A student saved $3,000 per year from 1986 to 2001 (15 years) in an account with 7% interest. He stopped depositing money after year 2001, but the money was kept in the same account earning interest. In 2007 he withdrew $15,000 for down payment toward purchase of a new house. In 2012 he received an inheritance as a single payment of $30,000, which he deposited in the same account. What is the current balance of the account (2021)?

A student saved $3,000 per year from 1986 to 2001 (15 years) in an account with 7% interest. He stopped depositing money after year 2001, but the money was kept in the same account earning interest. In 2007 he withdrew $15,000 for down payment toward purchase of a new house. In 2012 he received an inheritance as a single payment of $30,000, which he deposited in the same account. What is the current balance of the account (2021)?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions

Section: Chapter Questions

Problem 31P

See similar textbooks

Similar questions

On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so that the boy could receive five annual payments of P 10,000 each for his college tuition fees, starting with his 18th birthday. Interest at the rate of 12% per annum was to be paid on all amounts on deposit. There was also provisions that the grandson could select to withdraw no annual payments and received a single lump on his 25th birthday. The grandson choose this option. How much did the grandfather deposit?
Dana Andrews advanced $93, 000 to her nephew in 2016 to enable him to attend a private university. Over the next few years, the nephew repays Dana $16,000 on the loan. However, seven years later Dana comes to you to determine whether she can claim a bad debt deduction for the $77,000 the nephew has not repaid. What planning tips might you give to Dana? Were any mistakes made?
(Please give the detailed solution,thank you) On the day his grandson was born, a man deposited to a trust company a sufficient amount of money so that the boy could receive five annual payments of P10,000 each for his college tuition fees, starting on his 18th birthday. Interest rate of 13.6% per annum was to be paid on all amounts on deposit. There was also a provision that the grandson could elect to withdraw no annual payments and receive a single lump sum amount on his 25th birthday. The grandson chose this option. 1. How much did the boy receive as the single payment? 2. How much did the grandfather deposit?
In 2022, Deborah had a balance of $109,000 in her TFSA. That year, she withdrew $40,000 to fund her nephew's university education. Now, two years later she has received a cash inheritance of $70,000 and wants to contribute the $40,000 that she withdrew, back into her TFSA. She has not made any deposits into the TFSA both this year and last year. What is the maximum she can contribute to her TFSA now that she has the money, and given that the contribution limit was $6,500 last year and $7,000 this year?
Rick deposited $3,300 into an account 14 years ago for an emergency fund. Today, that account is worth $5,930. What annual rate of return did Rick earn on this account assuming no other deposits and no withdrawals?
Katherine received an academic achievement prize of $2,900 from his college. He deposited this money into a savings account on August 15, 2016. If the interest accumulated on the investment when he withdraws the money on May 29, 2017 was $79.81, calculate the annual rate of simple interest that the savings account was providing him. 0.00 % Round to two decimal places
After receiving an inheritance of $50,000 on her 21st birthday, Katlyn deposited the inheritance in a savings account with an effective annual interest rate of 3%. She decided to make regular deposits, beginning with $1000 on her 22nd birthday and increasing by $200 each year (i.e., $1200 on her 23rd birthday, $1400 on her 24th birthday, etc.). What was the future worth of Katlyn’s deposits after her deposit on her 66th birthday?
28. John Jay paid interest expense of $12,000 on his personal residence original first mortgage this year and $5,000 on a $100,000 home equity credit line also secured by a mortgage on his home Half of the home equity credit line loan proceeds were used to put a new roof on the home and the other half was used to purchase a new car. Assuming the acquisition and home equity limits are not exceeded, how much of the total interest expense is deductible on John's Schedule A as qualified home mortgage interest? O$17,000 O$14,500. O$12,000 29 The Browns borrowed $30,000, secured by their home, to pay their son's college tuition. At the time of the loan, the fair market value of their home was $400,000, and it was unencumbered by other debt. The interest on the loan is treated for itemized deductions as ODeductible points. ONon-deductible home equity (mortgage) interest. ODeductible home equity (mortgage) interest.
Last year Nate opened a savings account with a deposit of $17,250. The account was in the name of Nate and Derrick, joint tenancy with the right of survivorship. Derrick did not contribute to the account, but this year he withdrew $5,750. Required: a-1. Has Nate made a complete gift? a-2. What is the amount of the complete gift, if any, and when was the gift made? Complete this question by entering your answers in the tabs below. Req A1 Req A2 What is the amount of the complete gift, if any, and when was the gift made? Amount of complete gift At the time of withdrawal
In year 1, Abby purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with a loan, secured by the residence, at 6 percent. As of January 1, year 4 the outstanding balance on the loan was $40,000. On January 1, year 4, when her home was worth $300,000, Abby refinanced the home by taking out a $120,000 mortgage at 5 percent. With the loan proceeds, she paid off the $40,000 balance of the existing mortgage and used the remaining $80,000 for purposes unrelated to the home. During year 4, she made interest-only payments on the new loan of $6,000. What amount of the $6,000 interest expense on the new loan can Abby deduct in year 4 on the new mortgage as home-related interest expense?
In year 1, Abby purchased a new home for $200,000 by making a down payment of $150,000 and financing the remaining $50,000 with a loan, secured by the residence, at 6 percent. As of January 1, year 4 the outstanding balance on the loan was $40,000. On January 1, year 4, when her home was worth $300,000, Abby refinanced the home by taking out a $120,000 mortgage at 5 percent. With the loan proceeds, she paid off the $40,000 balance of the existing mortgage and used the remaining $80,000 for purposes unrelated to the home. During year 4, she made interest- only payments on the new loan of $6,000. What amount of the $6,000 interest expense on the new loan can Abby deduct in year 4 on the new mortgage as home-related interest expense? Multiple Choice $2,000 $6,000 $0 $5,000
[The following information applies to the questions displayed below.] Javier and Anita Sanchez purchased a home on January 1 of year 1 for $1,000,000 by paying $200,000 down and borrowing the remaining $800,000 with a 6 percent loan secured by the home. The Sanchezes made interest-only payments on the loan in years 1 and 2. (Leave no answer blank. Enter zero if applicable.) b. Assuming year 1 is 2021, how much interest would the Sanchezes deduct in year 2? Maximum deductible interest expense