Saturday

April 19, 2014

April 19, 2014

Posted by **sue** on Tuesday, March 1, 2011 at 5:52pm.

Anne has made an arrangement with her father to do chores if her dad deposits $3,500 at the end of each year for the next 7 years in a bank account paying 8% interest. Will there be enough money in the account for Anne to pay for her college expenses? Assume the rate of interest stays at 8 percent during the college year.

- finance -
**Anna**, Monday, March 7, 2011 at 8:53pmShe needs $10,000 in 7 years, making $3,500 each year, with 08% interest.

Starting: $0.00

After the first year: $3,500

After the second year: ($3,500 (.08)) + $3,500 + $3,500 = 7,280

After the third year (7,280 (.08)) + $3,500 + $7,280 = 11,082.40

She has enough for a year. Basically, find the interest on the last year and then add the newest amount of money to the last year's return.

- finance -
**mar**, Saturday, May 7, 2011 at 1:37amWhat major benefits do corporations and investors enjoy because of the existence of organized

security exchanges?

**Related Questions**

Finance - shley is planning to attend college when she graduates from high ...

college math - ok this is the last question i need help on. Abigail just ...

math - Suppose that the average earnings for high school graduates is $25,000, ...

Economics - Suppose that the average earnings for high school graduates is $25,...

Finance - 5. John and Daphne are saving for their daughter Ellen's college ...

math - According to the statistics of a famous high school in Canada, all their ...

probability - 78% of college graduates say they spent two years or less at their...

probability - 78% of college graduates say they spent two years or less at their...

FINANCE - What will $10,000,000 be in 12 years if it earns 7% and you add $5,000...

Compund Interest - Bobby needs to save $10,000 for school in the next two years...