#1: Your son turned 14 today. You want to finally start saving up money for your son's future degree. of course, she'll go to College. he will start his university degree exactly on his nineteenth birthday. Here's your plan: You will deposit $14,000 in your local bank, over and over again, a total of six times. Actually, you will start today! When your son. turns nineteen, you will immediately withdraw $25,000, and keep withdrawing the same exact amount from the same account (that continues earning interest), once a year. A total of four money withdrawals will be all you'll need to pay for your son's tuition. Given the information above, the bank must be offering a ____ percent interest rate. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 12.34)

#2:

Your retirement is something to start thinking about. Here's how you're planning to save up for your retirement. You will be setting aside some fixed amount of money over the next 35 years. First, every month, you'll be spending $840 to buy some stocks. You expect to get a 10.4 percent return each year. Second, every month, you'll be spending $440 to buy some bonds. You expect to get a 6.4 percent return each year. You'll keep doing that for the next 35 years until you retire. Once you retire, you'll put all the money that you'll have into a bank account with a guaranteed 7.4 percent APR. During your retirement, you will be withdrawing money from that bank account, once a month, for a total of 30 years.

Based on the above information, you should be able to withdraw $____ each time. (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 134.34)

Answer rating: 100% (QA)

1 To find the interest rate we need to find out how much money you will have at the end of the six deposits and the four withdrawals First lets calcul... View the full answer