Question

48. It’s Friday, and you decide to save your change from your pockets each day for the coming week and, take the amount each Friday to save in the bank. If you save $20 a week for 10 years at 6 percent interest? Assume the first payment occurs at the end of the first week and that there are exactly 52 weeks in a year, how much will you have saved in 10 years?

49. The Hippie Food Store is planning a major expansion for 4 quarters (a year) from today. In preparation for this, the company is setting aside $50,000 each quarter, starting today, for the next 3 quarters, 4 amounts in total. How much money will the firm have when it is ready to expand if it can earn an average of 6 percent on its savings?

50. A kid has decided to save 20% of his “paper-round” weekly pay, or $10 in an online appthat invests small amounts in the stock market. If the kid makes her first deposit today, and does the same for the rest of the year, how much will she have at the end of the year if the average weekly returnon the broad stock market is expected to be .134% (you should assume 52 weeks in a year, AND she makes 52 deposits at the beginning of each week)?

Answer 1

48)

A/c balance after 10 years Px[(1+r)^n-1]=r Here, 6% 10 A Interest rate per annum B Number of years C Number of payments per per annum A:C Interest rate per period (r) BxC Number of periods (n) Payment per period (P) 52 0.115% 520 20 A/c balance after 10 years $ 14,239.14 20x((1+0.115%)^520-1):0.12%

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