PRE-CALCULUS

. Sam won \$150,000 in the Michigan lottery and decides to invest the money for retirement in 20
years. Find the accumulated value for Sam’s retirement for each of his options:
(a) a certificate of deposit paying 5.4% compounded yearly
(b) a money market certificate paying 5.35% compounded semiannually
(c) a bank account paying 5.25% compounded quarterly
(d) a bond issue paying 5.2% compounded daily
(e) a saving account paying 5.19% compounded continuously

1. 👍 0
2. 👎 0
3. 👁 233
1. (a) \$429,440.97; (b) \$431,200.96; (c) \$425,729.59; (d) \$424,351.12;
(e) \$423,534.64

1. 👍 0
2. 👎 0
posted by ROSE
2. a) 150,000 * 1.054^20 = 320,440.07 check
do the others the same way as I showed you in the previous problem below

1. 👍 0
2. 👎 0
posted by Damon

Similar Questions

1. Finance

Joseph is 28 and would like to retire at 55. He has \$25,000 to invest today and would like to have \$1,000,000 in his retirement account when he retires. Joseph has found an investment that will pay him a return of 6% until

asked by Elcia on February 18, 2016
2. Math Ratios

Peter & Sam won some money in a competition. Peter won 5 times as much money as Sam. Sam won \$4200 less than Peter. a. What was the ration of the amount of money Peter won to the amount of money Sam won to the total amount of

asked by Dottie on September 13, 2012

You have just received good news. You have inherited \$1,000,000 from a distant relative. You have to meet two goals with the money: one, start a small business and not spend more than \$250,000 in total in the next 2 years, and

asked by Anonymous on June 21, 2014
4. algebra

Lucas wins \$50,000(after taxes) in the lottery and decides to invest half of it in a 5-year CD that pays 5.35 percent compounded quarterly (4 times/year). He invests the other half in a money market fund that unfortunately turns

asked by Jackie on September 12, 2015
5. Retirement

1. I would like to retire in 42 years at the age of 65. The average retirement age for women is between 60-62 years of age, and 62-64 for men. 2. My annual amount of money I'll need after retiring would be approxiamately \$26,500

asked by Davoni on May 6, 2013
6. Finance

Sarah just won a \$3,000,000.00 lottery. According to the lottery they will pay her a lump sum of \$500,000.00 on October 1, 2012 and the balance in equal annual installments for 10 years. Assuming that you are the director of the

asked by Connie on September 25, 2012
7. Finance Math

Rafael Sandino’s parents are in their retirement years. They just received \$501,000 after taxes from the sale of their vacation home and decided to invest the money in a bond mutual fund. They chose a no-load mutual fund that

asked by Heyhi on April 22, 2018

Your client is 40 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save RM5,000 per year, and you advise her to invest it in the stock market, which you expect to

asked by Anonymous on December 5, 2014
9. personal finance

Beverly is planning for her retirement.She has determined that her car is worth \$10,000,her home is worth \$ 150,000,her personal belongings are worth \$100,000 and her stocks and bonds are worth \$300,000.She owes \$50,000 on her

asked by vedrana on March 19, 2010
10. mathematics

the theoretical probability of winning the lottery is 1/1,000,000,000.which of the ff is true if you purchase a lottery ticket?A.you will only win the lottery if you buy 1,000,000,000.B.you will never win the lottery.C.you will

asked by francisca on March 23, 2013

More Similar Questions