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)
Question: What is the formula for calculating the sum of an arithmetic sequence?
+
Question: Determine the equation of a parabola that opens upward, has its vertex at (3, -1), and passes through the point (2, 5).
+
Math question: What is the limit of (2x^2 - 5x + 3) as x approaches 2?
+
New questions in Mathematics
The random variable Y is defined as the sum between two different integers selected at random between -4 and 2 (both included). What are the possible values of the random variable Y? What is the value of P(Y=-3)? And whether it is less than or equal to -5?
A drawer contains three pairs of white socks, five pairs of black socks and two pairs of red socks. Caden randomly selects two pairs of socks on his way to the gym. What is the probability that both pairs of socks are black?
If L (-2, -5) reflected across y = -4. What are the coordinates of L?
4x-3y=5;x+2y=4
Sean must chose a 6- digit PIN number for his online banking account.Each digit can be chosen from 0 to 9. How many different possible PIN numbers can sean chose.
The sum of two numbers is equal to 58 and the largest exceeds by at least 12. Find the two numbers
A person borrows rm 1000 from a bank at an interest rate of 10%. After some time, he pays the bank rm 1900 as full and final settlement of the loan. Estimate the duration of his loan.
What is the appropriate measurement for the weight of an African elephant?
∫ √9x + 1 dx
User One of the applications of the derivative of a function is its use in Physics, where a function that at every instant t associates the number s(t), this function s is called the clockwise function of the movement. By deriving the time function we obtain the velocity function at time t, denoted by v(t). A body has a time function that determines its position in meters at time t as S(t)=t.³√t+2.t . Present the speed of this body at time t = 8 s.
Buffalo Company makes and sells shampoo. Each unit requires $1.40 labor costs, material costs per unit are $0.90 and other variable costs are $0.30. It sells shampoo for $4.45 to retailers. Fixed costs are $15,000. It sold 25,000 units in the current month. What is the Break-Even point in units? What is the Break-Even point in dollars? What is the contribution margin of Buffalo Company?
(a) List the set of possible rational zeros of the polynomial function F(x) = 2x3 - 11x2 + 13x - 4. (b) Find all rational zeros of F(x). Only do part B
Give an example of a function defined in R that is continuous in all points, except in the set Z of integers.
How to convert 45 kg into grams
A loan is repaid with payments of $2226 made at the end of each month for 12 years. If interest on the loan is 5.2%, compounded semi-annually, what is the initial value of the loan? Enter to the nearest cent (two decimals). Do not use $ signs or commas.
7- A printing company found in its investigations that there were an average of 6 errors in 150-page prints. Based on this information, what is the probability of there being 48 errors in a 1200-page job?
Cuboid containers (open at the top) should be examined with regard to their volume. The figure below shows a network of such containers (x ∈ Df). Determine a function Ζ’ (assignment rule and definition area D) that describes the volume of these containers and calculate the volume of such a container if the content of the base area is 16 dmΒ². Show that this function f has neither a local maximum nor a global maximum
2.3 X 0.8
Mark is gluing a ribbon around the sides of a picture frame. The frame is 11 inches long and 7 includes wide. How much ribbon does Mark need?
15=5(x+3)