Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Two years ago my daughter was born. On the day she was born I put $4000 into an account for her. The account earned i%
Two years ago my daughter was born. On the day she was born I put $4000 into an account for her. The account earned i% annually (you'll need to find out what that interest rate is). That interest rate on the account will be fixed until she turns 9, at which point I will transfer whatever is in that account into a new one which is expected to earn 6% per year, and then I'll leave that money in that account until her 16th birthday. I plan to take her to Italy to visit her Nona when she turns 12. I expect that trip to cost $6000 and I intend to withdraw that amount from the account. On her 16th birthday her account has a positive balance of $622. Find the interest rate of her initial account. 1-2% O2-3% 3-4% 4-5% None of the above You deposit $10k into an account for 2 years that pays 6% APR compounded monthly. After the 2 years you withdraw the funds from that account and deposit them into another account that pays 12% APR compounded weekly. You leave the money in there for 2 years and then after that you withdraw the funds. Then your mom gives you $5000, and you deposit all of that into an account that pays 6% per year for 3 years. What do you have in the account at the end (within $20)? 23,016 23,056 23,096 23.136 None of the above
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