Emily To celebrate her first birthday, Emily\'s parents deposited, on that date,

Question

Emily To celebrate her first birthday, Emily's parents deposited, on that date, $12,500 into a savings account that earns a fixed rate of 8.00% and compounds interest annually. How much money will have accumulated in Emily's account as of her 22nd birthday? Round your answer to the nearest dollar On her 22nd birthday, Emily's account will have a balance of: O $31,478 O $67,956 O $62,923 What-If Scenario 1 The account balance would What would have been the balance in Emily's account if her parents had waited until her 10th birthday to make their initial deposit into the account? decrease to: O $62,923 O $67,956 O $31,478 What-If Scenario 2 Emily's parents would have had to deposit If Emily's parents wanted to accumulate an account balance of $35,000 as of her 22nd birthday, then how much should they have placed on deposit on her first birthday? O $13,899 O $6,953 O $6,438

Explanation / Answer

a) Rate = 8%
time = 22 Years
Amount on 22 years = 12500*(1+8%)22 = 67956

b) Rate = 8%
time = 12 Years
Amount on 22 years if deposited started at 10 years = 12500*(1+8%)12 = 31478

C) Amount at 22 birthday required = 35000
Amount depositd after 1st year = 35000/(1+8%)22 = 6438

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