Joe is planning to invest the following amounts at 5% interest. How much money will he...

Joe is planning to invest the following amounts at 5% interest. How much money will he have saved at the end of year 3?

End of Year	Amount Saved
1	$700
2	$600
3	800$

Solutions

Expert Solution

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=700*(1.05)^2+600*(1.05)+800

=$2201.75

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Tom is planning to invest the following amounts at 4 percent interest. How much money will he have saved at the end of year 3?

1.Tom is planning to invest the following amounts at 4 percent interest. How much money will he have saved at the end of year 3?End of year:Amount saved:1$5002$8003$900 Group of answer choices$2,200.00$2,238.47$2,272.80$2,309.16$2,363.712.Which of the following statements is false?Group of answer choicesA dollar today is worth more than a dollar tomorrow.A safe dollar is worth more than a risky dollar.For a given r (or I), as t (or N) increases, PV increases.An ordinary annuity and a perpetuity are both a series of...

if you invest $20 in a savings account tha pays 5% interest how much money will...

if you invest $20 in a savings account tha pays 5% interest how much money will you have in 4 years if you make no additional deposits

1. Suppose Joe Sixpack would like to make a decision about how much he should invest...

1. Suppose Joe Sixpack would like to make a decision about how much he should invest in his health based on the Grossman’s model (1972) and human capital theory. a. Fill out the table above by assuming the initial wage level (W1) of $100. Given total cost of (health) capital (C) of $2,500 (including visits to doctor’s office, medicine, daily exercise, and vitamin supplements) and 7 percent depreciation rate (?) and 5 percent real interest rate (r), calculate the optimum...

1. How much money should you invest today at 8% interest to get it to increase...

1. How much money should you invest today at 8% interest to get it to increase to $ 15,000 in 10 years? 2. What annual interest rate will make $ 500 increase to $ 1,948 in 12 years? 3. Suppose you have won the lottery. You will be receiving $ 72,000 at the end of each year for the next 20 years. Now it turns out that a financial firm offers you the total amount of $ 650,000 at the...

How much money should Shelby invest today in a fund that earns interest at 4.02% compounded...

How much money should Shelby invest today in a fund that earns interest at 4.02% compounded quarterly, if she wants to receive $5,750 at the end of every 6 months for the next 4 years? Round to the nearest cent

Ed Moura has $88000 invested in stocks paying 8%. How much additional money should he invest...

Ed Moura has $88000 invested in stocks paying 8%. How much additional money should he invest in certificates of deposit paying 3% so that the average return on the two investments is 4%?

a) Suppose $600 is invested at 5% interest, compounded quarterly for 2.5 years. How much money...

a) Suppose $600 is invested at 5% interest, compounded quarterly for 2.5 years. How much money is in the account after 2.5 years? b) How much shoukd you pay each year for 15 years into an ordinary annuity that pays 3.15% interest compunsed annually so that at the end, you have $43,000 in the account? c) A building manager sets up a sinking fund so that there is enough money when the HVAC system needs to be replaced in 6...

1. You plan to invest $3,500 for seven years at 5 percent simple interest. How much...

1. You plan to invest $3,500 for seven years at 5 percent simple interest. How much will you have in your investment account at the end of the seven-year period? A. $4,725.00 B. $4,511.62 C. $3,680.00 D. $8,725.00 E. $4,234.78 2. Stanley has $1,250 today and wants to accumulate $3,000. How many years will it take him to achieve this goal if the applicable interest rate is 5.25 percent, compounded annually? A. 12.54 B. 17.11 C. 1.58 D. 25.98 E....

you invest 85,000 today in money market. How much will it be worth at the beggining...

you invest 85,000 today in money market. How much will it be worth at the beggining of the 6th year? The appropriate discount rate is 8% compounded quarterly

Starting at age 20, how much money will randy have to invest each month into a...

Starting at age 20, how much money will randy have to invest each month into a Roth IRA in order to have a million dollars by age 65 ? His starting balance is zero

Subjects