An individual makes six annual deposits in a savings account starting one year from now that...

An individual makes six annual deposits in a savings account starting one year from now that pays interest at a rate of 10% compounded quarterly. Ten years after the last deposit, a withdrawal of $10,000 per year for 10 years is withdrawn from the account. How much would be the six annual deposits? Solve step by step and draw cash flow diagram.

Solutions

Expert Solution

Ally Wells answered 9 months ago

Next > < Previous

Related Solutions

Mary makes 10 annual deposits of $1000 each into an account. Beginning one year after the...

Mary makes 10 annual deposits of $1000 each into an account. Beginning one year after the first deposit she receives a check for 6% of the value of this account. She deposits these checks into an account that earns interest at 4%. Find the total value of her accounts one year after she makes the last $1000 deposit.

Mary made five annual deposits of $8000 in a savings account that pays interest at a...

Mary made five annual deposits of $8000 in a savings account that pays interest at a rate of 6% per year. One year after making the last deposit, the interest rate changed to 15% per year. Five years after the last deposit, how much accumulated money can she withdraw from the account?draw the cash flow diagram.

A) Assume that you wish to make annual deposits into a savings account. The interest rate...

A) Assume that you wish to make annual deposits into a savings account. The interest rate offered by the bank is 11%, and you plan to save for the next 12 years. If your goal is for the present value of your savings to be equal to $4,058, how much money must you deposit every year? B) Assume you've just received a bonus at work of $3,812. You deposit that money in the bank today, where it will earn interest...

a) Jasmine makes quarterly deposits of $1,000 into a savings account that pays 4 percent compounded...

a) Jasmine makes quarterly deposits of $1,000 into a savings account that pays 4 percent compounded monthly. How much money will she have in her account in 25 years? Jasmine makes monthly deposits of $1,000 into an investment account that pays 4 percent compounded quarterly. How much money will she have in her account in 25 years? Gabriel deposits $1,000 at the beginning of each month into an investment account that pays 4 percent compounded monthly. How much money will...

Nemo deposits $7500 now, $5000 three years from now, and $1500 six years from now into...

Nemo deposits $7500 now, $5000 three years from now, and $1500 six years from now into a fund paying 8% compounded quarterly: What equal deposit of size A, made every 3 months (with the first deposit at t=0 and last deposit at the end of the 7th year) are equal to the 3 deposits?

An engineer has been making annual deposits of $5,000 for 10 years into a savings account...

An engineer has been making annual deposits of $5,000 for 10 years into a savings account earning 8% interest. He/she decides to take a mid-life mini-retirement, and withdraws $5,000 for the next 5 years from the savings account (end of years 11, 12, 13, 14, and 15). At the end of the 5 year retirement they return to the workforce and deposit $15,000 every year for the next 10 years (end of years 16,17,....25). What is the Value of the...

Starting at the end of this year, you plan to make annual deposits of $6,000 for...

Starting at the end of this year, you plan to make annual deposits of $6,000 for 4 years followed by annual deposits of $10,000 for the following 5 years. The deposits earn interest of 3.5%. What will the account balance be at the end of 13 years? a) $89,136 b) $92,507 c) $96,003 d) $99,628 e) $103,386

Starting at the end of this year, you plan to make annual deposits of $5,000 for...

Starting at the end of this year, you plan to make annual deposits of $5,000 for the next 10 years followed by deposits of $13,000 for the following 10 years. The deposits earn interest of 4.6%. What will the account balance be by the end of 33 years? Round to the nearest cent You are interested in buying a house and renting it out. You expect to receive a monthly net income of $1450 from rent. You then expect to...

Assume that 1 year from now you plan to deposit $1000 in savings account that pays...

Assume that 1 year from now you plan to deposit $1000 in savings account that pays a nominal rate of 8 %. a) If the bank compounds interest annually, how much will you have in your account 4 years from now? b) What would your balance be 4 years from now if the bank used quarterly compounding rather than annual compounding?

You deposit into a savings account $4,000 now and $2500 three years from now. Then, the...

You deposit into a savings account $4,000 now and $2500 three years from now. Then, the next year you withdraw $1000 and another $1000 the following year. Then, you get a bonus from your company and deposit $2,000 at the end of year 6, and make no deposits or withdrawals the rest of the planning horizon. The interest rates are 4% during the first two years, then drops to 3% during the following three years, and then to 2% until...

Subjects