Answer:
Final Value= $565,593.64
Explanation:
Giving the following information:
It is estimated that she would need $1 million to cover all the expenses for both her children. She is willing to save $20,000 every six months for the next 10 years. The estimated rate of return is 7 percent annually that she would be earning on a semi-annual compounding basis.
Effective rate=0.07/2= 0.035
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {20000*[(1.035^20)-1]}/0.035= $565,593.64
Answer:
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Answer:
C) $29,300
Explanation:
to determine the answer we need to solve the following equation:
60 installments (C + $100) + $700 = 60 installments x $600
60C + $6,000 + $700 = $36,000
60C + $6,700 = $36,000
60C = $29,300
C = $29,300 / 60 = $488.33 per month during 5 years
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