Question

Every 6 months for 5 years, a father deposits $3000 in a trust company for his...

Every 6 months for 5 years, a father deposits $3000 in a trust company for his daughter’s education. If the money earns at 16% compounded semi-annually, how much will be in the fund after the 7th deposit? After the last deposit?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer

Given data we have ,

Principal amount P = $ 3,000

Also we knwo from the knowledge of compound interest that , when the interest is cumpound half yearly or semiannually then ,

R = 16%

time period T = 2n ( for semiannual deposit ) = 2*5 =10

Using the formula of coumpound interest we get the amount or deposit at 7th deposit or last deposit .

Subsituting the value in above equation we get ,

HENCE THE FINAL DEPOSIT OR THE LAST DEPOSIT AMOUNT TO $ 10,234

have a good day !

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
A careful father decides to deposit $67.00 every month to fund his daughter’s college education. He...
A careful father decides to deposit $67.00 every month to fund his daughter’s college education. He deposits the money in a fund that pays 4.44% APR. His first deposit will be in one month, and his daughter will start college in 12.00 years. How much money will he have saved for his daughter at the end of the 12.00th year?
A careful father decides to deposit $144.00 every month to fund his daughter’s college education. He...
A careful father decides to deposit $144.00 every month to fund his daughter’s college education. He deposits the money in a fund that pays 6.12% APR. His first deposit will be in one month, and his daughter will start college in 14.00 years. How much money will he have saved for his daughter at the end of the 14.00th year?
starting six months after her grandson robin's birth Mrs devine made deposit of $250 into a...
starting six months after her grandson robin's birth Mrs devine made deposit of $250 into a trust fund every 6 months until Robin was 18 years old. the trust fund provides for equal withdrawals at the end of each 6 months for 4 years beginning 6 months after the last deposit. if interest is 5.17% compounded semi annually how much will Robin receive every 6 months?
2. Dave’s dad is saving money for his retirement. In the last five years; he invests...
2. Dave’s dad is saving money for his retirement. In the last five years; he invests $1,800 every 6 months in a mutual fund that pays 8% compounded semi-annually. Now, the rate drops to 5.8% compounded quarterly and he wants to deposit $1,200 every quarter for another five years. How much money will he has at the end of ten years?
Deposits of $1500 are made every 3 months starting today, October 5, 2006.  The final deposit is...
Deposits of $1500 are made every 3 months starting today, October 5, 2006.  The final deposit is made on January 5, 2011.  If the fund earns j4 = 8%, how much is in the fund immediately after the deposit on January 5, 2011?  
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly. How much will be the total you have at the end of the time? 2. How much money will you have to deposit now if you wish to have $5,000 at the end of 8 years. Interest is to be at the rate of 6% compounded semiannually? 3. In the California “Million Dollar Lottery” a winner is paid...
At the end of every six months, Steve deposits $300 into a building and loan association...
At the end of every six months, Steve deposits $300 into a building and loan association that pays 10% compounded semi-annually. At the end of 10 years, how much will he have to his credit? *Need answer with formula, please, not spreadsheet.
Raj is to receive $16 700 from his trust fund in 7.5 years. He negotiates a...
Raj is to receive $16 700 from his trust fund in 7.5 years. He negotiates a deal where he can withdraw $350 per month starting 2.75 years before he can withdraw the remainder of the funds. On his money, he is able to earn 4.18% compounded annually. How much is his trust fund reduced to?(10 Points) $4259.40 $4359.40 $4395.40 $4495.40
A sum of money invested at 6% for every 6 months period will double in how...
A sum of money invested at 6% for every 6 months period will double in how many years? A man is retiring with 250,000 in the bank. He plans on spending 30,000 per year for the rest of his life. What interest does he need? You deposit 2000 into a savings account that earns 12% compounded quarterly for 2 years find f at the end of year 2. F is most nearly? A savings account earns 7% interest. if 2000...
Ali invested $2,100 at the beginning of every 6 months in an RRSP for 11 years....
Ali invested $2,100 at the beginning of every 6 months in an RRSP for 11 years. For the first 5 years it earned interest at a rate of 3.50% compounded semi-annually and for the next 6 years it earned interest at a rate of 6.40% compounded semi-annually. a. Calculate the accumulated value of his investment at the end of the first 5 years. $63,900.39 $64,865.00 $22,733.34 $23,131.17 b. Calculate the accumulated value of her investment at the end of 11...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT