Question

You deposit $4000 each year into an account earning 3% interest
compounded annually. How much will you have in the account in 25
years?

Answer #1

Annuity is the equal payent at regular interval.So this is the case of future value of annuity. | |||||||||||

Future Value of annuity | = | Annuity x Future Value of annuity of 1 | |||||||||

= | $ 4,000 | x | 36.4593 | ||||||||

= | $ 1,45,837.06 |
||||||||||

Working: | |||||||||||

Future Value of annuity of 1 | = | (((1+i)^n)-1)/i | Where, | ||||||||

= | (((1+0.03)^25)-1)/0.03 | i | 3% | ||||||||

= | 36.4593 | n | 25 | ||||||||

Thus, | |||||||||||

It will have in 25
years |
$ 1,45,837.06 |
||||||||||

You deposit $3000 each year into an account earning 6% interest
compounded annually. How much will you have in the account in 35
years?

You deposit $2000 in an account earning 3% interest compounded
monthly
How much will you have in the account in 20 years?
How much interest will you earn?
You deposit $10,000 in an account earning 4% interest compounded
monthly.
How much will you have in the account in 25 years?
How much interest will you earn?

If you deposit $12,000 in an interest-bearing account earning
3%, compounded daily, how much will you have at the end of 6
years?

You deposit $300 each month into an account earning 5% interest
compounded monthly.
a) How much will you have in the account in 30 years?
$
b) How much total money will you put into the account?
$
c) How much total interest will you earn?
$

You deposit $500 each month into an account earning 4%
interest compounded monthly. How much will you have in the account
in 30 years? How much total money will you put into the account?
How much total intrest will you earn?

1/ You deposit $3000 at the beginning of each year into an
account earning 5% interest compounded annually. How much will you
have in the account in 20 years?
2/Suppose you want to have $400,000 for retirement. Your account
earns 7% interest compounded monthly. If you deposit $200 at the
end of each month, how long will it take you to reach your goal?
Round to the nearest year.

Igor puts 4000 every year into an account earning a 4.5% annual
interest rate compounded annually.
a. How much is in the account after 15 years? (1
point) dollars
Show your work. (8 points)
b. How much interest did the account earn? (1
point) dollars
Show your work. (4 points)

FINANCE
5.
5A.
You deposit $5000 in an account earning 8% interest compounded
monthly. How much will you have in the account in 15
years?
5B.
You can afford a $350 per month car payment. You've found a 3
year loan at 2% interest. How big of a loan can you
afford?
5C.
You have $300,000 saved for retirement. Your account earns 5%
interest. How much will you be able to pull out each month, if you
want to be...

You deposit $300 each month into an account earning 2% annual
interest compounded monthly
A. How much money will you have in your account in 35 years?
B. How much total money will you put into the account ?
C. How much total interest will you earn?

You deposit $10,000 in a savings account where the interest rate
is 3% compounded annually. At the beginning
of the 6th year, the bank raises its interest rate to 3.5%. How
much will you have accumulated after 15 years?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 43 seconds ago

asked 43 seconds ago

asked 1 minute ago

asked 3 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago

asked 4 minutes ago