1. You open an account today with a single deposit of $10,000. For the account balance to...
Question:
1. You open an account today with a single deposit of $10,000. For the account balance to grow to $40,000 in 10 years, what annual rate of return is required? Assume no other deposits or withdrawals are made. FORMATTING: Enter "6.78" for 6.78%. Round your answer to two decimal places.
2. You opened an account with a single deposit of $10,000 7 years ago. As of today, your account balance has doubled without having made any other deposits or withdrawals. If the account's annual rate of return increases by 2%, how long will it take (in years) for the account balance to double again? Round your answer for two decimal places.
3. You want to fund an expense of $25,000 due in 5 years by making a single deposit today. You make a deposit today such that if the account earns a 5% annual rate of return, you will have exactly enough in your account to fund the expense. If your account actually earns a 3.75% annual rate of return, what will your account balance be in 5 years? FORMATTING: Enter your answer as a positive number. Round to the nearest cent.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill