Question

The Olfert Contractors, Inc., are saving $958.00 every month in order to purchase a new paving...

The Olfert Contractors, Inc., are saving $958.00 every month in order to purchase a new paving machine in twelve years. Their savings certificates pay 6% p.a. compounded monthly. How much of the maturity value will be interest? Answer to two decimal places.

Homework Answers

Answer #1

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

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A new employee has decided to start saving $200 per month for the next five years....
A new employee has decided to start saving $200 per month for the next five years. The employee uses a 6 percent per year compounded monthly interest rate for his planning. a) What would be the present value (at time zero) of the five years of savings b) When will the new employee have $4000 saved?
You have decided to place $644 in equal deposits every month at the beginning of the...
You have decided to place $644 in equal deposits every month at the beginning of the month into a savings account earning 5.88 percent per year, compounded monthly for the next 6 years. The first deposit is made today. How much money will be in the account at the end of that time period? Round the answer to two decimal places.
Todd can afford to pay $325 per month for the next 6 years in order to...
Todd can afford to pay $325 per month for the next 6 years in order to purchase a new car. The interest rate is 5.5 percent compounded monthly. What is the most he can afford to pay for a new car today?
At the start of every week, John goes to the bank and deposits $125 from his...
At the start of every week, John goes to the bank and deposits $125 from his last paycheck in a savings account paying a nominal 5.2% annual interest, compounded weekly. At the end of every month, his coworker Cathy deposits $500 in an account paying a nominal rate of 6% compounded monthly. Assuming they both started saving at the same time and continue for 20 years, what will be the difference (in $) between their respective balances at the end...
You decide to begin saving towards the purchase of a new car in 5 years. If...
You decide to begin saving towards the purchase of a new car in 5 years. If you put $1,000 at the end of each of the next 5 years in a savings account paying 6 percent compounded annually, how much will you accumulate after 5 years? What would be the ending amount if the payments were made at the beginning of each year?
You have decided to place $972 in equal deposits every month at the beginning of the...
You have decided to place $972 in equal deposits every month at the beginning of the month into a savings account earning 14.83 percent per year, compounded monthly for the next 12 years. The first deposit is made today. How much money will be in the account at the end of that time period? Round the answer to two decimal places.
You have decided to place $361 in equal deposits every month at the beginning of the...
You have decided to place $361 in equal deposits every month at the beginning of the month into a savings account earning 4.63 percent per year, compounded monthly for the next 5 years. The first deposit is made today. How much money will be in the account at the end of that time period? Round the answer to two decimal places.
Jennifer Creek is saving up for a new car. She wants to finance no more than...
Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000 estimated price in two years. She deposits $4000 into a savings account now and will make monthly deposits for the next two years. If the savings account pays a nominal interest rate of 5% per year with monthly compounding, how much must she deposit each month?
Michael Ross is saving up for a new car. She wants to finance no more than...
Michael Ross is saving up for a new car. She wants to finance no more than $12,000 of the $23,000 estimated price in two years. He deposits $3,500 into a savings account now and will make monthly deposits for the next two years. If the savings account pays a nominal interest rate of 4.5% per year with monthly compounding, how much must she deposit each month?
How much money must be deposited in saving account each month to accumulate $25,000 at the...
How much money must be deposited in saving account each month to accumulate $25,000 at the end of 6 years , if the bank pays interest at the rate of 8% per year compounded Monthly? Quarterly ?