At the end of each year, a worker invests $12,000 into an account that draws 7%...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
At the end of each year, a worker invests $12,000 into an account that draws 7% interest. The worker makes every payment for the next 30 years. She could not do any investment in years 31, 32, and 33 since she lost her job but she resumed her investment in year 34. To catch up on the lost three years, she changed her strategy and started year 31 with $15,000 and increased it by $1,500 every year till the end of year 40. That is, she did $15,000 in 31, $16,500 in year 32, $18,000 in year 33 etc. till year 40, and then retired and cashed out, i. ii. Draw the cash flow diagram for this investment. How much money will be in the account at the end of 40 years? At the end of each year, a worker invests $12,000 into an account that draws 7% interest. The worker makes every payment for the next 30 years. She could not do any investment in years 31, 32, and 33 since she lost her job but she resumed her investment in year 34. To catch up on the lost three years, she changed her strategy and started year 31 with $15,000 and increased it by $1,500 every year till the end of year 40. That is, she did $15,000 in 31, $16,500 in year 32, $18,000 in year 33 etc. till year 40, and then retired and cashed out, i. ii. Draw the cash flow diagram for this investment. How much money will be in the account at the end of 40 years?
Expert Answer:
Answer rating: 100% (QA)
i The cash flow for this investment is shown below Year Investment Interest Balance 0 12000 840 128... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
Posted Date:
Students also viewed these accounting questions
-
The Wayne City Council approved and adopted its general fund budget for 2013. The budget contained the following amounts: Estimated revenues $70,000,000 Appropriations 66,000,000 Authorized transfer...
-
The town council of Riverside estimated revenues for 2015 to be $770,000 from property taxes and $170,000 from business licenses. The appropriations budget from the council was as follows: General...
-
The Ace Parking Garage charges $5.00 for parking for 2 hours or less and $1.50 for each extra hour or part of an hour after the 2-hour minimum. The parking charges for the first 5 hours could be...
-
The drawing shows a frictionless incline and pulley. The two blocks are connected by a wire (mass per unit length = 0.0250 kg/m) and remain stationary. A transverse wave on the wire has a speed of...
-
Suppose an auto manufacturer has one factory in the United States and one in Mexico. The auto manufacturer produces the same number of cars and the same models in each factory but hires more workers...
-
Ocean Prime, LLC, owns buildings at 1 West Street and 17 Battery Park Place in New York City in an area known to be vulnerable to flooding. The buildings include nearly five hundred residential...
-
Which journal entry records obtaining a bank loan of $15,000? DATE ACCOUNTS POST REF. DR. CR. a. Notes Payable 15,000 Accounts Receivable 15,000 b. Notes Payable Cash 15,000 15,000 C. Cash Notes...
-
On January 1, 2010, Furball Company had Accounts Receivable $98,000 and Allowance for Doubtful Accounts $8,100. Furball Company prepares financial statements annually. During the year the following...
-
(9x+5) dx = Use C as the arbitrary constant.
-
State the predicted height, taken from your graph, of the ping pong ball bounce when dropped from 4 m. Then draw a sketch of the ping pong ball at the top of its bounce (maximum height) and give your...
-
Prove, using rectangular coordinates, that n T = x" . n.
-
Designing a Video Content Management System Step 1: Code the pages (HTML, CSS and any framework of your choice, e.g. Bootstrap) Page 1: List of the Videos Upload and Post a New Video Video One Title...
-
Given that in a RLC circuit L is connected in series with a parallel combination of R C , Where R = 4 0 h m s , L = 1 H and C = 0 . 5 F , what is the impedance, Z in complex notation. Solve without...
-
Frank Inc.'s data from the year just ended (below), compute cost of goods sold: Purchases of raw material, $26,000 Indirect materials transferred to manu. overhead $6,000 Direct labor, $58,000...
-
Newton's Laws of Motion certainly apply to motor vehicle accidents. Using your understanding of Newton's Laws of Motion, explain how seat belts in motor vehicles prevent injury during car accidents,...
-
Suppose your car was mired deeply in the mud and you wanted to use the method illustrated in the figure below to pull it out. F -TO-F Tree Trunk (a) What force would you have to exert perpendicular...
-
Explain briefly how the values of diff, and bor +1 are obtained (15 pts) diffi bor i+1 a b bor +1 0 0 0 0 0 1 00 0 1 0 1 1 1 0 0 1 0 1 1 1 0 1 1 1
-
If someone's Z-score for a variable was 0.67. Their score is a significant extreme score. Their score is not significant. O Their score is slightly above average. O Their score is an outlier.
-
Corporations A and B are formed to purchase property and lease it to end users C and D. Required In each of these independent cases, indicate whether A and B are variable interest entities and, if...
-
Fair Value Hedge with Put Options In January, 2014, Combo Corporation purchased $200,000 of 5 percent government bonds at par for its trading portfolio, carried at market pursuant to ASC Topic 320....
-
Prince Corporation acquires Squire Service Corporation for one million shares of Prince stock, valued at $35 per share. Squire is merged into Prince, although it continues to do business under the...
-
How do you trace requirements? To where?
-
What is requirements traceability?
-
How do you track and controlMOEs, MOSs,MOPs, and TPMs?
Study smarter with the SolutionInn App