Question: Terwilliger received 12 345 for his services as financial consultant to
Terwilliger received $12,345 for his services as financial consultant to the mayor’s office of his home-town of Springfield. Bob says that his consulting work was his civic duty and that he should not receive any compensation. So, he has invested his paycheck into an account paying 3.98 percent annual interest and left the account in his will to the city of Springfield on the condition that the city could not collect any money from the account for 200 years. How much money will the city receive from Bob’s generosity in 200 years?
Answer to relevant QuestionsKirk Van Houten, who has been married for 23 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $12,000 in ...An insurance agent just offered you a new insurance product that will provide you with $2,376.50 ten years from now if you invest $700 today. What annual rate of interest would you earn if you invested in this product?What is the future value of each of the following streams of payments?a. $500 a year for 10 years compounded annually at 5 percentb. $100 a year for 5 years compounded annually at 10 percentc. $35 a year for 7 years ...You plan to retire in 10 years and buy a house in Oviedo, Florida. The house you are looking at currently costs $100,000 and is expected to increase in value each year at a rate of 5 percent. Assuming you can earn 10 percent ...You’ve been offered a loan of $30,000, which you will have to repay in five equal annual payments of $10,000, with the first payment to be received one year from now. What interest rate would you be paying on that loan?
Post your question