1 answer

Suppose 10 years ago your mother deposited $3,400 in an investment account earning 5.0% per year....

Question:

Suppose 10 years ago your mother deposited $3,400 in an investment account earning 5.0% per year. After 3 years she withdrew $1,122. There were no additional deposits or withdrawals from the account. Obtain today's value of the investment account.

$3,710.62

$4,239.39

$4,416.24

$3,959.48


Answers

We use the formula:  
A=P(1+r/100)^n
where   
A=future value
P=present value  
r=rate of interest
n=time period

Value after 3 years of deposit

A=3400*(1.05)^3-1122

=2813.925

Hence current value

A=2813.925*(1.05)^7

=$3959.48(Approx)

.

Similar Solved Questions

1 answer
Upts) GIve the text of the Spectral Theorem on a real inner product space E (3pts)...
Upts) GIve the text of the Spectral Theorem on a real inner product space E (3pts) Prove that any eigenvalue of a self-adjoint linear map on a complex inner product space is real. 4,) (3pts) Give the definition of a skew-symmetric matrix. X Lexercisebethe car points baseofPandaERaparameter -C )ER . ...
1 answer
Consider the following case: David owns a two-stock portfolio that invests in Celestial Crane Cosmetics Company...
Consider the following case: David owns a two-stock portfolio that invests in Celestial Crane Cosmetics Company (CCC) and Lumbering Ox Truckmakers (LOT). Three-quarters of David's portfolio value consists of CCC's shares, and the balance consists of LOT's shares. Each stock's expecte...
1 answer
UWU Company was incorporation on January 1, 2021. The following were the transactions during the year:...
UWU Company was incorporation on January 1, 2021. The following were the transactions during the year: - Total consideration from share issuance amounted to P4,000,000. - A land and building were acquired through a lump sum payment of P800,000. A mortgage amounting to P200,000 was assumed on the la...
1 answer
Describe the differences and similarities between the three different types of horizontal gene transfer.
describe the differences and similarities between the three different types of horizontal gene transfer....
1 answer
A rectangular loop of wire with sides H-26 cm and w-79 cm carries current . 0.344...
A rectangular loop of wire with sides H-26 cm and w-79 cm carries current . 0.344 A. An infinite straight wire, located a distance L-20 cm from segment ad of the loop as shown, carries current 1 -0.575 A in the positive y-direction. I2 a W I 1) What is Fad,x, the x component of the force exerted by ...
1 answer
How many boys play sports at this high school, if Charles High School has a total of 94 boys and girls who play sports and the number of boys is 22 more than twice the number of girls?
How many boys play sports at this high school, if Charles High School has a total of 94 boys and girls who play sports and the number of boys is 22 more than twice the number of girls?...
1 answer
Chapter 13, Problem 08 GO A closed box is filled with dry ice at a temperature...
Chapter 13, Problem 08 GO A closed box is filled with dry ice at a temperature of -81.6 °C, while the outside temperature is 16.3 °C. The box is cubical, measuring 0.397 m on a side, and the thickness of the walls is 4.36 x 10-2 m. In one day, 3.46 x 106 J of heat is conducted through the si...
1 answer
Solution steps plz 4. Based on the method presented in the lesson DIFFEQ 017, provide the...
Solution steps plz 4. Based on the method presented in the lesson DIFFEQ 017, provide the derivation of the Laplace transform L{sin at....
1 answer
1. Explain what is meant by business risk and financial risk. Suppose Firm A has greater...
1. Explain what is meant by business risk and financial risk. Suppose Firm A has greater business risk than Firm B. Is it true that Firm A also has a higher cost of equity capital? Explain. 2. Is there an easily identifiable debt-equity ratio that will maximize the value of a firm? Why or why not?...
1 answer
PRELAB 1. Use your textbook to define the following in your own words: a. Evolution: b....
PRELAB 1. Use your textbook to define the following in your own words: a. Evolution: b. Allele: c. Heterozygous: d. Homozygous: e. Dominant allele: f. Incomplete dominance: g. Natural Selection: h. Sexual Selection 2. What is genetic drift? How does it affect populations? Give an example of an event...
1 answer
THINK ABOUT 3-1 a. Explain why sublingual administration is faster than oral administration. b. How would...
THINK ABOUT 3-1 a. Explain why sublingual administration is faster than oral administration. b. How would severe kidney or liver damage affect blood levels of a drug? c. Describe three types of adverse reactions. THINK ABOUT3-2 a. Explain why drugs are classified legally into different schedules. b....
1 answer
Estimate the roll force and the power requirements for AISI 1020 annealed carbon-steel strip that is...
Estimate the roll force and the power requirements for AISI 1020 annealed carbon-steel strip that is 250 mm wide and 8 mm thick and rolled to a thickness of 6 mm. The roll radius is 250 mm, and it rotates at 200 rpm....
1 answer
Compute for required V Chu only QUESTION 2: 130 marks) (This Question is Conipulsory) (a) ABC...
compute for required V Chu only QUESTION 2: 130 marks) (This Question is Conipulsory) (a) ABC Investment Bank is planning to issue both 4-year coupon bond and zero- coupon bond each with a par value of Tshs 10 million. The former bord has a coupon vale of 12%. . Required: GO) Do the duration ana...
1 answer
Quality Progress, February 2005, reports on the results achieved by Bank of America in improving customer satisfaction and customer loyalty b listening to the “voice of the customer
Quality Progress, February 2005, reports on the results achieved by Bank of America in improving customer satisfaction and customer loyalty b listening to the “voice of the customer.” A key measure of customer satisfaction is the response on a scale from 1 to 10 to the question: “C...
1 answer
. Sam takes out a 30-year mortgage for $175,000 at an annual effective rate of 9%....
. Sam takes out a 30-year mortgage for $175,000 at an annual effective rate of 9%. Sam pays off the loan with level annual payments. At the end of 6 years, interest rates have dropped to 5% annual effective. Sam decides to refinance his existing loan while borrowing an additional 6,000 for a home-im...
1 answer
Concord Corporation has 6500 shares of 4%, $100 par value, cumulative preferred stock and 65000 shares...
Concord Corporation has 6500 shares of 4%, $100 par value, cumulative preferred stock and 65000 shares of $1 par value common stock outstanding at December 31, 2017. If the board of directors declares a $16250 dividend, the 1.$16250 will be held as restricted retained earnings and paid out at some f...