A father is planning to save $1500 yearly for the studies of his son. He will de

Question

A father is planning to save $1500 yearly for the studies of his son. He will deposit the money at the end of each year if his studies will start in 15 years, how much money will this father have after 15 years if the discount rate is 7%? Lee has invested in a shares and made 12% return in 125 days. What is the Effective Annual Rate? John invested in the shares of Walmart On December 31, 2015 when the share was $58. He received $2.50 dividend per share and he sold the share at $75 June 30, 2016. Calculate the EAR on the investment If he had invested in 5000 shares. How much was the return in $

Explanation / Answer

Solution :-

4. Amount to be saved = $1500 yearly

Time = 15 years

Rate = 7%

A = P (1 + r/n) (nt)

A = 1500 (1 +0.07 / 1) (1*15) = $ 4138.55

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.