Homework Clinic

Mathematics Clinic => Grade 11 and 12 Mathematics => Topic started by: notis on Jun 6, 2019

Title: A trust fund will start to pay you $15 200 per year at the beginning of each year once you turn 18. ...
Post by: notis on Jun 6, 2019

Question 1

Your child is currently six years old. When he turns 19 you want him to be able to withdraw $14700 per year in order to either travel or go to school for four years. If you are able to earn 6.62% compounded semi-annually for the entire time period, what is the single amount of the deposit three years from now that will ensure that your child is able to do this?
◦ $27 877.49
◦ $28 777.49
◦ $29 877.49
◦ $28 877.49
◦ $27 777.49

Question 2

A trust fund will start to pay you $15 200 per year at the beginning of each year once you turn 18. The prevailing interest rate is 8.79% compounded annually. For how long can you receive payments if you are celebrating your 14th birthday today and the current value of your trust fund is $111 345?
◦ 20.97 years
◦ 20.07 years
◦ 24.97 years
◦ 29.07 years
◦ 29.77 years

Title: A trust fund will start to pay you $15 200 per year at the beginning of each year once you turn 18. ...
Post by: mathjasmine on Jun 6, 2019

Answer 1

$27 877.49

Answer 2

20.97 years

Title: Re: A trust fund will start to pay you $15 200 per year at the beginning of each year once you turn
Post by: Zuke on Dec 2, 2020

thank you