A man decides to deposit $50 in the bank today and to make 10 additional deposits every
Question:
A man decides to deposit $50 in the bank today and to make 10 additional deposits every 6 months beginning 6 months from now, the first of which will be $50 and increasing $10 per deposit after that. A few minutes after making the last deposit, he decides to withdraw all the money deposited. If the bank pays 6% nominal interest compounded semiannually, how much money will he receive?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (12 reviews)
The series of deposits are beginningofperiod deposits rather than endofperiod The si...View the full answer
Answered By
PRINCE PANDEY
I am Indian Chartered Accounting having a strong hold in the subjects of Accounting, IFRS Reporting, Indian
Taxation, Cost Accounting, Auditing. I have vast experience of teaching a student with easy way problem-solving approach.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
If you put $ 500 in the bank today and leave it for 10 years, will you have more money if the bank pays you 4.25 percent per annum in simple interest or 3.65 percent per year and compounds the...
-
If you put $ 15,000 in the bank today to save for college, and leave it for 20 years, what quarterly rate of interest will you have to earn in order to be able to pay a $ 50,000 tuition bill when you...
-
If you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money?
-
A car of mass m starts from rest and accelerates so that the instantaneous power delivered to the car has a constant magnitude P. The instantaneous velocity of this car is proportional to : (a) t'P 0...
-
What explains the global price differential among hospitals? Why would countries like the U.S. have 10x the charges for procedures like hip replacements?
-
The Precision Machining Company makes hand-held tools on an assembly line that produces one product every minute. On one of the products, the critical quality dimension is the diameter (measured in...
-
A neurosurgery resident wants to double her money in the time it takes her to complete a residency program (7 years) so she can buy a new car with cash upon graduation. What interest rate is needed...
-
Finding Financial Information Refer to the financial statements of American Eagle given in Appendix B at the end of this book. Required: 1. What is the amount of accrued compensation and payroll...
-
Robert is planning to open his own residential building design business. What nontax factors should Robert consider as he chooses his business entity? Discuss and explain whether the nontax factors...
-
Explain why expected net income is also called "accretion of discount."
-
What amount will be required to purchase, on a man's 40th birthday, an annuity to provide him with 30 equal semiannual payments of $1000 each, the first to be received on his 50th birthday, if...
-
A man makes an investment every 3 months at a nominal annual interest rate of 28%, compounded quarterly. His first investment was $100, followed by investments increasing $20 each 3 months. Thus, the...
-
Go on the website of the U.S. Census Bureau International Data Base. In 2013, it was at http://www.census.gov/population/international/data/idb/informationGateway.php. Find the projected age pyramid...
-
B. The late Anne Collins had 3 children, Mary, John and Hana who unfortunately all predeceased Anne leaving several Anne's grandchildren and great grandchildren. Unfortunately, Anne died intestate...
-
The Toyota Prius has an internal combustion engine that operates on the Atkinson cycle. The Atkinson cycle consists of the following thermodynamic processes: Isentropic compression Isochoric heat...
-
An amine can be formed when 2 - iodopentane is heated withammonia in a sealed tube. This is an example of a nucleophilicsubstitution reaction.i ) Provide a full equation ( using condensed formula )...
-
Solid magnesium selenide has a crystal structure with the cubic unit cell pictured below, where the Se ions are represented as green spheres. The Se ions can be described as being What is the...
-
14. Describe how to prepare 2.00 L of 0.500 M CuSO4 solution using solid copper (II) sulfate crystals.
-
George Buckner sells an apartment building on October 10 for \($1.75\) million. The building was purchased on January 1, 2002, for \($2\) million. Depreciation of \($420,000\) has been taken. The...
-
Swifty company is a publicly held corporation whose $1 par value stock is actively traded at $30 per share. The company issued 3400 shares of stock to acquire land recently advertised at $93000. When...
-
This chapter discussed the need financial institutions have to control credit risk by lending to creditworthy borrowers. If you allow your credit to deteriorate, you may find yourself unable to...
-
A consulting engineer asked a company manager to assign importance values (0 to 100) to five attributes that will be included in an alternative evaluation process. Determine the weight of each...
-
Ten attributes were rank-ordered in terms of increasing importance and were identified as A, B, C, . . . , and J. Determine the weight of (a) Attribute C (b) Attribute J.
-
A team of three people submitted the following statements about the attributes to be used in a weighted attribute evaluation. Use the statements to determine the normalized weights if assigned scores...
-
Mary would like to save $10,000 at the end of 5 years for a future down payment on a car. How much should she deposit at the end of each month in a savings account that pays 1.2%/a, compounded...
-
AA stock price is $45/share. The stock is expected to pay dividends $2.50 in the coming year. After reviewing all information, you concluded: the price one year from now will be $50/share and you...
-
Fung is planning for the correct after tax and after inflation real rate of return to use. If inflation will be 1.3%, the average rate of return on his investments will be 4.9%, and the tax rate on...
Study smarter with the SolutionInn App