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Author Question: Steve and Ed are cousins who were both born on the same day. Both turned26today. Their grandfather ... (Read 52 times)

lauraleepop

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Question 1

Pace Co. borrowed $30,000 at a rate of8.5%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Pace have to pay in a 30-day month?

$206.32


$209.49


$212.50


$214.37



Question 2

Steve and Ed are cousins who were both born on the same day. Both turned26today. Their grandfather began putting $2,700per year into a trust fund for Steve on his 20th birthday, and he just made aseventhpayment into the fund. The grandfather (or his estate’s trustee) will continue with these $2,700payments until a51stand final payment is made on Steve’s70thbirthday. The grandfather set things up this way because he wants Steve to work, not to be a “trust fund baby,” but he also wants to ensure that Steve is provided for in his old age.

Until now, the grandfather has been disappointed with Ed, hence has not given him anything. However, they recently reconciled, and the grandfather decided to make an equivalent provision for Ed. He will make the first payment to a trust for Ed later today, and he has instructed his trustee to make additional equal annual payments each year until Ed turns70, when the45thand final payment will be made. If both trusts earn an annual return of9%, how much must the grandfather put into Ed’s trust today and each subsequent year to enable him to have the same retirement nest egg as Steve after the last payment is made on their70thbirthday?


$4,026


$4,312


$4,567


$4,713



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Marked as best answer by lauraleepop on Aug 7, 2023

labrinker

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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lauraleepop

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


nothere

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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