Clarence contributions to the fund

Reference no: EM13786785

Question 1: Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdrew the accumulated amount of money.

Instructions

(a) Compute the amount Alan would withdraw assuming the investment earns simple interest.

(b) Compute the amount Alan would withdraw assuming the investment earns interest compounded annually.

Question 2: Clarence Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides to create a fund on an 8% basis that will enable him to with- draw $20,000 per year on June 30, beginning in 2018 and continuing through 2021. To develop this fund, Clarence intends to make equal contributions on June 30 of each of the years 2014-2017.

Instructions

(a) How much must the balance of the fund equal on June 30, 2017, in order for Clarence Weatherspoon to satisfy his objective?

(b) What are each of Clarence's contributions to the fund?

Reference no: EM13786785

Questions Cloud

The psychodynamic perspective : Why do one use different defencemechanisms? Explain and give example ona few different defence mechanismswhereby you have your own experience called off.

Share your plagiarism and logic self-check experience : share your plagiarism and logic self-check experience. Describe your process and the items you uncovered during your review. In a few sentences.

How does strong''s distinction between things and devices : How does Strong's distinction between "things" and "devices" serve to support or detract from his claims

Assignment on job evaluation at mpbs : Job Evaluation at MPBS

Clarence contributions to the fund : How much must the balance of the fund equal on June 30, 2017, in order for Clarence Weatherspoon to satisfy his objective? What are each of Clarence's contributions to the fund?

Evaluate the legal aspects of the construction industry : Prepare a 1,000-2,000-word paper in which you evaluate the legal aspects of the Construction Industry. As part of your paper, research and select three (3) contract types used in the Construction Industry today

Explain how asset allocation could have helped : Wwhen they faced losses due to an economic downturn. Explain how asset allocation could have helped the Pattersons

Write two pages or more on the results of your discussion : Write 2 pages or more on the results of your discussion and studies. You can go to CNN and FOX to find the media form there if you need any thing else just let me know.

Estimating the amount of the payments : What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by the end of the 8th year , if the fund earns 8 % interest, compounded annually?

User Account

All Pages