Question
1.On July 1, 2023, you deposit $2685 in Everfaithful Bank, which will pay you interest of 4% per year. How much money will you have
1.On July 1, 2023, you deposit $2685 in Everfaithful Bank, which will pay you interest of 4% per year. How much money will you have on July 1, 2027?
2.You deposit $2685 at the end of each of the next four years in Everfaithful Bank, which will pay you interest of 5% compounded annually. How much will you have at the end of the four years?
3.What yearly investment is necessary over 30 years to retire with $268541.00 if you open an account paying 10% annual interest with an initial investment of $10,000? (If BCDEFG is less than $10,000, then add $100,000 to it.)
4.A client states that he will retire when he has $268,541.00 in his retirement account. Assuming he can contribute $15,500 per year and earn 8 percent compounded annually, how long will it take to reach his goal? (If BCDEFG is less than $15,500 then add $100,000.)
5.Mark's grandmother has offered to give him $2,541 in five years. Or, he can take $1,841 now. Or, he can get $441 at the end of each of the next five years. If money is worth 5% compounded annually to Mark, rank the offers. (Hint: this is three questions in one - how can you compare the offers fairly?)
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