ZuoTi.Pro
Question

Lifetime savings accounts, known as LSAs, allow people to invest after-tax money without being taxed on...

Lifetime savings accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $12,000 now and $12,000 each year for the next 15 years, how much will be in the account immediately after the last deposit, provided the account grows by 8% per year?

After the last deposit, the balance in the account will be $

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

FV = PV(1+r)^n

Year Amount deposited Annuity factor Future Value
0 12000 3.172169114 38066.02937
1 12000 2.937193624 35246.32349
2 12000 2.719623726 32635.48471
3 12000 2.518170117 30218.0414
4 12000 2.331638997 27979.66796
5 12000 2.158924997 25907.09997
6 12000 1.999004627 23988.05553
7 12000 1.85093021 22211.16252
8 12000 1.713824269 20565.89123
9 12000 1.586874323 19042.49188
10 12000 1.469328077 17631.93692
11 12000 1.36048896 16325.86752
12 12000 1.259712 15116.544
13 12000 1.1664 13996.8
14 12000 1.08 12960
15 12000 1 12000
Balance in account after last deposit 363891.3965

Therefore after the last deposit balance in account would be $363891.3965

0 0
Add a comment
Know the answer?
Add Answer to:
Lifetime savings accounts, known as LSAs, allow people to invest after-tax money without being taxed on...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Lifetime savings accounts, known as LSAs, allow people to invest after-tax money without being taxed on...

    Lifetime savings accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $18,000 now and $18,000 each year for the next 15 years, how much will be in the account immediately after the last deposit, provided the account grows by 12% per year? After the last deposit, the balance in the account will be $

  • rk 3 Help Save Lifetime savings accounts, known as LSAs, allow people to invest after-tax money...

    rk 3 Help Save Lifetime savings accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $16,000 now and $16,000 each year for the next 13 years, how much will be in the account immediately after the last deposit, provided the account grows by 11% per year? After the last deposit, the balance in the account will be $ < Prey 5 of 10 Next > a o...

  • Hi, Could you solve/fill the blank? Thanks a lot Lifetime savings accounts, known as LSAs, allow...

    Hi, Could you solve/fill the blank? Thanks a lot Lifetime savings accounts, known as LSAs, allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $16,000 now and $16,000 each year for the next 14 years, how much will be in the account immediately after the last deposit, provided the account grows by 10% per year? After the last deposit, the balance in the account will be $D . How much money...

  •  Tilly would like to invest ​$3,000 in​ before-tax income each year in a retirement account or...

     Tilly would like to invest ​$3,000 in​ before-tax income each year in a retirement account or in stock investments outside the retirement account. Tilly likes the stock investments outside the retirement account because they provide her with more flexibility and a potentially higher return. Tilly would like to retire in 25years. If she invests money in the retirement​ account, she can earn 7​% annually. If she invests in stock outside the​ account, she can earn 8​% annually. Tilly is in...

  • 3. There is a commercial on TV right now that says many people spend more money...

    3. There is a commercial on TV right now that says many people spend more money on their morning Starbucks than they invest in their retirement savings. Let's say you stop at Starbucks every morning on the way to school and buy a $6 cup of fancy coffee. Assuming, for simplicity, that there are 30 days in a month, that's $180 per month you could be investing in your retirement. If you deposit $180 per month into a savings account...

  • d. 12% nominal rate, monthly compounding 2. You plan to invest an amount of money in...

    d. 12% nominal rate, monthly compounding 2. You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded annually. How much must you invest if you want the balance in the CD account to be $8,500 in five years? 3. You deposited $1,000 in a savings account that pays 8 percent interest, compounded annually, planning to use it to finish your last...

  • 7) Sandra invested $10,000 in a Tax-Free Savings Account (TFSA) last year and it has a...

    7) Sandra invested $10,000 in a Tax-Free Savings Account (TFSA) last year and it has a value of $12,000 today. She also invested $10,000 in a Registered Retirement Savings Account (RRSP) last year and it has a value of $15,000 today. With the market uncertainty today, Sandra decides to withdraw the entire amounts from both accounts. On what amounts will Sandra need to pay tax on? a) Only on the initial $20,000 invested in each account b) On the total...

  • After being drafted in the first round of the NFL draft, a star defensive end invests...

    After being drafted in the first round of the NFL draft, a star defensive end invests his signing bonus of $9,120,500.00 in a mutual fund. The fund pays on average 7.00% APR. The player will not touch this money until he retires from the league in 15.00 years. How much will this “nest egg” be worth at retirement? A very careful new father wants to set money aside for his baby daughter’s wedding. If the wedding takes place in 23.00...

  • 1. You have $200 to invest. If you put the money into an account earning 4​%...

    1. You have $200 to invest. If you put the money into an account earning 4​% interest compounded​ annually, how much money will you have in 10 years? How much money will you have in 10 years if the account pays 4​% simple​ interest? 2. You have $1,300 to invest today at 5​% interest compounded annually. a.  Find how much you will have accumulated in the account at the end of​ (1) 6 ​            years, (2) 12 years, and​ (3)...

  • Macroeconomics When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from th

    When taxes induce people to change their behaviour—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.Consider a...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT