Your grandmother has been putting $ $4000$ into a savings account on every birthday since your first$($that is$,$ when you turned one$).$ The account pays an interest rate of $9\%.$ How much money will be in the account immediately after your grandmother makes the deposit on your $18$th birthday

The amount in the account upon your $18$th birthday is $$.......($Round to the nearest dollar.$)$  Part $2$  Your cousin is currently $12$ years old. She will be going to college in $6$ years. Your aunt and uncle would like to have $ $115,000$ in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of $4\mathrm{.}1\%$ per year, how much money do they need to put into the account today to ensure that they will have $ $115,000$ in $6$years$?$  The amount they need to put away today is $$....($Round to the nearest cent $)$ 

Part $3$

You are offered the right to receive $$$$1$ comma $000$ per year$$ forever, starting in one year. If your discount rate is $5\%,$ what is this offer worth to$$ you? this offer is worth $$.......($Round to the nearest cent$)$

Answer rating: 100% (QA)

Part 1 To calculate the amount in the account immediately after your 18th birthday we need to calcul... View the full answer