Question

1. Andrew and Emma Garfield invested $6,800 in a savings account paying 5% annual interest when their daughter, Angela, was born. They also deposited $1,500 on each of her birthdays until she was 14 (including her 14th birthday).
How much was in the savings account on her 14th birthday (after the last deposit)? (Round answer to 2 decimal places, e.g. 25.25.)

2. Gleason Enterprises issued 8%, 6-year, $2,400,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2020, and are issued on that date. The discount rate of interest for such bonds on April 1, 2020, is 10%.
What cash proceeds did Gleason receive from issuance of the bonds? (Round answer to 0 decimal places, e.g. 125.)

Answer 1

1)

Hence, Value after 14 years was $42,861.48