Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose at the time of your birth, 21 years ago, your father deposited $1,600 in an account at an annual interest rate of 11 percent.

image text in transcribed

Suppose at the time of your birth, 21 years ago, your father deposited $1,600 in an account at an annual interest rate of 11 percent. How much money would exist in that account today? Round your final answer to two decimals places Question 2 2 pts Suppose Mr. Smith contracted with Roles Rice, Inc., to take delivery on a car in four years for $142,500. An initial deposit of $34,000 has been paid at the time of the contract, and the rest will be paid at the time of delivery (four years from now). Mr. Smith went to his bank and deposited a sum, $A. He made a promise to himself that he would withdraw half the accumulated amount from this account each year. At the time of delivery, there must be exactly $108,500 in the account to pay for the car. How much money must Mr. Smith deposit in his account to have the required amount at the time of delivery? (Assume a 13 percent annual interest rate.) Round your final answer to two decimal places. See Example 4.3 if you haven't already. Question3 2 pts In how many years will $100 grow to $1,000 at annual rates of interest of 24%? Round your final answer to the larger integer. (9.3 years means 10 years)

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

Warren Buffett In A Web3 World

Authors: Matthew Snider ,Steven Teplitz

1st Edition

979-8987237717

More Books

Students also viewed these Finance questions