Question: Let's assume that a late-twentieth century college graduate got a good job and began a savings account. He is paid monthly and authorized the bank

Let's assume that a late-twentieth century college graduate got a good job and began a savings account. He is paid monthly and authorized the bank to automatically withdraw $75 each month. The bank made the first withdrawal on July 1, 1997 and is instructed to make the last withdrawal on January 1,2015 the bank pays a nominal interest rate of 4.5% and compounds twice a month. What is the future worth of the account on January 1, 2015?

Step by Step Solution

★★★★★

3.37 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The monthly deposits to the savings account do not match the twice a month c... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

7-B-E-M (240).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Last week, you got a job offer from your first choice company, and you accepted it over the phone. Today, the written confirmation arrived. The letter specifies the starting salary and fringe...

Bank savings accounts typically pay an interest rate well below the inflation rate. As of spring 2011, for example, the best interest rates on savings accounts were around 1% per year, while the CPI...

What nominal annual rate of interest compounded monthly was paid if contributions of $250 made into an RRSP at the end of every month amounted to $35 000 after 10 years?

One. Recall an experience at work or school (or in life generally) when your perceptions (or someone else's perceptions) were later found to be distorted. The following factors distort our...

Please Follow the Instructions Subject English 103 Com/Critical Thinking 1. Analyze: In at least words , post a response to the assigned reading by analyzing the text (this is a close reading to find...

Apply basic income tax concepts for personal tax planning Recommend investment strategies from a tax 1. Apply basic income tax concepts for personal tax planning 2.Recommend investment strategies...

I've attached the question as a word file, thanks! JWCL165_c12_568-611.qxd 8/12/09 8:29 AM Page 568 12 Investments Chapter STUDY OBJECTIVES After studying this chapter, you should be able to: 1...

:Answer all questions. Everyone has to eventually look to the future and consider the prospects of retirement. What is the present status of retirement benefits according to the authors of the...

Everyone has to eventually look to the future and consider the prospects of retirement. What is the present status of retirement benefits according to the authors of the attached article? Do you...

if i can please have the answers in the excel form where they go in the pictures, that be terrific and appreciated. BTW. . .A. Merge Center - $ - % 848 Conditional Format as Cell Formatting Table...

What is sustainable agriculture? What are some features of a sustainable farm?

Write a bash script that accepts a persons name as acommand-line argument and simply prints out the following greeting:"Good day, ! Nice to meet you!", where is a positional parameter (i.e.,...

Determine if the situation creates an AMT adjustment or preference when starting with regular taxable income. Place an "A" in the column for Adjustment or a "P" in the column for Preference....

Subject; Thermodynamics Using the book oh Thermodynamics. Cengel, Y.A., and Boles, M.A. (2008). Thermodynamics: An Engineering Approach. 6th ed. McGraw Hill. For a process of combustion of Butane...

Refer to the financial statements of Campbell Soup in Appendix A. The Note on Pension Plans and Retirement Benefits describes computation of pension expense, projected benefit obligation (P80), and...

By mistake, a student who is running a computer program enters with negative signs two of the six positive numbers and with positive signs two of the four negative numbers. If at some stage the...

What is the depreciation charge of an equipment purchased five years ago for $200,000, and a expected life of 10 years if it is depreciated using the MACRS method? a) $6,560 b) $23,040 c) $18,440 d)...

Quaker Mills projects that they need to buy two million bushels of oats in June for the production of breakfast cereal that month, Suppose that the current data is April 1. Currently, the CBOT. Which...

Why might leaders who need to develop greater emotional intelligence be less capable of identifying such a need?

During periods of hyperinflation, prices increase rapidly over short periods of time. In 1993, the Consumer Price Index (CPI) in Brazil was 113.6 billion. In 1994, the CPI was 2472.4 billion. (a)...

Assume the inflation rate is 4% per year and the market interest rate is 5% above the inflation rate. Determine (a) The number of constant-value dollars 5 years in the future that is equivalent to...

The Pell Grant program of the federal government provides financial aid to needy college students. If the average grant is slated to increase from $4050 to $5400 over the next 5 years "to keep up...

Ford Motor Company announced that the price of its F-150 pickup trucks is going to increase by only the inflation rate for the next 3 years. If the current price of a well-equipped truck is $28,000...

In an effort to reduce pipe breakage, water hammer, and product agitation, a chemical company plans to install several chemically resistant pulsation dampeners. The cost of the dampeners today is...

Tax Tables Use the following tax tables to answer your questions, where necessary. Rates of tax from 2016/2017 tax years Resident companies On taxable income Standard rate 22% Manufacturing company...