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# Series of Compound Interest Techniques The following are several situations involving compound interest. Required: Using the appropriate table, solve each of the following: ( Click

Series of Compound Interest Techniques

The following are several situations involving compound interest.

Required:

Using the appropriate table, solve each of the following:

$($Click here to access the PV and FV tables to use with this problem.$)$

Hope Dearborn invests $$40,000$ on January $1,\text{}2019,$ in a savings account that earns interest of $8\%$ compounded semiannually. What will be the amount in the fund on December $31,\text{}2024?$

Round your answer to two decimal places.

$ fill in the blank $1$

$59,209\mathrm{.}60$

Ben Johnson receives a bonus of $$5,000$ each year on December $31.$ Beginning on December $31,\text{}2019,$ he deposits his bonus every year in a savings account that earns interest of $12\%$ compounded annually. What will be the amount in the fund on December $31,\text{}2023,$ after he deposits his bonus received on that date?

Round your answer to two decimal places.

$ fill in the blank $2$

$23,896\mathrm{.}65$

Ron Sewert owes $$30,000$ on a non$-$interest$-$bearing note due January $1,\text{}2029.$ He offers to pay the amount on January $1,\text{}2019,$ provided that it is discounted at $10\%$ on a compound annual discount basis. What would he have to pay on January $1,\text{}2019,$ under this assumption?

Round your answer to two decimal places.

$ fill in the blank $3$

$11,566\mathrm{.}31$

June Stickney purchased an annuity on January $1,\text{}2019,$ which, at a $12\%$ annual rate, would yield $$6,000$ each June $30$ and December $31$ for the next $6$ years. What was the cost of the annuity to Stickney?

Round your answer to two decimal places.

$ fill in the blank $4$

$33,901\mathrm{.}5$

Five equal annual contributions are to be made to a fund, with the first deposit on December $31,\text{}2019.$ Determine the equal contributions that, if invested at $10\%$ compounded annually, will produce a fund of $$30,000$ on December $31,\text{}2024.$

Round your answer to two decimal places.

$ fill in the blank $5$

$4,913\mathrm{.}92$

Beginning on December $31,\text{}2020,\text{}6$ equal annual withdrawals are to be made. Determine the equal annual withdrawals if $$11,000$ is invested at $10\%$ interest compounded annually on December $31,\text{}2019.$

Round your answer to two decimal places.

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