Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Ask your questions and receive detailed answers from professionals with extensive experience in various fields. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.
Sagot :
Solution :
At every stage the formula used will be :
[tex]$\frac{\text{available balance}}{(1+\text{interest rate})}= \text{required bank balance}$[/tex]
After the junior year, Aunt Mabel's bank balance will be :
[tex]$=\frac{8000}{1.0925}$[/tex]
= $ 7,322.65
Aunt Mabel's bank balance after sophomore year will be :
7,322.65 + 1000 = $ 8,322.65
[tex]$=\frac{8,322.65}{1.0325} $[/tex]
= $ 8060.677
After the freshman year, bank balance of Aunt Mable's will be :
8060.677 + 6000 = $ 14,060.677
[tex]$=\frac{14,060.677}{1.0250} $[/tex]
= $ 14.0606
If Aunt Mabel can predict the interest rate with accuracy, she will have to deposit :
$ 14.0606 + $ 9000 = $ 9,014.06
[tex]$=\frac{9014.06}{1.0525}$[/tex]
= $ 8,565.241
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.