22. Determine the amount of money in a savings account at theend of 3 years, given an initial deposit of $4,000 and an annualinterest rate of 4 percent when interest is compounded: UseAppendix A for an approximate answer, but calculate your finalanswer using the formula and financial calculator methods.(Do not round intermediate calculations. Round your finalanswers to 2 decimal places.)
|
| | | Futurevalue | | a. | Annually | | | b. | Semiannually | | | c. | Quarterly | |
|
30. Your parents have accumulated a $170,000 nest egg. They havebeen planning to use this money to pay college costs to be incurredby you and your sister, Courtney. However, Courtney has decided toforgo college and start a nail salon. Your parents are givingCourtney $20,000 to help her get started, and they have decided totake year-end vacations costing $8,000 per year for the next fouryears. Use 8 percent as the appropriate interest rate throughoutthis problem. Use Appendix A and Appendix D for an approximateanswer, but calculate your final answer using the formula andfinancial calculator methods.
a. How much money will your parents have at theend of four years to help you with graduate school, which you willstart then? (Round your final answer to 2 decimalplaces.)
|
| | Fundsavailable for graduate school | |
|
b. You plan to work on a master’s and perhaps aPhD. If graduate school costs $23,540 per year, approximately howlong will you be able to stay in school based on these funds?(Round your final answer to 2 decimal places.)
1
