Steve Hitchcock is 38 years old today and he wishes to accumulate $501,000 by his 61st...

50.1K

Verified Solution

Question

Accounting

Steve Hitchcock is 38 years old today and he wishes toaccumulate $501,000 by his 61st birthday so he can retire to hissummer place on Lake Hopatcong. He wishes to accumulate this amountby making equal deposits on his 38th through his 60th birthdays.What annual deposit must Steve make if the fund will earn 11%interest compounded annually?
Annual Deposit=?
Cindy Ross has $18,800 to invest today at 9% to pay a debt of$40,832. How many years will it take her to accumulate enough toliquidate the debt?
Number of year= ?
Amy Houston has a $29,000 debt that she wishes to repay 6 yearsfrom today; she has $17,292 that she intends to invest for the 6years. What rate of interest will she need to earn annually inorder to accumulate enough to pay the debt?
Rate of interest ?

Answer & Explanation Solved by verified expert

3.6 Ratings (397 Votes)

Future Value of Accumulated Amount 501000 Total No of deposit is 6138 23 Interest Rate 11 compounded annually 1 Annuity Future Value C Future Value Factor 1r C1rn1r See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member