Question

A person deposits $17000 in an account which earns 6% compounded quarterly. At the end of 4 years the person withdraws $4250, and at the end of 7 years they withdraw $5950. How much can be withdrawn at the end of 9 years in order to deplete the account?

Answer #1

Future Value = Present Value * (1+quarter rate)^number of quarters

Quarter Rate = 0.06/4 = 0.015

Amount at the end of four years:

Number of quarters =4*4 =16

Amount = 17000 * (1+0.015)^16 = 21572.754

Withdrawl = 4250

Amount left = 21572.754 - 4250 = 17322.754

Amount after end of 7h year:

Amount = 17322.754 *(1+0.015)^12 = 20711.399

Withdrawl = 5950

Amount left = 20711.399- 5950 = 14761.399

Amount left for withdrawl after end of 9th year:

**Amount left = 14761.399 * (1+0.015)^8 = 16628.61
Answer**

A person deposits $275 at the end of each month in an account
which earns 9.5% compounded monthly for 29 years. The person then
stops making the deposits, but allows the money to remain in the
bank earning the same interest for 6 more years.
a. Find the value of this account at the end of 35 years.
$
b. State the total amount of interest earned on this account.
$

A person deposits $45 at the end of each month in an account
which earns 12.5% compounded monthly for 29 years. The person then
stops making the deposits, but allows the money to remain in the
bank earning the same interest for 15 more years.
a. Find the value of this account at the end of 44 years.
$
b. State the total amount of interest earned on this account.

Rahul deposits $5000.00 in an account on April 1, 2016 which
earns 6.25% compounded quarterly. How much is in the account on
September 15, 2021 if simple interest is allowed for part of a
conversion period?

A person deposits $100 per month into a savings
account for 2 years. If $75 is withdrawn in months 5, 7 8 in
addition to the deposits), construct the cash flow diagram to
determine how much will be in the account after 2 years at i = 6%
per year, compounded quarterly . Assume there is no interperiod
interest .

Mike deposits $125,000 today into an investment account which
pays 6% compounded quarterly. How much will Mike have in
his account after 20 years?

A person wants to establish an annuity for retirement. He wants
to make quarterly deposits for 25 years so that he can then make
quarterly withdraws of $14,500.00 for 15 years. The annuity earns
6.94% compounded quarterly.
(a) How much will have to be in the account at the time he
retires? Value of account at retirement:
[Note: Your answer is a dollar amount and should have a dollar
sign and exactly two decimal places.]
(b) How much should be...

A person deposits $1000 into a savings account that earns
interest at 12.25% compounded daily. How much interest will be
earned during the second year? Ans; 147.27$

A person has $100,000 in a saving account that earns interest of
5% per year, compounded annually. If the person withdraws $5,000 at
the end of each year, after how many years (a whole number) will
the saving be exhausted? Will it ever get exhausted?

Suppose a young couple deposits $500 at the end of each quarter
in an account that earns 6.8%, compounded quarterly, for a period
of 9 years. How much is in the account after the 9 years? (Round
your answer to the nearest cent.)
$=
After the 9 years, they start a family and find they can
contribute only $200 per quarter. If they leave the money from the
first 9 years in the account and continue to contribute $200 at...

Joe Blow deposits $2,400 at the end of each quarter for 35 years
into an account paying 11% compounded quarterly. How much is in
Joe's account at the end of the 35 years? (Round your answer to the
nearest cent.)
$
(b) How much interest does Joe earns on his deposits?
$

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 6 minutes ago

asked 6 minutes ago

asked 26 minutes ago

asked 55 minutes ago

asked 57 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago