Nelly turns 25 today. An investment her grandfather made in her name on the day of her birth is now worth R50 000. The investment has accumulated interest at 8% compounded quarterly since the original deposit. How much did her grandfather originally invest?
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- Today is a Tamara's 25th birthday, she decided to deposited a 14500 at a rate of 12% per annum to her personal account. If she increases his deposit by 10% each year until the 30th birthday, find the present worth of her money. (2 decimal places only, rounded off) Amount -Your older sister deposited $2500 today at 6.5 percent interest for 15 years. However, you can only earn 6.25 percent interest. How much more money must you deposit today than your sister did if you are to have the same amount saved at the end of the 15 years?Your grandmother invested $1,000 for you the day you were born. How much will this investment be worth on your 30th birthday, assuming the investment earned 6% interest compounded quarterly?
- Walter is investing $5,000in an account paying 6.75 percent annually for three years. What is the interest-on-interestif interest is compounded?Hint: Find the interest earned using compound interest and simple interest. The difference between them isyour answer.Jillian invested $2,000 six years ago at 4.5 percent interest. She spends all of her interestearnings immediately, so she only receives interest on her initial $2,000 investment. How muchinterest is she earning each year?Assume that a couple invests $1000 upon the birth of their daughter. Assume that the investment earns 6.8% compounded annually. What will the investment be worth on the daughter’s 18th birthday?
- Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?Sue wants to leave her grandson a nice inheritance. She has decided to deposit $350.00 each month into an ordinary annuity that earns 4.1% compounded monthly. How much will be in the account after 19 years? Round your final answer to the nearest cent. Assume the interest rate stays the same while the account is open. Future Value What is the sum of all of Sue's deposits? Round your final answer to the nearest cent. Total Deposited How much interest, in total, did her account earn? Round your final answer to the nearest cent. InterestAnnette has just inherited $180,000. She invests this money at a rate of return of 6.47% per year compounded quarterly. After some period of time, she purchases an annuity that pays $2851 at the beginning of each month for 20 years. What monthly compounded rate of interest is equivalent to 6.47% compounded quarterly?
- Susan Myer had invested $2500 in an ABC bank Certificate of Deposit when she inherited trust funds from her grandmother 15 years ago. If her investment is worth $7235 today, what interest rate compounded monthly did this investment earn? Round your answer to the nearest hundredth of a percent.Helen can earn 3% interest in her savings account. Her daughter Roberta is 11 years old today. Suppose Helen deposits $4000 today, and one year from today she deposits $1000. Each year she increases her deposit by $500 until she makes her last deposit on Roberta’s 18th birthday. How much is on deposit after the 18th birthday, and what is the annual equivalent of her deposits?Noah invests $600 at the end of each quarter for 30 years in an account paying 5.64% interest compounded quarterly and then he retires. Suppose that he was in the 15% bracket when the deposits were made and interest was earned. Suppose his tax bracket is now 33% in retirement. Find the current after-tax value of Noah's account if it was set-up as (i) a Traditional Individual Retirement Account (IRA): $ (ii)a Roth Individual Retirement Account (Roth-IRA): $