. Assume that Randall Ezno was born today and to celebrate his birth, his parents deposited...

. Assume that Randall Ezno was born today and to celebrate his birth, his parents deposited $10,000 into an account in his name. The account pays interest of 2.35 percent p.a., with monthly compounding, and it is expected to continue paying this amount forever. Assume that exactly 1.5 years after the deposit was made, Randall’s parents changed their minds and withdrew $10,000 from the account (all that remained in the account was the interest earned in the first 18 months). How much money will be in Randall’s account on his 65th birthday?

Solutions

Expert Solution

Colby Messinger answered 1 year ago

Next > < Previous

Related Solutions

your wonderful parents established a college savings plan for you when you were born. They deposited...

your wonderful parents established a college savings plan for you when you were born. They deposited $50 into the account on the last day of each month. The account has earned 10% compounded monthly. Now you are off to Monash university. What equal amount can they withdraw beginning today (your 18th birthday) and each year for 4 years to spend on your education, assuming that the account now earns 7% annually?

On the day Harry was born, his parents put $1600 into an investment account that promises...

On the day Harry was born, his parents put $1600 into an investment account that promises to pay a fixed interest rate of 5percent per year. How much money will Harry have in this account when he turns 21?Round to two decimal places.

On Lorenzo’s first birthday, his parents deposited $5,500 into asavings account that earns a fixed...

On Lorenzo’s first birthday, his parents deposited $5,500 into a savings account that earns a fixed rate of 5.50% and compounds interest annually. How much money will Lorenzo’s account have accumulated by his 18th birthday? (Hint: Round your answer to the nearest dollar.)$8,441$55,000$14,418$13,666What-If Scenario 1What would have been the balance in Lorenzo’s account if his parents had waited until his 10th birthday to make their initial deposit into the same account?$13,666$55,000$14,418$8,441What-If Scenario 2If Lorenzo’s parents wanted to accumulate an account...

On Hubert’s first birthday, his parents deposited $12,000 into a savings account that earns a fixed...

On Hubert’s first birthday, his parents deposited $12,000 into a savings account that earns a fixed rate of 8.50% and compounds interest annually. How much money will Hubert’s account have accumulated by his 21st birthday? (Hint: Round your answer to the nearest dollar.) $29,438 $61,344 $66,559 $120,000 What-If Scenario 1 What would have been the balance in Hubert’s account if his parents had waited until his 10th birthday to make their initial deposit into the same account? $66,559 $120,000 $61,344...

a)When your father was born 47 years ago, his grandparents deposited $175 in an account for...

a)When your father was born 47 years ago, his grandparents deposited $175 in an account for him. Today, that account is worth $1,900. What was the annual rate of return on this account? 5.21 percent 5.00 percent 4.86 percent 3.89 percent 5.73 percent 1)Todd can afford to pay $390 per month for the next 7 years in order to purchase a new car. The interest rate is 6.8 percent compounded monthly. What is the most he can afford to pay...

Bryan Mejia was born with only one leg and no arms. His parents, Ana Mejia and...

Bryan Mejia was born with only one leg and no arms. His parents, Ana Mejia and Rodolfo Santana, have accused Marie Morel, MD, and OB/GYN Specialists of the Palm Beaches and Perinatal Specialists of the Palm Beaches of negligence for not properly detecting their son's defect and disability through ultrasound scans before he was born. They said they would have aborted their son if they had known he would have only one limb. The parents sued the physician and the...

At birth, Baby Joe appeared to be a normal, healthy baby boy. Both of his parents...

At birth, Baby Joe appeared to be a normal, healthy baby boy. Both of his parents were in their late twenties and were healthy as well. At four weeks of age, Joe developed a middle-ear infection (called otitis media). He suffered from recurrent ear infections over the next three months, which required antibiotic treatment. Joe’s pediatrician recommended placing tubes in Joe’s ears to provide drainage of the fluid resulting from the infections. Cultures of the drainage fluid showed the presence...

A researcher is interested in the effects of birth order (first born versus later born) on...

A researcher is interested in the effects of birth order (first born versus later born) on achievement in a group of middle school boys and girls. The researcher believes that birth order has a differential effect on achievement in boys and girls. Data were collected on a standardized test taken by all students (both boys and girls) in the 8th grade (higher scores indicate greater achievement). The data are given below: Only child, boys: 93,92,94 Only child, girls: 88,89,90...

Ray borrows $9,325from his parents today to start his own car rental business andagrees...

Ray borrows $9,325 from his parents today to start his own car rental business and agrees to pay back the borrowed amount together with five-year worth interest payment in 5 years at 7.43% interest rate per year.How much does Ray need to pay back the loan after 5 years?

Your son Tommy was just born today (Year 0), and you are plannjng for his college...

Your son Tommy was just born today (Year 0), and you are plannjng for his college education. You would like to make equal depostis every 26 weeks into a college savings account starting in Year 1 and ending in Year 21 (41 deposits), so that Tommy can make annual withdrawala in Year 18, 19, 20, and 21 for tuition. Tuition is currently (Year 0) $2500/year, and it is expected to grow at 4%/year for each of the next 10 years,...

Subjects