The first savings account Hector is opening is for emergencies only. He has $1500 to invest now. The savings account at Bestern Bank offers 7% interest, compounded monthly. How much money can Hector expect to have in his account after 15 years?
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The first savings account Hector is opening is for emergencies only. He has $1500 to invest now. The savings account at Bestern Bank offers 7% interest, compounded monthly. How much money can Hector expect to have in his account after 15 years?
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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual withdrawals of $2000 can be made before depleting the funds. If the first withdrawal is made in year 1 after the deposit and if the bank provides an interest rate of 5% per year, how much money should be deposited now? What if Troy decides to withdraw all that he has deposited in the bank now, 5 years later, how much money should he expect to get with an interest rate of 5%? Draw the cash flow diagram. 2.Isaiah wants to have $50,000 after six years in an account by making one single deposit. The account is compunded continuously at a rate of 5%. What intial deposit does he need to make?
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