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 result of adding vector A, with components (2, 3), and vector B, with components (5, -2)?
+
What is the value of f(x) when x = 10 in the logarithmic functions f(x) = log(x) and f(x) = ln(x)?
+
What is the average score of a class where half of the students scored 80 and the other half scored 90?
+
New questions in Mathematics
How much volume of water in MegaLiters (ML) is required to irrigate 30 Hectare crop area with depth of 20mm?
Let 𝑢 = 𝑓(𝑥, 𝑦) = (𝑒^𝑥)𝑠𝑒𝑛(3𝑦). Check if 9((𝜕^2) u / 𝜕(𝑥^2)) +((𝜕^2) 𝑢 / 𝜕(𝑦^2)) = 0
If we have the sequence: 3, 6, 12, 24 Please determine the 14th term.
Let the vectors be u=(-1,0,2) , v=(0,2,-3) , w=(2,2,3) Calculate the following expressions a)<u,w> b) &lt;2u- 5v,3w&gt;
8x²-30x-10x²+70x=-30x+10x²-20x²
Eight acts are scheduled to perform in a variety show how many different ways are there to schedule their appearances show your work
5) A family with a father, mother and 3 children must sit on five chairs in a row and the only restriction is that the mother must be at one end. In how many different ways can they be seated?
A client did not advance L 10,000 for the rental of a parking area and it corresponds to 4 months, of which 2 months were consumed
Determine the absolute extrema of the function 𝑓(𝑥)=𝑥3−18𝑥2 96𝑥 , on the interval [1,10]
what is the annual rate on ​$525 at 0.046​% per day for 3 months?
7/6-(-1/9)
Identify a pattern in the list of numbers.Then use this pattern to find the next number. 37,31,25,19,13
By direct proof, how can you prove that “The sum of any three consecutive even integers is always a multiple of 6”.
I need to know what 20% or £3292.75
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.
In the telephone exchange of a certain university, calls come in at a rate of 5 every 2 minutes. Assuming a Poisson distribution, the average number of calls per second is: a) 1/8 b) 1/12 c) 1/10 d) 2/5 e) 1/24
I. Order to add 40.25+1.31+.45 what is the first action to do ?
1. A jeweler has two gold bars, with 80% purity and the other with 95% purity. How much of each must be melted to obtain a 5 kilo ingot with 86% purity?
To find the increased amount on a standard term deposit with the following conditions: starting amount: BGN 13000, type of deposit: annual, annual compound interest rate: 1.4%, after 4 years;
the length of the fenced in area is to be 5 ft greater than the width and the total amount of fencing to be used is 89 ft find the width and length