Mr. Walid wishes to open a deposit account, he makes 3 deposits: 1 now for $5, $10 after 7 years and $20 at the end of 8th year. The interest rate is 6% per year. Draw the cash-flow diagram
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Mr. Walid wishes to open a deposit account, he makes 3 deposits: 1 now for $5, $10 after 7 years and $20 at the end of 8th year. The interest rate is 6% per year.
Draw the cash-flow diagram
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- Suppose you receive $100 at the end of each year for the next 3 years. a) if the interest rate is 8%, what is the present value of the cash flows? b) what is the future value in 3 years of the present value you compute in a? c) suppose you deposit the cash flows in a bank account that pays 8% interest in a year. What is the balance in the account at the end of each of the nest 3 years (after your deposit is made)? How does the final bank balance compare with your answer in b?Suppose you receive $190 at the end of each year for the next three years. a. If the interest rate is 7%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 7% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?Fahrin plans to withdraw his money RM 10,000 each year from his savings account at the end of year 10 and Year 11. To make sure these withdrawals are possible, FOUR (4) annuity amounts (A) will be deposited in a bank at the end of year 2, 3, 4, and 5. The bank's interest rate is 12% per year. (a) Draw a cash-flow diagram for this situation
- Calculate the final balance on each bank account after making deposits in them with the following terms: A) A bank account that pays 3.5% per yearly period (i.e. the EAR) for the next 3 years in total. If you deposit $1 into a bank account that pays 3.5% per year for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places) B) A bank account that pays 2.3% every 6-month period for the next 3 years in total. If you deposit $1 into a bank account that pays 2.3% every 6 months for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places) C) A bank account that pays 8.0% per 18-month period for the next 3 years in total. If you deposit $1 into a bank account that pays 8.0% every 18 months for 3 years, the amount you will receive after 3 years is $ (Round your answer to five decimal places)Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)? a. If the interest rate is 8%, what is the present value of these cash flows? The present value of these cash flows is $ |. (Round to the nearest cent.) b. What is the future value in three years of the present value you computed in (a)? The future value in three years is $ (Round to the nearest cent.) c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)?…Find the equivalent present worth of the cash receipts in the accompanyingdiagram, where i = 8% compounded annually. In other words, how much doyou have to deposit now (with the second deposit in the amount of $600 at the end of the first year) so that you will be able to withdraw $300 at the end of the second year through the fourth year, and $800 at the end of the fifth year, where the bank pays you 8% annual interest on your balance?
- Patrick and Brooklyn are making decisions about their bank accounts. Patrick wants to deposit $300 s principal amount, with an interest of 3% compounded quarterly. Brooklyn wants deposit $300 as the principal amount, with an interest of 5% compounded monthly. Explain which method results in more money after 2 years. Show all work.You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded 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. Year Year Beginning Balance Interest Year End Balance 1 $250.00 2 3 4 5 PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Present Value (PV) PV FV Factor Future Value (FV) PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).With cash flow diagram. A young man saved his money every quarter for 5 years into his bank account. He deposits P2,000 per quarter for the first 2 years and P4,000 per quarter for the next 3 years. If the interest rate is 12% compounded bi-monthly, how much is the accumulated after his last deposit? a)71,311 b)74,611 c)82,231 d)68,433
- How much do you have to deposit now with a second deposit in the amount of $700 at the end of the first year) so that vou will be able to withdraw $150 at the end of the second year through the fourth year, and $400 at the end of the fifth and sixth year, if the bank pays you 4% annual interest on your balance Use factor method and draw a cash flow diagramFind the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8% compounded annually. In other words, how much do you have to deposit now (with the second deposit in the amount of $1,000 at the end of the first year) so that you will be able to withdraw $600 at the end of the second year through the fourth year , and $ 800 at the end of the fifth year , where the bank pays you 8% annual interest on your balance ?1. You deposited PHP5,500 in a bank with an interest rate of 6% for I year. What is the future value of your deposit?