How much money would be in the account

Assignment Help Finance Basics

Reference no: EM133772212

Bubba is a shrimp farmer. In an ironic twist, Bubba is allergic to shellfish, so he cannot eat any shrimp. Each day he has a one-ton supply of shrimp. The market price of shrimp is $10,000 per ton.
a. What is the value of a ton of shrimp to him?
b. Would this value change if he were not allergic to shrimp? Why or why not?

P3-11 Due to your good credit, your bank reduces the interest rate on your$12,000loan from 9% to 7.5%
per year. Thanks to the change, how much will you save in interest this year?

P3-18 You are considering a savings bond that will pay $100in 10years. If the interest rate is 2%, what should you pay today for the bond?

P3-26Your cousin is currently 12 years old. She will be going to college in 6 years. Your aunt and uncle would like to have $100,000 in a savings account to fund her education at that time. If the accountpromises to pay a fixed interest rate of 4.0% per year, how much money do they need to put into the account today to ensure that they will have $100,000 in 6 years?

P3-29You are planning to invest $5,000 in an account earning 9% per year for retirement.
a. If you put the $5,000 in an account at age 23, and withdraw it 42 years later, how much will you have?
b. If you wait 10 years before making the deposit, so that it stays in the account for only 32 years, how much will you have at the end?

P3-30Your grandfather put some money in an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $3,996 in it and pays an 8% interest rate.
a. How much money would be in the account if you left the money there until your 25th birthday?
b. What if you left the money until your 65th birthday?
c. How much money did your grandfather originally put in the account?

Reference no: EM133772212

Questions Cloud

Implement performance improvement processes : How can regulatory agency websites be used to implement performance improvement processes?

Prepare a detailed outline of your initial analysis : Prepare a Detailed Outline of your initial analysis of the fluctuations using the Excel spreadsheet file (.xlsx) template provided

Distinguish between change champions and opinion leaders : Briefly distinguish between change champions and opinion leaders. Then, expand upon the document and share your additional or alternative perspectives.

How article applies to work in early childhood education : How comparing and contrasting the articles affects your feelings about and understanding? How each article applies to work in early childhood education?

How much money would be in the account : How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday

Show your accurate understanding of key concepts : Show your accurate understanding of key concepts and ideas from the reading materials using your own words.

How evidence-based practice is different from research : Using supporting documentation from at least one nursing publication, describe how evidence-based practice is different from research.

Leader for effective security planning and management : Describe the behavior you would use as a leader for effective security planning and management?

Confusion of roles and responsibilities across several teams : Recently I have encountered problems in my workplace over the confusion of roles and responsibilities across several teams.

User Account

All Pages