Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me solve these two questions: The local electronics store is offering a promotion 1-year: same as cash, meaning that you can buy a

Please help me solve these two questions:

image text in transcribedimage text in transcribed

The local electronics store is offering a promotion "1-year: same as cash," meaning that you can buy a TV now, and wait a year to pay (with no interest). So, if you take home a $1,250 TV today, you will owe them $1,250 in one year. If your bank is offering 4% interest, what is the true cost of the TV to you today? The true cost of the TV to you today is $ (Round to the nearest cent.) Your grandfather put some money in an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $6,169 in it and pays an 11% interest rate. a. How much money would be in the account if you left the money there until your 25 th birthday? b. What if you left the money until your 65 th birthday? c. How much money did your grandfather originally put in the account? a. How much money would be in the account if you left the money there until your 25 th birthday? The amount that would be in the account if you left the money there until your 25 th birthday would be $ (Round to the nearest dollar.) b. What if you left the money until your 65 th birthday? If you left the money in the account until your 65 th birthday, the future value would be $ (Round to the nearest dollar.) c. How much money did your grandfather originally put into the account? The amount of money your grandfather originally put into the account was $. (Round to the nearest dollar.)

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

Finance For Freelancers Financial Intelligence

Authors: Andrew Holmes

1st Edition

1408101165, 978-1408101162

More Books

Students also viewed these Finance questions

Question

Describe the seven standard parts of a letter.

Answered: 1 week ago

Question

Explain how to develop effective Internet-based messages.

Answered: 1 week ago

Question

Identify the advantages and disadvantages of written messages.

Answered: 1 week ago