1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Travka [436]
2 years ago
11

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compo

unding period.
An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.3%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.

Joe $

Jill $
Mathematics
1 answer:
Sholpan [36]2 years ago
8 0

Answer:

Ans. Joe will have $720,862.28 and Jill will have $819,348.90 after 30 years.

Step-by-step explanation:

Hi, since the interest is compounded with each payment, the effective rate of Joe is exactly equal to its compounded rate, that is 9.3%, but in the case of Jill, this rate is compounded weekly, this means that we have to divide 9.3% by 52 (which are the weeks in a year) in order to obtain an effective rate, in our case, effective weekly.

On the other hand, the time for Joe is pretty straight forward, he saves for 30 years at an effective annual interest rate of 9.3%, but Jill saves for 30*52=1560 weeks, at a rate of 0.1788% effective weekly.

They both have to use the following formula in order to find how much money will they have after 30 years of savings.

FutureValue=\frac{A((1+r)^{n}-1) }{r}

In the case of Joe, this should look like this

FutureValue=\frac{5,000((1+0.093)^{30}-1) }{0.093} =720,862.28

In the case of Jill, this is how this should look like.

FutureValue=\frac{96.15((1+0.001788)^{1560}-1) }{0.001788} =819,348.90

Best of luck.

You might be interested in
32.5% of what number is 12.48?
vagabundo [1.1K]

Answer:

38.4;

Step-by-step explanation:

32.5% × ? = 12.48

? =

12.48 ÷ 32.5% =

12.48 ÷ (32.5 ÷ 100) =

(100 × 12.48) ÷ 32.5 =

1,248 ÷ 32.5 =

38.4;

5 0
2 years ago
You order a new pair of running shoes from a website that offers free shipping on orders of $75 or more. Your shoes cost $69.95.
gayaneshka [121]

Answer: x > 75-69.95; you need five dollars and five cents more for free shipping ($5.05)

Step-by-step explanation: i believe this is the correct answer because as long as you have 75 dollars or more, then you will be good so that’s how i got the inequality. to find this you just subtract the amount needed (75) by the amount you have and you get your answer. oh and to be clear x represents the amount needed for free shipping. i am not sure if i understood the problem correctly so i apologize if it is incorrect. i hope this helped and good luck!

3 0
2 years ago
kayden paddled a canoe to an island. the island is 8 miles from the shore. his trip to the island took two hours while paddling
Andrew [12]

Answer:

2\text{ mph}

Step-by-step explanation:

GIVEN: kayden paddled a canoe to an island. the island is 8 miles from the shore. his trip to the island took two hours while paddling against the current. he paddles 6 mph with no current.

TO FIND: what was the speed of the current.

SOLUTION:

distance of island from the shore =8 miles

total time taken by Kayden =2 hours

speed of Kayden in still water =6\text{ mph}

Let the speed of current be x

Speed of Kayden against current =6-x\text{ mph}

As,

\text{Time}=\frac{\text{Distance}}{\text{speed}}

2=\frac{8}{6-x}

12-2x=8

x=2\text{ mph}

Hence speed of current is 2\text{ mph}

7 0
3 years ago
I NEED HELP ! "DONT U ALWAYS" YES BUT I DONT UNDERSTAND THIS UNFORTUNATELY! lolll
KATRIN_1 [288]
I believe the building is 75.5 meters long
7 0
3 years ago
Richard walks 1 kilometer in 12 mins how many does he walk in a hour
gladu [14]
He would have walked 5 kilometers because 12 goes into 60 5 times
4 0
3 years ago
Other questions:
  • If the radius of a cone is doubled and the height is tripled, what happens to the volume?
    5·1 answer
  • I’m in a hurry!!plz help me with question 9 and 10
    15·1 answer
  • Evaluate the expression 2^3[1/4+4(36÷12)]
    8·1 answer
  • Lines c and d are perpendicular. if the slope of line c is -4, what is the slope of line d?
    13·1 answer
  • Error Analysis  A gardener plans to extend the length of a rectangular garden by 7 feet. Let x represent the​ garden's original
    6·1 answer
  • What is six over eight plus four over eight
    9·1 answer
  • A box of cereal has a width of 4 inches, and a length of 8 inches and a height of 12 inches. What is the volume of the box, in c
    5·2 answers
  • What is this answer?
    5·1 answer
  • A rectangle's width is 1/3 its length and its perimeter is 40 m. find the dimensions of the rectangle
    7·1 answer
  • If the second equation is multiplied by 5 and then the equations are added, the result is _____.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!