Question

- Your grandmother deposited $1,000 into an account for you when
you were born, and on each birthday ever since. Interest rates are
4%. (8 pt.s)
- How much will be in the account on your 21
^{st}birthday? - If your grandmother forgot to make a deposit when you turned 16, how much will be in the account when you turn 21?

- How much will be in the account on your 21
- If a $100 zero coupon bond is sold with a 6 month maturity and a 3.5% yield, how much would it sell for? (5 pt.s)

Answer #1

Your uncle deposited $5,000 into an account for you when you
were born, $5,000 more when you turned six, and $5,000 more when
you turned twelve. How much will be in the account on your
21st birthday if interest rates are 6%?

1. Your parents deposited $100 in a bank account for you when
you were born. For the first 16-years of your life, the interest
rate earned on the account was 6.5%. Since then, rates have fallen
considerably and have averaged just 3%. Now you are 30-years of age
and want to cash in to fund your property deposit. How much is in
your account?

Your grandmother has been putting $ 5 000 into a savings account
on every birthday since your first (that is, when you turned 1).
The account pays an interest rate of 3 %. How much money will be in
the account immediately after your grandmother makes the deposit on
your 18th birthday? The amount in the account upon your 18th
birthday is $ nothing. (Round to the nearest dollar.)

When Michael was born, his grandmother arranged to deposit $5000
in an account for him at 8% annual interest compounded
continuously. His grandmother plans to add to the account
continuously at the rate of $1000 a year. How much will be in the
account when Michael is 18?

When you were born, your dear old Aunt Minnie promised to deposit
$807 into a savings account bearing a 14% compounded annual rate
(EAR) on each birthday, beginning with your first. You have just
turned 21 and want the dough. However, it turns out that dear old
(forgetful) Aunt Minnie made no deposits on your 2th and 10th
birthdays. How much is in the account right now?

when you were born your dear old Aunt Minnie promised to deposit
OMR 500 into a savings account bearing a 5% compounded annual rate
on each birthday. beginning with your first . you have just turned
21 and want the dough. however it turns out that dear old
(forgetful) aunt minnie made no deposits on your fifth and eleventh
birthdays. how much is in the account right now ?
a- omr 16,768.19
b-21,000.00
c-10,500.00
d-17,859.63
e-15,953.74

16) Stephen's grandmother deposited $100 in an investment
account for him when he was born, 25 years ago. The account is now
worth $1,500. What was the average rate of return on the
account?
17)The present value of $400 to be received at the end of 10
years, if the discount rate is 5%, is __
18)The present value of $1,000 to be received at the end of five
years, if the discount rate is 10%, is __
19)What is...

On your birthday, when you turned 24, $25400 was deposited in an
account which earns 10.5% compounded annually.
a. How much can you withdraw annually for 11 years if
the first withdrawal is made on the day you become 49?
b. State the total amount of interest earned on this
account.

On your birthday, when you turned 20, $12100 was deposited in an
account which earns 10.5% compounded annually. a. How much can you
withdraw annually for 16 years if the first withdrawal is made on
the day you become 45? $ b. State the total amount of interest
earned on this account. $

When you were born, your Grandma started a savings plan for you.
The plan has an interest rate of 7% compounded monthly and the
terms of the savings plan stated that she was to make payments on
your birthday each year – including the year that you were born.
The contract states that you cannot withdraw the money until your
25th birthday. If Grandma makes the deposit on your
25th birthday and you are able to withdraw $55,320.65,
how much...

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