
A young couple wants to have a college fund that will pay $40,000 at the end of each half-year for 8 years. (a) If they can invest at 8%, compounded semiannually, how much do they need to invest at the end of each 6-month period for the next 18 years to begin making their college withdrawals 6 months after their last investment? (Round your answer to the nearest cent.) $ (b) Suppose 8 years after beginning the annuity payments, they...
Al Derover wants to buy a used vehicle in five years. He estimates the cost will...
Al Derover wants to buy a used vehicle in five years. He estimates the cost will be $12,000. If he invests $8,500 now at a rate of 10% compounded semiannually, how much will he have? Will he have enough money to buy the vehicle at the end of five years? (Round your answer to the nearest cent.)
How much will Fortnite Corp. have to invest every 4 weeks, beginning 2 years from now,...
How much will Fortnite Corp. have to invest every 4 weeks, beginning 2 years from now, to accumulate $2,700,000 in 15 years if it deposits $25,000 today into a fund that pays a return of 9.45% compounded continuously? Assume 52 weeks in a year. a.) $7,904 b.) $7,841 c.) $8,465 d.) $8,402 e.) $8,340 f.) $7,966