Question

Required Lump-Sum Payment To complete your last year in business school and then go through law...


Required Lump-Sum Payment

To complete your last year in business school and then go through law school, you will need $30,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $30,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 3.51% interest a sum of money that is sufficient to provide the 4 payments of $30,000 each. His deposit will be made today.

  1. How large must the deposit be? Round your answer to the nearest cent.
    $    
  2. How much will be in the account immediately after you make the first withdrawal? Round your answer to the nearest cent.
    $    
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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
Required Lump-Sum Payment To complete your last year in business school and then go through law...
Required Lump-Sum Payment To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $20,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 4.61% interest a sum of money that is sufficient to provide the 4 payments of $20,000 each. His deposit will be...
To complete your last year in business school and then go through law school, you will...
To complete your last year in business school and then go through law school, you will need $30,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $30,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 3.73% interest a sum of money that is sufficient to provide the 4 payments of $30,000 each. His deposit will be made today. How...
To complete your last year in business school and then go through law school, you will...
To complete your last year in business school and then go through law school, you will need $20,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $20,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 6.54% interest a sum of money that is sufficient to provide the 4 payments of $20,000 each. His deposit will be made today. How...
Management at the company you work for is offering to pay for you to complete your...
Management at the company you work for is offering to pay for you to complete your Executive MBA from OSU which will take $10,000 per year for 4 years starting immediately after your MS graduation in May 2020. Management will set aside a sum of money now in their Education Fund paying 7% interest that will be enough to provide the four payments of $10,000 each. While the education money has been deposited today by the management, you will need...
Quantitative Problem 1: You plan to deposit $2,300 per year for 4 years into a money...
Quantitative Problem 1: You plan to deposit $2,300 per year for 4 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 4 years? Do not round intermediate calculations. Round your answer to the nearest cent. $   Assume that your deposits will begin today. What amount will be in your account after 4 years? Do not...
What lump sum would you need to invest at 10.00% interest compounded quarterly. so that your...
What lump sum would you need to invest at 10.00% interest compounded quarterly. so that your investment will be worth $35,000.00 after the following lengths of time. Round your answers to the nearest cent. You don't need to use commas to separate thousands in your answer, but it won't hurt if you do. 10 quarters? 10 years?
Your daughter is considering two options for her career. The first is to go to law...
Your daughter is considering two options for her career. The first is to go to law school at Harvard. You estimate this will cost you $500,000 and you will have to pay this in one lump sum 5 years from today. Her alternative choice is to go to Europe to musical conservatory. For this option she will need a violin worth $100,000 which you need to buy now. The cost of her schooling will be $100,000 per year for 3...
. It is your 6th birthday today. You have a trust fund with $50,000 that is...
. It is your 6th birthday today. You have a trust fund with $50,000 that is earning 8% per year. You expect to withdraw $30,000 per year for 7 years starting on your 22nd birthday for graduate school. How much money will be left in the trust fund after your last withdrawal (rounded to the nearest $10)?         
A) You plan to deposit $2,000 per year for 6 years into a money market account...
A) You plan to deposit $2,000 per year for 6 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 6 years? Round your answer to the nearest cent. Do not round intermediate calculations. $ Assume that your deposits will begin today. What amount will be in your account after 6 years? Round your answer to...
Suppose that you desire to get a lump-sum payment of $100,000 three years from now. Instructions:...
Suppose that you desire to get a lump-sum payment of $100,000 three years from now. Instructions: Round your answer to the nearest dollar. How many current dollars will you have to invest today at 10 percent interest to accomplish your goal? $.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT