Question

You set up a college fund in which you pay $2000 each year at the end...

You set up a college fund in which you pay $2000 each year at the end of the year. How much money will you have accumulated in the fund after 10 years, if your fund earns 8% compounded annually?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
You deposit $3,000 in a fund at the end of each year for 12 years. The...
You deposit $3,000 in a fund at the end of each year for 12 years. The fund pays 5% compounded annually. How much money is available to withdraw immediately after your last deposit?
Pearson sets up a fund to pay​ $1000 at the end of each month for 9.5...
Pearson sets up a fund to pay​ $1000 at the end of each month for 9.5 years. Interest on the fund is​ 3.9% compounded monthly. ​(a) How much money must be deposited into the​ fund? ​(b) How much will be paid out of the​ fund? ​(c) How much interest is earned by the​ fund?
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...
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...
Gary decides to set up a retirement fund by depositing $107 at the end of each...
Gary decides to set up a retirement fund by depositing $107 at the end of each week for 22 years. How much will he have after 22 years, if the interest rate is 1.66%, compounded semiannually?
Mr. Jones deposited $800 at the end of each year into a RRSP investment fund for...
Mr. Jones deposited $800 at the end of each year into a RRSP investment fund for the last 10 years. His investment earned 10% compounded annually for the first 7 years and 9% compounded annually for the last 3 years. How much money will he have in his account 10 years after his last deposit if the interest rate remains at 9% compounded annually?
Carl is the beneficiary of a $24,000 trust fund set up for him by his grandparents....
Carl is the beneficiary of a $24,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive equal installments from this fund at the end of each year over an 8-year period. If the fund earns interest at the rate of 10%/year compounded annually, what amount will he receive each year? Assume that the balance in the fund is zero after the last installment is received. (Round your answer to the...
How much is needed in an account that will pay out $2000 at the end of...
How much is needed in an account that will pay out $2000 at the end of each quarter for the next 15 years, if the account earns 8% interest, compounded quarterly?
1) Carl is the beneficiary of a $22,000 trust fund set up for him by his...
1) Carl is the beneficiary of a $22,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive equal installments from this fund at the end of each year over a 6-year period. If the fund earns interest at the rate of 9%/year compounded annually, what amount will he receive each year? Assume that the balance in the fund is zero after the last installment is received. (Round your answer to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT