Question: Question 2: (6 marks) The James Co. plans on saving money to buy some new equipment. The company is opening an account today with a

Question 2: (6 marks) The James Co. plans on saving money to buy some new equipment. The company is opening an account today with a deposit of $15,000. After 2 years, the firm will add an additional $10,000 to the account and after 4 years from today, they plan to add another $40,000 to the account. How much money will the James Co. have in their account five years from now? Assume the James Co. can earn an interest of 4% compounded annually in the first 3 years and an interest of 5% compounded annually in the last 2 years. Question 3: (5 marks) Martha will receive $6,000 in two years from Tom. She will receive an additional $4,000 in three years from Tom. She earns 7.15% annually on her investments. How much is this money from Tom worth to Martha today? Question 4: (5 marks) Your grandmother deposits $35,000 into a bank account earning interest of 4% annually. You can't withdraw the money until the balance has doubled. How long will you have to leave the money in the account
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
