Posted by **rhonda Porter** on Monday, November 26, 2012 at 10:06pm.

For the last 19 years, Mary has been depositing $500 in her savings account , which has earned 5% per year, compounded annually and is expected to continue paying that amount. Mary will make one more $500 deposit one year from today. If Mary closes the account right after she makes the last deposit, how much will this account be worth at that time?

Mary has been working at the university for 25 years, with an excellent record of service. As a result, the board wants to reward her with a bonus to her retirement package. They are offering her $75,000 a year for 20 years, starting one year from her retirement date and each year for 19 years after that date. Mary would prefer a one-time payment the day after she retires. What would this amount be if the appropriate interest rate is 7%?Mary’s replacement is unexpectedly hired away by another school, and Mary is asked to stay in her position for another three years. The board assumes the bonus should stay the same, but Mary knows the present value of her bonus will change. What would be the present value of her deferred annuity?

Mary wants to help pay for her granddaughter Beth’s education. She has decided to pay for half of the tuition costs at State University, which are now $11,000 per year. Tuition is expected to increase at a rate of 7% per year into the foreseeable future. Beth just had her 12th birthday. Beth plans to start college on her 18th birthday and finish in four years. Mary will make a deposit today and continue making deposits each year until Beth starts college. The account will earn 4% interest, compounded annually. How much must Mary’s deposits be each year in order to pay half of Beth’s tuition at the beginning of each school each year?

## Answer This Question

## Related Questions

- Algebra - Show how you substitute the values into the formula, then use your ...
- Statistics - Mary has a savings account and is earning 10% annual interest ...
- Personal Finance - Mary just deposited $33,000 in an account paying 7% interest...
- Algebra( check my answers) - 1. Juan deposited $200 in a savings account earning...
- Precalculus - NEED HELP ASAP PLEASE!! A savings account starts with $600 and ...
- Math - Your Aunt will give your $1,ooo if you invest it for 10 years in an ...
- Math - Mary B deposits $8500 into a savings account, compounded monthly at a ...
- Finite Mathematics - If a merchant deposits $1,500 annually at the end of each ...
- Finance - 1. A man establishes an annuity for retirement by depositing $50,000 ...
- Algebra ASAP - Suppose that $17,000 is invested in a savings account paying 5.1...

More Related Questions