Question

Upon graduation, you receive $1,000 from your rich Uncle Jim. You decide that you will deposit the gift into a money market account that pays 4% interest each year. At this rate, how much would you be able to withdraw in five years just in time for your 5-year reunion? (round to the nearest dollar) $1,170 $822 $5,416 $1,200 $1,217

Name: upon graduation you receive 1000 from your rich uncle jim you decide that you will deposit the gift into a money market account that pays 4 interest each year at this rate how much would you 88827
Uploaded: 2023-10-07T21:58:23-08:00
Duration: 1 min
Channel: Jennifer Stoner
Description: upon graduation you receive 1000 from your rich uncle jim you decide that you will deposit the gift into a money market account that pays 4 interest each year at this rate how much would you 88827

          Upon graduation, you receive $1,000 from your rich Uncle Jim. You decide that you will deposit the gift into a money market account that pays 4% interest each year. At this rate, how much would you be able to withdraw in five years just in time for your 5-year reunion? (round to the nearest dollar)

$1,170
$822
$5,416
$1,200
$1,217

Added by Victor M.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Jennifer Stoner

10/07/2023

Step 1

Future Value = Present Value * (1 + interest rate)^number of years Future Value = $1,000 * (1 + 0.04)^5 Future Value = $1,000 * (1.04)^5 Future Value = $1,000 * 1.2166529024 Future Value = $1,216.65 Show more…

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Upon graduation, you receive $1,000 from your rich Uncle Jim. You decide that you will deposit the gift into a money market account that pays 4% interest each year. At this rate, how much would you be able to withdraw in five years just in time for your 5-year reunion? (round to the nearest dollar) $1,170 $822 $5,416 $1,200 $1,217