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please solve these 5 parts of the question Question no 01: 1 A person wishes to deposit $5,000 per year in a savings account which
please solve these 5 parts of the question
Question no 01: 1 A person wishes to deposit $5,000 per year in a savings account which earns interest of 8 percent per year compounded annually. Assume the first deposit is made at the end of this current year and additional deposits at the end of each following year. (a) To what sum will the investment grow at the time of the 10th deposit? (b) How much interest will be earned? 2 A company wants to deposit $500,000 per year in an investment which earns interest of 10 percent per year compounded annually. Assume the first deposit is made at the end of the current year and additional deposits at the end of each following year. (a) To what sum will the investment grow at the time of the 10th deposit? (b) How much interest will be earned? 3 A mother wishes to set up a savings account for her son's education. She plans on investing $750 when her son is 6 months old and every 6 months thereafter. The account earns interest of 8 percent per year, compounded semiannually. (a) To what amount will the account grow by the time of her son's 18th birthday? (6) How much interest will be earned during this period? 4 A local university is planning to invest $500,000 every 3 months in an investment which earns interest at the rate of 12 percent per year compounded quarterly. The first invest- ment will be at the end of this current quarter. (a) To what sum will the investment grow at the end of 5 years? (6) How much interest will be earned during this period? 5 A person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate of 10 percent per year, compute the amount to which the deposits will grow by the end of the 6 years if: (a) Deposits of $10,000 are made at the end of each year with interest compounded annually. (6) Deposits of $5,000 are made at the end of each 6-month period with interest com- pounded semiannually. (c) Deposits of $2,500 are made at the end of every quarter with interest compoundedStep by Step Solution
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