Your parents tell you that if you apply yourself and earn a minimum grade of B - in Finance 3101, they will reward you by depositing in your account $2,050 next year, $3,500 the following year and $4,500 the year after that. If you can earn an annual rate of 6%, how much would you have in your account immediately after your parents' final deposit?
Your parents have promised you possible deposits of $2,050, $3,500 and $4,500 at the end of the next three years, respectively. If your parents can earn 4% per year, what size of a one-time deposit would they have to make today in order to keep their promise?
A security that promises to pay annual interest or $250 forever and has an annual interest rate of 7% would have a price of You deposit $200 at the end of each of the next 17 years earning 5.25% per year. What would your balance be at the end of the 17 years?