Q: Suppose you deposit $469 per week in a bank account for 5 years. The interest rate(APR) is 7.2%,…
A: present value of annuity = P * {1-[1/(1+r)^n]/r} Where, r = rate of interest per period i.e. 7.2%/52…
Q: If $450 is deposited at the end of each quarter into an account paying 10% compounded quarterly, how…
A: The question is based on the concept of Annuity.
Q: How much would you need to deposit in an account each month in order to have $10,000 in the account…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: Suppose that $17,000 is invested in a savings account paying 5.1% interest per year. (a) Write the…
A: Compound interest formula: A = P(1+r/n)^nt Where A is the future amount, P is the principal, r is…
Q: If you deposit $9,000 in a bank account that pays 10% interest annually, how much will be in your…
A: Calculate the future value as follows: Future value = Amount * (1+ rate)^ years
Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…
A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…
Q: How much (in dollars) is needed in an account that earns 10.8% compounded monthly to withdraw $1,000…
A: The formula used as follows: Present value=A1-11+rnr
Q: You deposit $4000 in an account earning 8% interest compounded monthly. How much will you have in…
A: Given information ; P = 4000 r = 8% or 0.08 Compounded monthly so n = 12 t = 15 years
Q: Suppose you owe $600 on your credit card and are paying 14 percent interest. If you pay off the debt…
A: Interest is the amount paid for the usage of the principal borrowed.
Q: If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be…
A: We know that the formula to calculate the accumulated value of cash flow is C*(1+r)n, where C is the…
Q: You have $5,000 invested in a bank account that pays a 6percent nominal annual interest with daily…
A: Amount invested, PV = $ 5,000Interest rate = 6% annual interest rate compounded daily.Hence,…
Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…
A: Computation:
Q: If you invest $7,500 in an account paying 8.35% compounded continuously, how much will be in the…
A: In the simple interest, we calculate the interest amount which we will receive after the specific…
Q: You can earn .44 percent per month at your bank if you deposit $2700 how long must you wait until…
A: We can solve the question using the concept of time value of money. According to the concept of time…
Q: Assume you deposit $5,200 at the end of each year into an account paying 10 percent interest. a.…
A: deposit made at the end of each year = $5200 interest rate annum = 10%…
Q: You plan to make five deposits of $1,000 each, one every 6 months, with the first paymentbeing made…
A:
Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…
A: Option 1: Deposit $ 500 now Future Value = Present Value*(1+ Interest rate)n Solved using Financial…
Q: Suppose I just opened an account today, and it has a $0 balance. Starting next month I will make…
A: Data given: FV= $ 1,000,000 Interest rate= 9% compounded monthly Interest rate per month=…
Q: How long will it take to save $2581.00 by making deposits of $227.00 at the end of every month into…
A: Amount to be saved is $2581.00 Interest rate is 7% compounded monthly Monthly deposit $227 To Find:…
Q: If $6000 is invested in an account. After three years, the account has $7500 in it. If money is…
A: Question is based on the concept of Time value
Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: How much would you need to deposit in an account now in order to have $6,000 in the account in 8…
A: In order to solve this question one has to solve for the present value to know how much to save into…
Q: how much money must you put in a savings account today?
A: PV is the money value in today’s terms which is to be received at some future date whereas FV is the…
Q: You think you will be able to deposit $4,000 at the end of each of the next three years in a bank…
A: Annuity An annuity is the series of payments which is received or paid for a certain period of…
Q: Suppose you deposit $22.000 in an account today that pays 6% interest, compounded annually. How long…
A: Information Provided: Initial deposit = $22,000 Future value = $76,000 Interest rate = 6% compounded…
Q: If you deposit $10,000 in a bank account that pays 10 percent interest annually, how much would be…
A: Future value of a lumpsum deposited today can be calculated using the future value…
Q: 1. If you deposit $28,688 annually at the end of every year in a bank account paying 5% annually,…
A:
Q: Suppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month…
A: Future Value of Cash Flow = Amount Invested * ( 1+r)n Where r is Rate of Interest and n is period…
Q: Each month you put $69.60 into the bank, with an APR of 3%, how much with you have after 10 years.…
A: We will make use fo the financial calculator to calculate the FV. Inputs are: n = number of periods…
Q: If you invest $2,538.00 in an account earning an annual interest rate of 3.153% compounded…
A: Interest is the fee paid to investor for investing funds over a period of time. It is the…
Q: You open a bank account, making a deposit of $300 now and deposit of $1000 every other year (the…
A: Amount deposit now for 10 years = 300 Amount deposited every year from & at the end of 2nd year…
Q: Assuming you will be able to deposit $6000 at the end of each of the next four years in a bank…
A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…
Q: You think you will be able to deposit $4,000 at the end of each of the next three years in a bank…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: If you put $259 into a bank account that pays 3.5% interest, compounded 9 times per year, how much…
A: Workings:
Q: You deposit $350 each month into an account earning 3% interest compounded monthly. a) How much will…
A: Given, Deposit amount (C) = $350 each month Timer period (n) = 35 years*12 = 420 interest rate (i) =…
Q: Suppose that $12,000 is invested in a savings account paying 5.6% interest per year. (a) Write the…
A: The future value is the amount to be received in future which were invested in an account which…
Q: how much should you deposit in a bank paying 2% compounded quarterly to accumulate an amount of…
A: Present value of annuity is the current value of the future payments that are calculated using the…
Q: If you deposit $13,.224 annually at the end of every year in a bank account paying 8% annually. how…
A: Annual deposit (D) = $13,224 Period (n) = 5 Years Interest rate (i) = 8% (or 0.08) Amount saved at…
Q: money is in your account after 16 months?
A: Given: Investment amount = $3000 APR = 3% compounded monthly Since, Interest is compounded monthly,…
Q: Suppose that $1,500 is placed in a bank account at the end of each quarter over the next 20 years.…
A: Use the following formula to calculate the effective interest rate (EIR). Where i is the effective…
Q: Suppose you deposit $125 on the first of every month for 240 months, and the bank credits interest…
A: The term annuity depicts a stream of equivalent periodic cash flows over a specific time duration.…
Q: How much would you need to deposit in an account now in order to have $6000 in the account in 15…
A: Present Value is the today's value of a future amount at a given interest rate for a specified time…
Q: You deposit $600 each month into an account earning 4% interest compounded monthly. a) How much…
A: The future value of the account can be calculated with the help of future value of annuity function.…
Q: If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your…
A: In the given question we require to compute the future value from following details: Present value =…
Q: If an investment of $5,000 is made in an account returning 2% ,then how long will it take for the…
A: Future value is the value of the current assets or some amount that is invested today and amount…
Q: You deposit $4000 in an account earning 2% interest compounded daily. How much will you have in the…
A: Given, Deposit amount = $4000 Interest rate = 2% Compounding = Daily
Q: Suppose a bank pays you 4% interest compounded quarterly. You deposited $10,000. How much will you…
A: If interest is computed on the actual loan amount, then it is simple interest. When the interest is…
If you deposited $35000 and the bank is paying 4% interest compounded every 4 months, how much would be your account at the end of 240 days?
Step by step
Solved in 5 steps with 2 images
- 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.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 $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?if you deposit $17,000 in the bank today, you will be able to withdraw $24,000 from the account in six years. what is the implied rate that the back is paying?If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be your account at the end of two year and 2 months?
- Suppose a bank pays you 4% interest compounded quarterly. You deposited $10,000. How much will you have in your account after three years?Suppose you deposit $100,000 in an account today that pays 6% interest, compounded annually. How long does it take before the balance in your account is $500,000?How much would you need to deposit in an account now in order to have $5,000.00 in the account in 13 months? Assume the account earns 4.04% simple interest.
- Suppose you have accumulated $22,000 in credit card debt. If the interest rate on the credit card is 22.7% APR compounded monthly, how many years will it take you to pay off this debt if you pay $500 per month?If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a function f (r) of the interest rate, r%. At 7% interest (compounded monthly), f (7) = 2568.10 and f (7) = 25.06. Approximately how much additional money would you earn if the bank paid 7 1/2 % interest?You deposit $700 each month into an account earning 3% interest compounded monthly. a) How many months will you need to make deposits to reach a value of $40000 ? $ b) How much total money will you put into the account? $ c) How much total interest will you earn?
