Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Karissa's grandparents set up an account for her college fund. They will invest $7,400.00 paid at the end of each quarter for 18 years that
Karissa's grandparents set up an account for her college fund. They will invest $7,400.00 paid at the end of each quarter for 18 years that has an interest rate of 5.4%, compounded quarterly. After 9 years the grandparents sold their business and made a lump sum deposit to the annuity of $44,000.00 in addition to the continuation of 9 years of regular deposits. How much is in the account at the end of the 18 years? (Round to 2 decimal places.) Find how much was deposited into the annuity, that is, the total amount deposited without including interests. How much was deposited into the annuity? (Round to 2 decimal places.) Once the annuity matured, Karissa decided to withdraw from the annuity quarterly payments for 5 years paid at the end of each quarter. If the interest rate did not change, what would the quarterly payment amount be? The quarterly payments are (Round to 2 decimal places.) Find the total amount that Karissa will be paid, that is, the total amount he will receive from all the withdrawals without considering interests. What will the total amount that Karissa will be paid? (Round to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started