Question

For his trip, Davis deposited $24943 into an account paying 4% per year, compounded annually. Unfortunately, he had a medical emergency at the end of year 5 and had to withdraw $2389. At the end of year 7 he received a small inheritance and deposited $2116 into his account. How much did Davis have in his account at the end of 13 years?

Answer 1

F = P(1+i)^n - 2389 + 2116

Answer 2

@R.Hamza17

Answer 3

@R.Hamza17

Answer 4

The 4"% only pertains to the 24943?

Answer 5

First of all you should find out the maturity value for 5 years. Than you should subtract the amount he had withdrawn from his account. Now on the new value again find the maturity amount for 2 more years. Now again add the amount he have got from his inheritance in the total amount. Noe after adding the amount again find the maturity amount for 6 more years than you will get the correct answer

Answer 6

Okay so finding the maturity level I need to use F = P(1+i)^n?

Answer 7

Step 1:
P=24943
i=4%
t=5

Answer 8

Yes you have to use this formula

Answer 9

okay I got 30346.97

Answer 10

Step 2:
A-2389=P
Step 3:
Using above P and the n=2 find A.
Step 4:
Now add 2116 into A=P
Step 5:
Now using this P and n=6 find A which will be your answer

Answer 11

yes I get p = 30346-2389 = 27957.97

Answer 12

Hey you can go help other ppl I am still working on it.

Answer 13

Now follow the next steps to your answer

Answer 14

What do you mean by using the above p?

Answer 15

nvm got it

Answer 16

I don't really quite understand how to solve step 2 because I don't know what I can do with A-2389=P

Answer 17

I use F instead of A

Answer 18

F-2389 = P

SO the previous F I found is 30346.97334 then I solve for P?

Answer 19

The value of P you got in the upper step use it and subtract the amount she have withdrawn.

Answer 20

Step 1 I didn't solve for P I was given P

Answer 21

F = p(1+i)^n
A=p(1+i)^n

Answer 22

In step 1 you were given P so you have to find A or F

Answer 23

Okay which I did F = 30346.97

Answer 24

Great now go for step 2

Answer 25

30346 - 2389 = P

Answer 26

Okay now after subtraction again use the formula to find it for the next 2 years

Answer 27

at the same inerest, 4%

Answer 28

I will BRB got to go to my instructors office hours for another class. I think I've got this one figure out. IF I have any further questions I will let you know.

Answer 29

Okay. The interest rate will remain the same for all the steps which is 4%

Answer 30

Hey I am back sorry for the late delay. I got caught up in other things after meeting up with my instructor.

Answer 31

Okay so what can I help you with now?