Please do 23, 25, 27 , 29 , 31

23 Suppose that $2000 is invested now, $2500 two years from now, and $1200 four years from now, all at 8% per year, compounded annually. What will be the total amount 10 years from now? Ans. $10 849.42 Repeat Problem 2.23 for an interest rate of 7% per year, compounded annually. Ans. $10 639.21 24 25 On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th birthday, again on his 19th birthday, again on his 20th birthday, and again on his 21st birthday. If the fund earns interest at 9% per year, compounded annually, how much should the father deposit at the end of each year, up through the 17th year? Ans. $350.49 26 Repeat Problem 2.25 for an interest rate of 83% per year, compounded annually. Ans. $370.95 27 A new machine is expected to cost $6000 and have a life of 5 years. Maintenance costs will be $1500 the first year, $1700 the second year, S1900 the third year. $2100 the fourth year, and $2300 the fifth year. To pay for the machine, how much should be budgeted and deposited in a fund that carns (a) 9% per year. compounded annually? (b) 10% per year, compounded annually? Ans.(a) $13 256,69: (6) $12962.59 28 The ABC Company has contracted to make the following payments: $10 000 immediately: $1000 at the end of year 1: $1500 at the end of year 2: $2000 at the end of year 3; 52500 at the end of year 4: $3000 at the end of year 5. What fixed amount of money should the company plan to set aside each year, at 8% interest per year, compounded annually, in order to make the above payments? Ans. $4427.82 29 Suppose that someone deposits $2500 in a savings account at the end of each year for the next 15 years. How much money will the person have by the end of the 15th year if the bank pays (a) 8%, (b) ol%, per year, compounded annually? Ans (a) 867 880.28: (b) $61 626,00 30 Mr. Jones has deposited his life savings of $70 000 in a retirement income plan with a local bank. The bank pays (a) 10% (b) 11%, per year, compounded annually, on such deposits. What is the maximum fixed amount Mr. Jones can withdraw at the end of cach year and still have the funds last for 15 years? Ans.(a) 89203.16; (b) 59869.27 31 Mr. White is planning to take early retirement. He has decided that he needs S15 000 per year to live on. for the first 5 years of his retirement, after that, his Social Security and other pension plans will provide him an adequate retirement income How much money must he have in the bank for his 5-year early retirement period, if the bank pays (a) 10% (6) 98% per year, compounded annually, on the funds? Ans. (a) $56861.80 (0) 57968 26 2.29 Suppose that someone deposits $250(j in a savings account at the end of each year for the next 15 years. How much money will the person have by the end of the 15th year if the bank pays (a) 8%, (b) 60%, per year, compounded annually? Ans.(a) $67 880.28;' (b) 561 626.00 2.31 Mr White is planning to take early retirement. He has decided that he needs $15 000 per year to live on, for the first 5 years of his retirement; after that, his Social Security and other pension plans will provide him an adequate retirement income. How much money must he have in the bank for his 5-year early retirement period, if the bank pays (a) 10%, (b) 92%, per year, compounded annually, on the funds? Ans.(a) 861.80; (b) 96826