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2. Your grandfather has agreed to deposit a certain amount of money each year into an account paying 7.25 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to deposit $2,250, $8,150, $7,675, $6,125, and $12,345 into the account. How much will you have at the end of the five years?

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Reid Wolff
Reid WolffLv2
28 Sep 2019

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In five years, you plan on starting graduate school to earn your MBA. You know that graduate school can be expensive and you expect you will need $15,000 per year for tuition and other school expenses. These payments will be made at the BEGINNING of the school year. To have enough money to attend graduate school, you decide to start saving TODAY by investing in a money market fund that pays 4% APR with monthly compounding. You will make monthly deposits into the account starting TODAY for the next five years. How much will you need to deposit each month to have enough savings for graduate school? (Assume that money that is not withdrawn remains in the account during graduate school and the MBA will take two years to complete.)

To complete your last year in business school and then gothrough law school, you will need $10,000 per year for 4 years,starting next year (that is, you will need to withdraw the first$10,000 one year from today). Your uncle offers to put you throughschool, and he will deposit in a bank paying 5.77% interest a sumof money that is sufficient to provide the 4 payments of $10,000each. His deposit will be made today.

  1. How large must the deposit be? Round your answer to the nearestcent.
    $
  2. How much will be in the account immediately after you make thefirst withdrawal? Round your answer to the nearest cent.
    $

    How much will be in the account immediately after you make the lastwithdrawal? Round your answer to the nearest cent. Enter "0" ifrequired
    $

it's about Compound Interest Future Value

1-Raymond deposited his $1,000 bonus into an account paying 5.2% compounded semiannually. How much money will he have at the end of 7 years?

2-Stacy is going on a vacation to Europe at the end of 2 years. She deposits $6,141 in an account earning 4% interest compounded semiannually. How much money will Stacy have in he account for her trip?

3-Dan deposits $5,500 into a Certificate of Deposit (CD) paying 2.5% interest compounded quarterly. How much money will be in his account at the end of 17 years?

4-William deposited $7,000 into an account paying 7.7% compounded quarterly. Calculate how much money will be in the account at the end of 7 years.

5-Josh deposits $3,000 into an account paying 4% interest compounded monthly. What will the account be worth at the end of 23 years?

6-Jamie won $750 in a raffle at school. After donating $50 to charity, he deposited the remaining amount into an account paying 5% interest compounded quarterly. How much will the account be worth at the end of 15 years?

7-Mark deposited $5000 into an account paying 9% interest compounded monthly. How much money will he have at the end of 20 years?

8-Gary received a bonus of $8,000. He gave his son $720 and invested the remaining amount into a savings account earning 3% interest compounded quarterly. If he leaves the money in the account for 5 years, how much money will be in the account?

9-Curtis is 19 and wants to start saving money for retirement. He deposited $8,000 in an account earning 6% interest compounded semiannually. At the end of 50 years, how much will he have in the account for his retirement?

10-Franella wants to buy her dream car when she retires in 14 years. She deposits $20,000 in an account paying 8.4% interest compounded monthly. How much will she have to put towards her dream car at the end of 14 years?

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