Question

Your uncle deposited $5,000 into an account for you when you
were born, $5,000 more when you turned six, and $5,000 more when
you turned twelve. How much will be in the account on your
21^{st} birthday if interest rates are 6%?

Answer #1

Ans $ 37428.00

FV = | Future Value |

PV = | Present Value |

r = | rate of interest |

n= | no of period |

a) Value of amount Deposited at birth the end of 21 years | |

FV = | PV (1 + r )^n |

FV = | 5000*(1+6%)^21 |

FV = | 16997.82 |

b) Value of amount Deposited at age 6 at the end of 21 years | |

FV = | PV (1 + r )^n |

FV = | 5000*(1+6%)^15 |

FV = | 11982.79 |

c) Value of amount Deposited at age 12 at the end of 21 years | |

FV = | PV (1 + r )^n |

FV = | 5000*(1+6%)^9 |

FV = | 8447.39 |

Total Future Value = | 16997.82 + 11982.79 + 8447.39 |

37428.00 |

Your grandmother deposited $1,000 into an account for you when
you were born, and on each birthday ever since. Interest rates are
4%. (8 pt.s)
How much will be in the account on your 21st
birthday?
If your grandmother forgot to make a deposit when you turned
16, how much will be in the account when you turn 21?
If a $100 zero coupon bond is sold with a 6 month maturity and
a 3.5% yield, how much would it...

1. Your parents deposited $100 in a bank account for you when
you were born. For the first 16-years of your life, the interest
rate earned on the account was 6.5%. Since then, rates have fallen
considerably and have averaged just 3%. Now you are 30-years of age
and want to cash in to fund your property deposit. How much is in
your account?

On your birthday, when you turned 24, $25400 was deposited in an
account which earns 10.5% compounded annually.
a. How much can you withdraw annually for 11 years if
the first withdrawal is made on the day you become 49?
b. State the total amount of interest earned on this
account.

On your birthday, when you turned 20, $12100 was deposited in an
account which earns 10.5% compounded annually. a. How much can you
withdraw annually for 16 years if the first withdrawal is made on
the day you become 45? $ b. State the total amount of interest
earned on this account. $

When Jason Levy was born, his grandparents deposited $4,000 into
a special account for Jason's college education. The account earned
6.5% interest compounded daily.
(a) How much will be in the account when Jason is 18?
(b) If, on turning 18, Jason arranges for the monthly interest
to be sent to him, how much will he receive each thirty-day
month?
(c) How much would be in the account when Jason turns 18 if his
grandparents started Jason's savings account on...

When you were born, your dear old Aunt Minnie promised to deposit
$807 into a savings account bearing a 14% compounded annual rate
(EAR) on each birthday, beginning with your first. You have just
turned 21 and want the dough. However, it turns out that dear old
(forgetful) Aunt Minnie made no deposits on your 2th and 10th
birthdays. How much is in the account right now?

When you were born, your Grandma started a savings plan for you.
The plan has an interest rate of 7% compounded monthly and the
terms of the savings plan stated that she was to make payments on
your birthday each year – including the year that you were born.
The contract states that you cannot withdraw the money until your
25th birthday. If Grandma makes the deposit on your
25th birthday and you are able to withdraw $55,320.65,
how much...

when you were born your dear old Aunt Minnie promised to deposit
OMR 500 into a savings account bearing a 5% compounded annual rate
on each birthday. beginning with your first . you have just turned
21 and want the dough. however it turns out that dear old
(forgetful) aunt minnie made no deposits on your fifth and eleventh
birthdays. how much is in the account right now ?
a- omr 16,768.19
b-21,000.00
c-10,500.00
d-17,859.63
e-15,953.74

Dear Aunt Minnie was determined that you should go to college,
so when you were born, she decided that on each of your birthdays
she would invest $4,000 into an account paying 6% interest. On your
10th birthday, she was short on money and was unable to invest the
$4,000 that year. She faithfully invested the $4,000 on all of your
other birthdays. You just turned 18 today and Aunt Minnie made her
last investment of $4,000. She then tells...

When you were born your parents set up a bank account in your
name with an initial investment of $5,900. You are turning 21 in a
few days and will have access to all your funds. The account was
earning 7.3 percent for the first seven years, but then the rates
went down to 5.5 percent for six years. Your account then earned
8.2 percent three years in a row. Unfortunately, the next two years
you earned only 4.6 percent....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 3 minutes ago

asked 16 minutes ago

asked 39 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago