Question

2.- Cristina wishes to make a deposit of $50,000 in a financial institution, in order to continue making ten additional deposits every six months for an identical amount, where the first of them will be made within six months. If the financial institution offers and pays 10% every six months, how much will Cristina withdraw six months after the last deposit?

52

likes
262 views

Answer to a math question 2.- Cristina wishes to make a deposit of $50,000 in a financial institution, in order to continue making ten additional deposits every six months for an identical amount, where the first of them will be made within six months. If the financial institution offers and pays 10% every six months, how much will Cristina withdraw six months after the last deposit?

Expert avatar
Rasheed
4.7
110 Answers
To find out how much Cristina will withdraw six months after the last deposit, we need to calculate the future value of all deposits first.

The formula to calculate the future value of an ordinary annuity is:
FV = P \times \left( \dfrac{(1 + r)^n - 1}{r} \right)
where:
- FV is the future value of the annuity
- P is the amount of each deposit
- r is the interest rate per period
- n is the total number of periods

Given:
- P = $50,000
- r = 10\% = 0.10 (interest rate per six months)
- n = 20 (10 deposits every six months for a total of 20 periods)

Plugging in the values, we get:
FV = $50,000 \times \left( \dfrac{(1 + 0.10)^{20} - 1}{0.10} \right)
FV = $50,000 \times \left( \dfrac{(1.10)^{20} - 1}{0.10} \right)

Now, we calculate the future value:
FV = $50,000 \times \left( \dfrac{6.727499 - 1}{0.10} \right)
FV = $50,000 \times 57.27499
FV = $2,863,749.50

Therefore, Cristina will be able to withdraw $2,863,749.50 six months after the last deposit.

\boxed{Answer: $2,863,749.50}

Frequently asked questions (FAQs)
What is the variance of the data set {4, 5, 1, 2, 3}?
+
Math question: Find the length of the hypotenuse in a right triangle with one side measuring 24 units and the other side measuring 7 units.
+
Question: Solve the inequality 3x + 6 > 15, where x represents a real number.
+
New questions in Mathematics
A food delivery company charges on average a delivery fee of $5 per order (including food and shipping) and has monthly fixed costs of $600. If the average cost of each meal delivered that is revenue for the company is $10 and the company has a monthly profit of $800, how many orders must they deliver per month?
The graph of the equation x²= 4py is a parabola with focus F(_,_) and directrix y=_____ Therefore, the graph of x²=12y is a parabola with focus F(_,_) and a directrix y=_____
(5u + 6)-(3u+2)=
The equation of the circle that passes through (5,3) and is tangent to the abscissa axis at x=2 is a.(x-2)^2 (y 3)^2 = 9 b.(x-2)^2 (y-3)^2 = 9 c.(x-2)^2 (y-3)^2 = 4 d.(x-2)^2 (y 1)^2 = 4 e.(x-2)^2 (y-1)^2 = 4
Pedro had 80% of the amount needed to buy a game. Of this amount, you spent 15% on a watch and therefore, you will need to add another R$640.00 to purchase this game. Is the value of the game?
Convert 78 percent to a decimal
According to a survey in a country 27% of adults do not own a credit card suppose a simple random sample of 800 adults is obtained . Describe the sampling distribution of P hat , the sample proportion of adults who do not own a credit card
The sum of two numbers is 144. Double the first number minus thrice the second number is equal to 63. Determine the first two numbers.
The sick-leave time of employees in a firm in a month is normally with a mean of 100 hours and a standard deviation of 20 hours. Find the probability that the sick-leave time of an employee in a month exceeds 130 hours.
Solve equations by equalization method X-8=-2y 2x+y=7
If the regression equation is given by 4x –y + 5 = 0, then the slope of regression line of y on x is
How to convert 45 kg into grams
In a 24 hours period, the average number of boats arriving at a port is 10. Assuming that boats arrive at a random rate that is the same for all subintervals of equal length (i.e. the probability of a boat arriving during a 1 hour period the same for every 1 hour period no matter what). Calculate the probability that more than 1 boat will arrive during a 1 hour period. (P(X>1) ) Give your answers to 4 decimal places and in a range between 0 and 1
In poker, a full house consists of five cards, where two of the cards have the same number (or letter) and the remaining three also have the same number (or letter) as each other (but not as the previous two cards). Use a search engine or Wikipedia to understand the concept better if necessary. In how many different ways can one obtain a full house?
At the end of a lively discussion within your study group, your class neighbor, for the relevance of your points of view, asks your opinion on the subject of their debate which is the following question Am I the slave of my unconscious? Solve the problem posed by this subject in an argumentative production.
Solve for B write your answer as a fraction or as a whole number. B-1/7=4
Consider the function f(x)=1/2(x+1)^2-3. Use the preceding/following interval method to estimate the instantaneous rate of change at 𝑥 = 1.
if y=1/w^2 yw=2-x; find dy/dx
Marc, Jean and Michelle have traveled a lot. Marc drove twice as much as Jean, but it was Michelle who drove the most with 100km more than Marc. They respected their objective of not exceeding 1350km of distance. How far did John drive?
The slope of the tangent line to the curve f(x)=4tan x at the point (π/4,4)