On Juan’s 26th birthday, he invested $7,500 in a retirement account. Each year thereafter he deposited 8% more than the previous deposit. The account paid annual compound interest of 5%. How much was in the account immediately after his 35th deposit? what uniform annual investment is required to achieve the same account balance?

On Juan’s 26th birthday, he invested $7,500 in a retirement account. Each year thereafter he deposited 8% more than the previous deposit. The account paid annual compound interest of 5%. How much was in the account immediately after his 35th deposit? what uniform annual investment is required to achieve the same account balance?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 10PROB

See similar textbooks

Similar questions

Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
On Juan’s 26th birthday, he deposited $9,000 in a retirement account. Each year thereafter, he deposited $1,000 more than the previous year. Using a gradient series factor, determine how much was in the account immediately after his 35th deposit if: a)the account earned annual compound interest of 3.7% b)the account earned annual compound interest of 4.7% PLEASE show step by step to understand whats going on, in the simplest way of explaining.
Adriana wishes to accumulate $2,000,000 in 35 years. If 35 end-of-year deposits are made into an account that pays interest at a rate of 7%compounded annually, what size deposit is required each year to meet Adriana’s stated objective?
To prepare for an early retirement, a self-employed businessman makes deposits of $6200 at the begin of each half-year for 6 years, starting on his 40 birthday. When he is 53, he wishes to make 30 equal day withdrawals. What is the size of each withdrawal if interest is 7.21% compounded daily?
Andy invested a certain amount of money which he saves in account that earns 4% per year, compounded annually over a 15-year period. Starting in year 16, he begins making equal annual withdrawals $3500 for thenext 10 years. Assuming Andy's account is fully depleted after making these withdrawals, what is the amount invested in the account initially?
If Jackson deposits 100 dollars at the beginning of each month in a savings account earning interest at the rate of 8%/year compounded monthly, how much will he have on deposit in his savings account at the end of 6 yr, assuming that he makes no withdraws during that period?
Jason makes six EOY deposits of $2,000 each in savings account paying 5% compounded annually. If the accumulated account balance is withdrawn four years after the last deposit, how much money will be redrawn?
Starting three months after her grandson Robin's birth, Mrs. Devin made deposits of $105 into a trust fund every three months until Robin was eighteen years old. The trust fund provides for equal withdrawals at the end of each quarter for four years, beginning three months after the last deposit. If interest is 5.84% compounded quarterly, how much will Robin receive every three months?
A man deposited $10,000 in a savings account when his son was born. The nominal interest rate was 8% per year, compounded continuously. On the son’s 18th birthday, the accumulated sum is withdrawn from the account. How much will this accumulated amount be?
Shiraz deposited $500 at the end of each year for 18 years in a savings account. If the account paid 5% interest, compounded annually, find the future value of his account.
Adriana Grandioso has made beginning-of-year deposits into an investment account for the past 21 years. Each deposit was $5635, and the account earned interest at a rate of 4.8% APR, compounded quarterly, each year. Having made her last deposit one year ago, Adriana now plans to transfer all of the accumulated funds today into a money-market account that earns an APR of 1.80% compounded quarterly. If Ms. Grandioso plans to withdraw $5000 from the account at the end of each quarter for the next 9 years (36 quarters), what will be the account balance total exactly nine years from now, immediately after she makes the last quarterly withdrawal?