An individual invests an amount of $5,000 in a bank account today, knowing that they will...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
An individual invests an amount of $5,000 in a bank account today, knowing that they will need to withdraw $1,000 in 1 year, $500 in 2 years and $2,000 in 3 years. If the interest rate on the amount invested is 2.5% per annum, calculate the amount of money in the bank account immediately after the $2,000 withdrawal in 3 years from today. An individual invests an amount of $5,000 in a bank account today, knowing that they will need to withdraw $1,000 in 1 year, $500 in 2 years and $2,000 in 3 years. If the interest rate on the amount invested is 2.5% per annum, calculate the amount of money in the bank account immediately after the $2,000 withdrawal in 3 years from today.
Expert Answer:
Answer rating: 100% (QA)
To calculate the amount of money in the bank account immediately after the 2000 withdrawal in 3 year... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
How the companies should do social media analyst to protect them?
-
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
-
1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...
-
Suppose that the fixed cost for a product is $400 and the break-even quantity is 80. Find the marginal profit (the slope of the linear profit function).
-
What are the three types of inventory? Which type is most likely to be affected by the JIT inventory system? Explain.
-
Alabama Corporation, an S corporation, liquidates this year by distributing a parcel of land to its sole shareholder Mark Ingram. The fair market value of the parcel is $50,000 and its tax basis is...
-
Find the present yield to maturity on government securities with maturities of one year, five years and ten years in the Financial Times. How has the yield curve changed since 2010 as shown in the...
-
The Akron Police Department has five detective squads available for assignment to five open crime cases. The chief of detectives, Paul Kuzdrall, wishes to assign the squads so that the total time to...
-
Rachel Janet is preparing the 2 0 2 4 budget for one of BestKayak s roto - moulded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the following...
-
Apollo Shoes is an audit case designed to introduce you to the entire audit process, from planning the engagement to drafting the final report. You are asked to assume the role of a veteran of...
-
Should united by blue raise the wholesale price of its t-shirts from $14.50 to $16.50? Brian Linton grew up in Singapore and Japan and, even as a child, was fascinated by water, particularly the...
-
B Company applies fixed factory overhead at the rate of $7 per machine hour. The fixed overhead budget is $28,000 per month. The standard machine hours allowed is 5 hours per finished unit. Last...
-
Elvin Hospital bases its budgets on patient-visits. The hospital's static planning budget for May appears below: Budgeted number of patient-visits Budgeted variable costs: Supplies ( $8.45 per...
-
Find WACC using last debt issuance and US treasury risk-free rate D/E Ratio 1.2 Yield on Bond issued 07/09/2023 8.5% Yield on Bond issued 17/02/2023 8.6% Yield on Bond issued 01/10/2023 8.9%...
-
A cheetah can run at a maximum speed 92.8 km/h and a gazelle can run at a maximum speed of 76.2 km/h. If both animals are running at full speed, with the gazelle 65.8 m ahead, how long before the...
-
Henna Co. produces and sells two products, Carvings and Mementos. It manufactures these products in separate factories and markets them through different channels. They have no shared costs. This...
-
Bronx Corporation uses the percentage of receivables method to estimate uncollectible accounts. Bronx's ending accounts receivable amounted to $60,000 and the current balance of allowance for...
-
Figure displays a 12.0 V battery 3 four uncharged capacitors of capacitances C1 = 4.00F, C2 = 6.00F, and C3 = 3.00F. The switch is thrown to the left side until capacitor 1 is fully charged. Then the...
-
During 2012, William purchases the following capital assets for use in his catering business: New passenger automobile (September 30)........................$21,500 Baking equipment (June 30)...
-
Joan is a self-employed attorney in New York City. Joan took a trip to San Diego, CA, primarily for business, to consult with a client and take a short vacation. On the trip, Joan incurred the...
-
During 2012, Palo Fiero purchases the following property for use in his manufacturing business: Palo uses the accelerated depreciation method under MACRS, if available, and does not make the election...
-
Oligopolists may charge a price lower than the profit-maximizing price to _________ new firms from entering the market. This strategy will be effective when new firms face _________ costs than...
-
In the traditional prisoners dilemma, a(n) _________ matrix is used to illustrate the various possibilities and results for the two parties.
-
In _________, each firm sets its policy without consulting other firms.
Study smarter with the SolutionInn App