One year ago, the Jenkins Family Fun Center deposited $4,900 into an investment account for the...

One year ago, the Jenkins Family Fun Center deposited $4,900 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,700 to this account. They plan on making a final deposit of $8,900 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent?

Expert Solution


Time	Opening Balance	Deposit	Total Balance	Interest	Closing Balance
1.00	-	4,900.00	4,900.00	294.00	5,194.00
2.00	5,194.00	6,700.00	11,894.00	713.64	12,607.64
3.00	12,607.64	8,900.00	21,507.64	1,290.46	22,798.10
4.00	22,798.10		22,798.10	1,367.89	24,165.98

Amount available when ready to buy the equipment	24,165.98

jeff jeffy answered 1 year ago

A. Two years ago, you opened an investment account and deposited $6,000. One year ago, you...

A. Two years ago, you opened an investment account and deposited $6,000. One year ago, you added another $2,100 to the account. Today, you are making a final deposit of $8,000. How much will you have in this account 3 years from today if you earn a 14.10 percent rate of return? B. How much more current value does a perpetuity of $250 a year have as compared to an annuity of $250 a year for 50 years given an...

Suppose 10 year ago your mother deposited $3400 in an investment account earning 5% a year....

Suppose 10 year ago your mother deposited $3400 in an investment account earning 5% a year. After 3 years she withdrew $1,122. There were no additional deposits or withdrawals. Obtain today's value of the investment account? A. $4,239.39 B. $3,959.48 C. $,416.24 D. $3,710.62

1. One year ago, XYZ deposited $5,400 in an account that has earned and will earn...

1. One year ago, XYZ deposited $5,400 in an account that has earned and will earn 12.3% per year in compound interest. If PQR deposits $8,700 in an account in 3 years from today that earns simple interest, then how much simple interest per year must PQR earn to have the same amount of money in 7 years from today as XYZ will have in 7 years from today? Answer as an annual rate. A. A rate less than 6.00%...

one year ago, LMN deposited $5,400 in an account that has earned and will esrn 12.3%...

one year ago, LMN deposited $5,400 in an account that has earned and will esrn 12.3% pet year in compound interest. If AQZ deposits $8,700 in an account in 3 years from today that earns simple interest, then how much simple interedt per year must AQZ earn to have the same amount of money in 7 years from today as LMN will have in 7 years from today? Answer as an annual rate. A a rate lesd than 6.00% or...

A year ago, you deposited $30,000 into a retirement savings account at a fixed rate of...

A year ago, you deposited $30,000 into a retirement savings account at a fixed rate of 5.5 percent. Today, you could earn a fixed rate of 6.5 percent on a similar type account. However, your rate is fixed and cannot be adjusted. How much less could you have deposited last year if you could have earned a fixed rate of 6.5 percent and still have the same amount as you currently will when you retire 38 years from today?

Two years ago you deposited $705 into an new investment account that earns interest every month....

Two years ago you deposited $705 into an new investment account that earns interest every month. What is the interest rate needed, expressed as an APR (compounded monthly), if the account will have twice as much money three years from today (i.e., the balance will have doubled from your initial deposit). Enter your answer in decimal format, rounded and expressed to the nearest 4 decimal places (e.g., 0.12345 should be entered as 0.1235 and not anything else).

Ten years ago, you deposited $2,500 into an account. Five years ago, you added an additional...

Ten years ago, you deposited $2,500 into an account. Five years ago, you added an additional $2,500 to his account. You earned 8 percent for the first 5 years and 12 percent for the last 5 years, both compounded annually. How much money do you have in your account today?

Twenty years ago, you deposited $1,000 into an account. Fifteen years ago, you added an additional...

Twenty years ago, you deposited $1,000 into an account. Fifteen years ago, you added an additional $3,000 to your account. You earned 6 percent, compounded annually, for the first 5 years and 10 percent, compounded annually, for the last 15 years. How much money do you have in your account

Eleven years ago, you deposited $3,200 into an account. Seven years ago, you added an additional...

Eleven years ago, you deposited $3,200 into an account. Seven years ago, you added an additional $1,000 to this account. You earned 9.2 percent, compounded annually, for the first 4 years and 5.5 percent, compounded annually, for the last 7 years. How much money do you have in your account today? $8,666.67 $7,717.29 $7,411.90 $8,708.15 $8,073.91

Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an...

Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: a. What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? b. How much money do you have in your account today? c. If you wish to have $85 000...

Question