× 2. You make an initial deposit of P dollars into each of two accounts with...
3. Suppose you have money invested in a savings monthly. You also make a deposit of D dollars once each month, and you make a withdrawal of P percent of the balance each month. (a) Sketch a compartmental diagram for the amount of money in the account. (b) Write a difference equation (or recurrence relation) for this model (c) Find the fixed points (d) Suppose that r=0.03 and P 0.07 . Find the amount D that you should deposit each...
Question 17 An employee's retirement plan pays 500 dollars at the end of each month into an account that earns 4.8% yearly interest compounded monthly. What is the future value of this ordinary annuity after 20 years? Round to nearest dollar. Question 18 An employee's retirement plan pays 500 dollars at the end of each month into an account that earns 4.8% yearly interest compounded monthly. What is the future value of this ordinary annuity after 20 years? Round to...
1. You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10 years, you would like to receive $2400 at the end of every 3 months for 8 years. How much of your winnings must you set aside if interest is 5.5% compounded quarterly? 2. A sum of money is deposited at the end of every month for 10 years at 7.5% compounded monthly. After the last deposit, interest...
Functions 1. You are presented with two investment strategies for the next ten years. In strategy A, you deposit $300 into an account at the end of each month for the next four years, then allow the account to accumu- late interest for the remaining six years. In strategy B, you do nothing for five years and then deposit $300 at the start of each month for the remaining five years. In both cases, interest is paid at the rate...
Question 8 0/9 pts Leona opens a savings account with an initial deposit of $150. She then deposits $150 into that savings account at the end of every subsequent month. This savings account pays an annual interest rate of 3.6% and is compounded monthly. How much does Leona have in her account at the end of each of the first 3 years? not ((1+5)* - 1 B(t)= P. (5) Round your answer to the nearest penny. Input the dollar sign...
1. You deposit $400 each month into an account earning 7% interest compounded monthly. a) How much will you have in the account in 35 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $ 2. Suppose you want to have $300,000 for retirement in 35 years. Your account earns 8% interest. a) How much would you need to deposit in the account each month? $ b)...
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...
2. A retirement account is opened with an initial deposit of $6,500 and earns 9.16% interest compounded monthly. What will the account be worth in 45 years? (Round your answer to the nearest cent.)
1.)You make a deposit of $46 each year for 40 years in an account that earns a simple interest rate of 6% per year. If you make the first deposit today, the future value of the deposits in 90 years will be:$___________ 2.)How will you enter 10% in a computational formula (not in a financial calculator)? 3.)At what rate of interest will an amount triple in 50 years? Enter your answer as decimals, not percentages (e.g., enter 0.01 instead of...
The good news - saving $10 per month We continue with the same example: you deposit $10 per month into a savings account with an annual interest rate of 30%, compounded monthly. Use your formula f(r) to answer the following questions. (a) Determine the amount in the account after 1 year. How much is interest? (b) Determine the amount in the account after 10 years. How much is interest? (c) Determine the amount in the account after 45 years. How...