A. Zoey deposits $500.00 every quarter into an account earning 5% interest compounded quarterly. How much will Zoey have in the account in 15 years? Zoey will have $44287.25 in the account in 15 years. B. Alternatively, Zoey could make a single deposit into an account earning 5% compounded quarterly for 15 years. How much would the lump sum deposit (single deposit) have to be in order to have saved the same amount of money in the account? Zoey would have to make a lump sum deposit of_____
A. Zoey deposits $500.00 every quarter into an account earning 5% interest compounded quarterly. How much will Zoey have in the account in 15 years? Zoey will have $44287.25 in the account in 15 years. B. Alternatively, Zoey could make a single deposit into an account earning 5% compounded quarterly for 15 years. How much would the lump sum deposit (single deposit) have to be in order to have saved the same amount of money in the account? Zoey would have to make a lump sum deposit of_____
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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A. Zoey deposits $500.00 every quarter into an account earning 5% interest compounded quarterly. How much will Zoey have in the account in 15 years?
- Zoey will have $44287.25 in the account in 15 years.
B. Alternatively, Zoey could make a single deposit into an account earning 5% compounded quarterly for 15 years. How much would the lump sum deposit (single deposit) have to be in order to have saved the same amount of money in the account?
- Zoey would have to make a lump sum deposit of_____
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