Question
In: Finance
Natasha plans to deposit $4000 per year in her account for each of the next 4...
Natasha plans to deposit $4000 per year in her account for each of the next 4 years. Thereafter, she expects to deposit $1500 per year for another 4 years. All deposits are made at year-end. Interest rates are expected to be 8 percent for the next 2 years, and 11 percent thereafter. Interest is compounded annually. (a) What will Natasha's bank balance be at the end of year 8? (b) How much would Natasha have to deposit as a lump sum today in order to accumulate the same bank balance at the end of year 8?
Solutions
jeff jeffy answered 8 months agoRelated Solutions
deposit $10,000 per year into an account at the end of each of the next 4...
deposit $10,000 per year into an account at the end of each of
the next 4 years, and $15,000 into the account each year for the
following 6 years. How much money will you have in the account at
the end of the 10th year? Assume that we earn 10 percent nominal
interest compounded annually on our investments.
A. $76,319.18
B. $197,972.30
C. $130,000.00
D. $89,174.29
E. Something Else
1. Assume that you will deposit $4000 at the end of each of the next three...
1. Assume that you will deposit $4000 at the end of each of the
next three years in a St. George bank account paying 8% interest.
You currently have $7000 in the account. How much will you have in
three years? In four years?
2. You are looking into an investment that will pay you $12,000
per year for the next 10 years. If you require a 15% return, what
is the most you would pay for this investment?
3....
Lauren plans to deposit $5000 into a bank account at the beginning of next month and...
Lauren plans to deposit $5000 into a bank account at the
beginning of next month and $200/month into the same account at the
end of that month and at the end of each subsequent month for the
next 5 years. If her bank pays interest at the rate of 3%/year
compounded monthly, how much will Lauren have in her account at the
end of 5 years? (Assume that no withdrawals are made during the
5-year period)
Lauren plans to deposit $9000 into a bank account at the beginning of next month and...
Lauren plans to deposit $9000 into a bank account at the
beginning of next month and $150/month into the same account at the
end of that month and at the end of each subsequent month for the
next 4 years. If her bank pays interest at a rate of 5%/year
compounded monthly, how much will Lauren have in her account at the
end of 4 years?
(Assume she makes no withdrawals during the 4-year period. Round
your answer to the...
Alexandra plans to deposit $1,000 into a fund at the end of each of the next...
Alexandra plans to deposit $1,000 into a fund at the end of each
of the next eight years. If her fund earns 4.75 percent compounded
annually, how much will she have at the end of eight years?
A. $8,340
B. $8,525
C. $8,856
D. $9,297
E. $9,464
Randolph will receive a 20-year annuity with annual payments of
$150. The first payment will be received at the end of Year 1, and
the last payment will be received at the end...
derek will deposit $1,999 per year for 15 years into an account that earns 4% ....
derek will deposit $1,999 per year for 15 years into an account
that earns 4% . Assuming the first deposit is made 4 years from
today, how much will be in the account 38 years from today?
Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective...
Starting next year you plan to deposit $1000 each year into an
account earning 9.25% effective annual return. How many years will
it take for your account to grow to $20,000, if you increase your
deposit each year by 5%? (Hint: use excel goal seek).
Enter answer in years, rounded to the nearest first decimal, as
in "4.6" years
Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective...
Starting next year you plan to deposit $1000 each year into an
account earning 9.25% effective annual return. How many years will
it take for your account to grow to $20,000, if you increase your
deposit each year by 5%? (Hint: use excel goal seek).
Enter answer in years, rounded to the nearest first decimal, as
in "4.6" years
Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective...
Starting next year you plan to deposit $1000 each year into an
account earning 9.25% effective annual return. How many years will
it take for your account to grow to $20,000, if you increase your
deposit each year by 5%? (Hint: use excel goal seek).
Enter answer in years, rounded to the nearest first decimal, as
in "4.6" years
You deposit $1,500 into an account that pays 4% per year. Your plan is to withdraw...
You deposit $1,500 into an account that pays 4% per year. Your
plan is to withdraw this amount at the end of 5 years to use for a
down payment on a new car. How much will you be able to withdraw at
the end of 5 years? Do not round intermediate calculations. Round
your answer to the nearest cent.
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