Question

Jimmy deposits $3,400 now, $2,100 3 years from now, and $5,800 6 years from now. Interest...

Jimmy deposits $3,400 now, $2,100 3 years from now, and $5,800 6 years from now. Interest is 4% for the first 3 years and 10% for the last 3 years.

a. How much money will be in the fund at the end of 6 years?
_______
b. What is the present worth of the fund?
_________
c. What is the uniform series equivalent of the fund (uniform cash flow at end of years 1–6)?
______

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
You plan to start saving money by depositing $500 into a saving account one year from...
You plan to start saving money by depositing $500 into a saving account one year from now. You estimate that the deposits will increase by $100 per year for 9 years thereafter. What would be the present worth of the investments if the interest rate is 5% per year? What would be the equivalent uniform annual series? Also,draw a properly labeled Cash Flow Diagram for this question.
A person deposits $ 15,000 today in a savings account that pays 3% interest. Three years...
A person deposits $ 15,000 today in a savings account that pays 3% interest. Three years later he deposits $ 14,000. And, then, two years after this last deposit, product of the profit of a developed project, deposits $ 12,500. Four years after depositing the $ 12,500, he removes half of the money accumulated in this account, and transfers this amount to an investment fund that pays a rate of 8%. How much money would you have accumulated six years...
Assume that you would like to make 6 yearly deposits for your kid’s college tuition fee...
Assume that you would like to make 6 yearly deposits for your kid’s college tuition fee starting today. The initial deposit for today is $10000 dollars and each year the amount increases by $1000. The interest rate is assumed to be 8% per year. a) Draw the cash flow diagram (CFD). b) Assuming that your kind needs the tuition money as a lump-sum amount, 10 years from now. Find the total amount of money that will be accumulated in the...
An annual deposits of A1=$1,900 in a saving account is made for 6 years starting years...
An annual deposits of A1=$1,900 in a saving account is made for 6 years starting years 2. In year 8, a one- time withdrawal of $3,400 is made. In year 12, a one-time deposit of $2,200 is made. Then another series of annual deposits of A2 for 7 years started in year 14, increasing by $160 every year. If a one-time withdrawal of $1,100 was made in year 21 and the present worth of the whole amounts of deposits and...
A person deposits into an investment account $5000 today, $2500 two years from now, and $8000...
A person deposits into an investment account $5000 today, $2500 two years from now, and $8000 four years from now. (a) Construct a cash flow diagram of this scenario. (b) At an effective interest rate of 5.5% per year, how much will be in the investment account 10 years from now?
How much money would be accumulated 18 years from now from deposits of $15,000 per year...
How much money would be accumulated 18 years from now from deposits of $15,000 per year for five consecutive years, starting 3 years from now, if the interest rate is 8% per year?
"You plan to start saving for your retirement by depositing $9,583 exactly one year from now....
"You plan to start saving for your retirement by depositing $9,583 exactly one year from now. Each year you intend to increase your retirement deposit by 3%. You plan on retiring 30 years from now, and you will receive 6% interest compounded annually. This type of cash flow is called a geometric gradient. The formula to calculate the present worth of a geometric gradient is found in Table 3.6 in the textbook. However, in year 10, you have sudden expenses,...
What is the present value of $200 to be received two years from now, with an...
What is the present value of $200 to be received two years from now, with an interest rate of 5%? You deposit $2000 today at 6% interest. How much will you have in 5 years? You invest $5,000 today. You will earn 8% interest. How much will you have in 4 years? You have $450,000 to invest. If you think you can earn 7%, how much could you accumulate in 10 years? You deposit $300 each year for 15 years...
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...
calculate the present worth of an expenditure of $85 per year for 6 years that starts...
calculate the present worth of an expenditure of $85 per year for 6 years that starts in 3 years from now if the interest rate is 20%. Construct a cash flow diagram as well