Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) In order to accumulate enough money for a down payment on a house, a couple deposits $281 per month into an account paying 6%

a)

In order to accumulate enough money for a down payment on a house, a couple deposits $281 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 4 years?

What is the amount in the account after 4 years? $______ (Round to the nearest cent as needed.)

b)

Starting at age 50, a woman puts $1600 at the end of each quarter into a retirement account that pays 7% interest compounded quarterly. When she reaches age 60, she withdraws the entire amount and places it in a mutual fund account that pays 9% compounded monthly. From then on she deposits $200 in the same mutual fund at the end of each month. How much is in the account when she reaches age 65?

At age 65 she has $______.

(Simplify your answer. Type an integer or a decimal. Round intermediate steps to the nearest cent. Round the final answer to the nearest dollar if needed.)

c)

Ingrid wants to buy a $16,000 car in 6 years. How much money must she deposit at the end of each quarter in an account paying 5.1% compounded quarterly so that she will have enough to pay for her car?

How much money must she deposit at the end of each quarter? $______ (Round to the nearest cent as needed.)

d)

A man deposits $19,000 at the beginning of each year for 16 years in an account paying 5% compounded annually. He then puts the total amount on deposit in another account paying 9% compounded semiannually for another 15 years. Find the final amount on deposit after the entire 31-year period.

He will have a final amount of $______ after the entire 31-year period. (Simplify your answer. Round to the nearest cent as needed.)

please answer all missing blanks, Thank you!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Sustainable Finance

Authors: Dirk Schoenmaker, Willem Schramade

1st Edition

0198826605, 978-0198826606

More Books

Students also viewed these Finance questions

Question

=+What kind of question would you ask to encourage their response?

Answered: 1 week ago

Question

=+Does it keep the visitor reading?

Answered: 1 week ago