2.[10 points] Catherine deposits $P into a savings account on the first day of each month...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2.[10 points] Catherine deposits $P into a savings account on the first day of each month for the next 35 years (420 investments). Afterwards, she plans to retire and to withdraw a fixed amount of money $W each month for the following 35 years (420 withdrawals). Assume that a bank gives her a monthly interest r = 4%/12. Consider future and present values. (a) (4pts) How much money does she have a month after the last deposit? (b) (5pts) Find W such that her balance becomes zero with the last withdrawal. (c) (1pt) What money would you would like to have in retirement? What money would you would need to put aside each month? Make your own choice of $W (e.g. $3000) and compute $P. 2.[10 points] Catherine deposits $P into a savings account on the first day of each month for the next 35 years (420 investments). Afterwards, she plans to retire and to withdraw a fixed amount of money $W each month for the following 35 years (420 withdrawals). Assume that a bank gives her a monthly interest r = 4%/12. Consider future and present values. (a) (4pts) How much money does she have a month after the last deposit? (b) (5pts) Find W such that her balance becomes zero with the last withdrawal. (c) (1pt) What money would you would like to have in retirement? What money would you would need to put aside each month? Make your own choice of $W (e.g. $3000) and compute $P.
Expert Answer:
Answer rating: 100% (QA)
a To find how much money Catherine has a month after the last deposit we need to calculate the future value of her 420 deposits We can use the formula ... View the full answer
Related Book For
Posted Date:
Students also viewed these banking questions
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
Read the case study and answer the question below with a one page response. What does a SWOT analysis reveal about the overall attractiveness of Under Armours situation? Founded in 1996 by former...
-
Francine Frost graduated from State University with a degree in accounting five years ago, she was promoted to manager last week by the local CPA firm Ross & Denning, LLP. The firm has two...
-
Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $6,000 and sell its old washer for $2,000. The new washer will last for 6 years and...
-
From the following transactions for Leslie Company for the month of July, (a) Prepare journal entries (assume that it is page 1 of the journal), (b) post journal entries to the ledger (use a...
-
In 2014, Barker contacted Price about a van Price had advertised for sale. The advertisement described the van as a 1994 Ford E350. Barker and Price agreed to meet, and, on April 9, Barker inspected...
-
Kathy Roniger, campus dietitian for a small Idaho college, is responsible for formulating a nutritious meal plan for students. For an evening meal, she feels that the following five meal-content...
-
A vehicle of mass m = 1500kg travels on a circular curve of radius R = 1km at a speed of v = 10m/s. There is static friction between the road and the vehicle's tires. R Road with a circular curve of...
-
Write a program that asks for the user's height, weight, and age, and then computes clothing sizes according to the formulas: Hat size = weight in pounds divided by height in inches and all that...
-
Analyze and interpret the complex accounting implications of a merger between two multinational corporations, each with unique accounting practices, tax structures, and financial reporting standards....
-
For a large boiler, you have the choice of the following energy resources. Calculate the point of use cost per GJ for each Natural gas at $ 3.00 per kg, efficiency 75% Electricity at $ 0.18/kWh,...
-
When preparing the bank reconciling, how are NSF treated? Explain.
-
Which type of codes are used to report services provided face-to-face by a physician or other qualified healthcare professional for the purpose of promoting health and preventing illness or injury.
-
If a large chilled water plant has 6 chillers and 5 of them are operating at 1 0 0 % , when the operator starts the 6 th chiller, to what percent do the first 5 chillers unload? What formula do you...
-
Given the following, calculate the value of P, S and Power Factor v(t) = 100 sin(wt +30) - 50 sin(3wt + 60) + 25 sin(5wt +90) i(t) = 20 sin(wt - 30) + 15 sin(3wt +30) + 10 sin(5wt + 60)
-
What is master production scheduling and how is it done?
-
An augmented matrix that represents a system of linear equations (in variables x, y, and z, if applicable) has been reduced using Gauss-Jordan elimination. Write the solution represented by the...
-
Consider an angle in standard position with r = 12 centimeters, as shown in the figure. Describe he changes in the values of x, y, sin θ, cos θ, and tan θ as...
-
Find (a) | A | (b) | B | (c) AB (d) | AB| 1. 2. 3. -1 3 B = -1 B = 6 -2 4 -2 2] 0 -1
-
Go to the PMI Web site and examine the link Membership. What do you discover when you begin navigating among the various chapters and cooperative organizations associated with the PMI? How does this...
-
Go to http://www.pmi.org/business-solutions/casestudies and examine some of the cases included on the Web page. What do they suggest about the challenges of managing projects successfully? The...
-
Using your favorite search engine (Google, Yahoo!, etc.), type in the keywords project and project management. Randomly select three of the links that come up on the screen. Summarize what you find.
Study smarter with the SolutionInn App