How much money would you have at the end of 15 years if you initially invested $7,500 at a nominal interest rate of 9% compounded quarterly for the first 10 years, and 5% compounded quarterly for the last 5 years? Hint: Make sure to use the rounded values that you answered in the previous two questions in your calculations of this answer. Note: When entering your answer, do not use any dollar symbols or any other units. Enter only the value rounded to the nearest integer (nearest dollar). Also, for longer values, do not use any commas.

How much money would you have at the end of 15 years if you initially invested $7,500 at a nominal interest rate of 9% compounded quarterly for the first 10 years, and 5% compounded quarterly for the last 5 years? Hint: Make sure to use the rounded values that you answered in the previous two questions in your calculations of this answer. Note: When entering your answer, do not use any dollar symbols or any other units. Enter only the value rounded to the nearest integer (nearest dollar). Also, for longer values, do not use any commas.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

See similar textbooks

Similar questions

Use the formula for computing future value using compound interest to determine the value of an account at the end of 8 years if a principal amount of $13,000 is deposited in an account at an annual interest rate of 5% and the interest is compounded quarterly. The amount after 8 years will be $ (Round to the nearest cent as needed.) Enter your answer in the answer box and then click Check Answer. All narts showing javascript:doExercise(9); Clear All Check Answer sy Po a 99+
For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Give typing answer with explanation and conclusion Find the interest rate (or rates of return) in each of the following situations. Do not round intermediate calculations. Round your answers to the nearest whole number. You borrow $740 and promise to pay back $814 at the end of 1 year. % You lend $740 and receive a promise to be paid $814 at the end of 1 year. % You borrow $60,000 and promise to pay back $171,156 at the end of 8 years. % You borrow $11,000 and promise to make payments of $3,359.50 at the end of each of the next 5 years. %
Please indicate what you entered into your calculator to solve these problems. 1. You graduated with $28,000 in school loans. You will make annual payments of $4,000 at the beginning of each year for the next 10 years. What annual rate of interest are you being charged on your school loans? 2. You bought equipment for $23,000 and agreed to make monthly payments at the end of each quarter for 5 years. Assuming you are being charged 9% interest compounded QUARTERLY, how much will your QUARTERLY payments be? 3. You currently have $750,000 in your building fund. If you start depositing an additional $20,000 per year into this account at the beginning of each year, how much will be in the account after 6 years assuming 5.5% interest compounded annually? 4. You want to start saving for a new car and have decided to put S$90 per month at the beginning of each month into an account which earns 6% compounded monthly. You would like to be able to buy a car for $25,000. (a) How many deposits will…
Please provide the steps to solving this problem using a financial calculator: You just opened a brokerage account, depositing $3,500. You expect the account to earn an interest rate of 9.652%. You also plan on depositing $4,500 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?
You wish to receive an annuity of $1,000 at the end of each quarter for 5 years. The quarterly interest rate (not the annual interest rate) is 2.5%. How much will you have to invest? (Hint: Looking for present value) Entering your answer: . No dollar signs. . Round to the nearest cent (2 decimal places) . Use commas as appropriate. Only enter the numerical value, no variables, no equal signs
Complete the following using the future value formula or financial calculator. (Do not round intermediate calculations. Round your final answers to the nearest cent.) Time = 4 years Principal = $3,300 Rate = 8% Compounded = Quarterly What is the amount and interest?
2. Using the formula which is attached below, calculate the Future Value of disposable amount of money (5 000 CZK), if you can expect to earn 5% interest compounded annually on that money for the next two years. Prior to calculation fill in the table gaps. manually using TVM functions Principal Interest rate Time period Compounding frequency Total number of compounding periods Future value of money Future value of money (EUR) (as a decimal) (number of years) (times per year) (EUR) (EUR) 5,000 0.05 2 1 2 5,512.50 5,512,50