Making Deposits
Genevieve plans to have a fixed amount from her paycheck directly deposited into an account that pays 5.5% interest, compounded monthly. If she gets paid on the first day of the month and wants to accumulate $13,000 in the next 312 years, how much should she deposit each month?
$280.11
$1500 is deposited at the end of each year for the next 6 years in a savings account paying 8% interest compounded annually. Find the future value of this annuity.
$11003.89
Suppose that Lucia invested $120,508.87 in a money market account that paid 1.24% interest compounded monthly. If she deposits an additional $950 a month into this new account, how much would be the total after 5 years?
$186985.58
To supplement her pension in the early years of her retirement, Ma'ata plans to use $400,000 of her savings as an ordinary annuity that will make monthly payments to her for 20 years. If the interest rate is 5.2%, how much will each payment be?
$2684.22/month.
Samantha deposits $800 at the beginning of each 6-month period for 5 years. Find the final amount if the account pays 6% compounded semiannually.
$9446.24
A parent opened an investment account for their child on the day the child was born, investing $1000. Each year on the child’s birthday, they deposit another $1000, making the last deposit on the child’s 18th birthday. If the account paid a return rate of 5.6% compounded annually, how much is in the account at the end of the day on the child’s 18th birthday?
$32426.46