- Alice wants to have $90,000 ten years from now. If her bank is paying 4.12% and compounds weekly, how much money must she deposit today?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 13PROB
icon
Related questions
Question

Answer part second.

Thanks

-1
F = D
F-14 Compound
Interest Formula
Annuity
1. Ralph has decided to deposit $400 into his savings account each month, His bank is paying 2.1170
compounded monthly. How much money will he have in his account 12 years from today?
2. Alice wants to have $90,000 ten years from now. If her bank is paying 4.12% and compounds
weekly, how much money must she deposit today?
Transcribed Image Text:-1 F = D F-14 Compound Interest Formula Annuity 1. Ralph has decided to deposit $400 into his savings account each month, His bank is paying 2.1170 compounded monthly. How much money will he have in his account 12 years from today? 2. Alice wants to have $90,000 ten years from now. If her bank is paying 4.12% and compounds weekly, how much money must she deposit today?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Public Issue
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
EBK CFIN
EBK CFIN
Finance
ISBN:
9781337671743
Author:
BESLEY
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage