You deposit one dollar into a Chase savings account earning 6% interest. Fifteen years later you close out the account. How much money will you withdraw?
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A: Amount of deposit=$5000Interest rate=5.3%Number of years=10
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A: Deposit amount = $ 500 Annual interest rate = 6% Period = 40 Years
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Q: You deposit $400 each month into an account earning 6% interest compounded monthly. How much will…
A: FV of annuity=P1+rn-1rwhere,P=Periodic paymentr=rate per periodn=number of periods
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A: Present Value is a current value of a future amount that is receivable or payable. While, Future…
Q: Each day, you deposit $4.79 into a bank account whose annual rate is 1.6% with daily compounding.…
A: Daily deposit (P) = $4.79 Interest rate = 1.6% Daily interest rate (r) = 1.60%/365 =…
Q: You deposit $3,000 in a bank account that pays 12% interest annually. How much will be in your…
A:
Q: Assume you deposit $5,900 at the end of each year into an account paying 11.75 percent interest.…
A: Annual deposit (P) = $ 5900 Annual interest rate (r) = 11.75%
Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…
Q: If you deposit $5,000 in a bank account that pays 6% interest annually, how much will be in your…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a. How much will…
A: Time value tells that money received today by an individual has more value than that of receiving…
Q: Jenny puts $200 into a savings account today, the account pays an annual interest rate of 5%, but…
A: Compound interest: Compound interest (also known as compounding interest) is the interest on a loan…
Q: You deposit money into a savings account which offers a rate of 5.75% compounded weekly. five years…
A: Future Value (FV)=$20,200 Duration (n)=5*52=260 periods Rate per period (i)==5.75%52=0.0011
Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…
A: Note:- “Since you have asked multiple questions, we will solve the first question for you. If you…
Q: You plan to deposit into your bank account $100 two years from now, $200 three years from now and…
A: A bank provides interest on the amount deposited or invested. Therefore, the withdrawal will consist…
Q: If you deposit $500 in a savings account that offers3 percent interest, compounded annually, and…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: You deposit $1,800 into a 9% account today. At the end of two years, you will deposit another…
A: Deposit now = $ 1800 Interest rate = 9% Deposit 2 years from now = $ 3000 Purchase 5 years from now…
Q: If you deposit $2,000 in a bank account that pays 6% interest annually, how much will be in your…
A: Solution- Given-The present value of deposit is=$2,000The rate of interest is=6%Time is…
Q: John opens a passbook savings account with $100 . It pays 3.5% interest compounded quarterly. What…
A: The question is based on the concept of Future value
Q: Suppose you currently have $4,800 in your savings account, and your bank pays interest at a rate of…
A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…
Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…
A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…
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: You deposit $5,000 in a savings account that earns 6% simple interest per year.How many years will…
A: We can use excel spreadsheet to solve this problem.
Q: John deposits $1500 into a savings account earning simple interest at 2.19% annually. How much will…
A: Calculation of actual amount in account in future: Answer: John will have $1,582.13 in his account…
Q: You deposit $100 each month into an account earning 4% interest compounded monthly. a) How much…
A: Amount Deposited Each month is $100 Interest rate is 4% Compounded monthly Time period is 15 years…
Q: You deposit $1000 each year into an account earning 4% interest compounded annually. How much will…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How…
A: Given, Amount withdrawn each year (P) = $20,000 Rate of interest (i) = 5% or 0.05 Number of years…
Q: You want to be able to withdraw $50,000 each year for 15 years. Your account earns 7% interest. a)…
A: Here, Annual Withdrawals (PMT) is $50,000 Time Duration is 15 years Interest Rate is 7%
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: You deposit $500 each month into an account earning 3% interest compounded monthly. Round to the…
A: We need to use future value of annuity formula to calculate money in account after 25 years Future…
Q: You deposit $400 each month into an account earning 3% interest compounded monthly. Round to the…
A: Monthly deposit (m) = $400 Monthly interest rate (r) = 0.0025 (i.e. 0.03 / 12) Monthly period (p) =…
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much will…
A: Monthly deposit (P) = $ 100 Interest rate = 8% Monthly interest rate (r) = 8%/12 =…
Q: You deposit $4,034 into a 9% account today. At the end of two years, you will deposit another…
A: solution given rate of interest =9% deposit today =$4034 at end of two years another deposit…
Q: How much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank…
A: Given details are : Present value = $1500 Time period = 12 years Interest rate = 5% We need to…
Q: You deposit $300 each month into an account earning 3% interest compounded monthly. a) How much will…
A: Monthly deposit (P) = $300 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 15…
Q: You deposit money into a savings account which offers a rate of 5.75% compounded weekly. five years…
A: we have to calculate weekly interest rate and than calculate present value.
Q: Suppose you want to have $800,000 for retirement in 20 years. Your account earns 6% interest. How…
A: Solution:- When an equal amount is deposited each period, it is called annuity. Future value of…
Q: You deposit $200 each month into an account earning 5% interest compounded monthly. How much will…
A: Future worth of the amount is referred as the worth of the currently deposited amount at some future…
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: You have $20,000 that you put on deposit on your 30th birthday at 5% compounded annually. On your…
A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…
Q: Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and…
A: Just deposit amount = $ 10,000 Deposit after 12 months = $ 10,000 Deposit after 24 months = $ 20,000…
Q: How much money will you accumulate by the end of year 10 if you deposit $3,000 each for the next ten…
A: Annuity payment (PMT)= $3,000 Time period (n)= 10 years Rate of interest (i)= 5% per year Future…
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A: A study that proves that the future worth of the money is lower than its current value due to…
Q: A young man saved his money every quarter for 5 years into his bank a 2 years and P4,000 per quarter…
A: In this we have to calculate the quarterly interest and from that we can get the required value.
Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much…
A: Annuity amount = $100 Monthly rate of interest = 0.6667% (8.00% / 12) Number of months = 300 months…
You deposit one dollar into a Chase savings account earning 6% interest. Fifteen years later you close out the account. How much money will you withdraw?
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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Use 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?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 have decided to start a savings plan for your retirement. You plan to make an annual deposit of $50,000 each year for the next 6 years. The first deposit to be made one year from today. The bank pays a nominal interest rate of 5% annually. How much your savings account with the bank be if you leave the money in the bank to be withdrawn all in 19 years from today? Round to the nearest $0.01. DO NOT use the $sign. Do not use commas to separate thousands. For example if you obtain $1,433.728 then enter 1433.73; if you obtain $432 then enter 432.00 Your Answer: AnswerSuppose you currently have $4,800 in your savings account, and your bank pays interest at a rate of 0.47% per month. If you make no further deposits or withdrawals, how much will you have in the account in 6 years? In 6 years' time, you will have $________ in the account.You deposit $296 today into a bank account that earns 12% annually. How much will be in your account after 25 years? note: show your answer to the nearest dollar (round to nearest dollar).
- A bank account earns 6% simple interest. If you deposit $1,000 and then do not make any additional deposits or withdrawals, what will the balance on the account be after 5 years? Round your answer to the nearest dollar.You deposit $650 in a savings account. How long does it take an account with an annual interest rate of 5% to earn $178.25 in interest? Round your answer to the nearest tenth.You deposit money into a savings account which offers a rate of 5.75% compounded weekly. five years later you find that it contains $20,200. How much money did you originally deposit into the account? a) how much interest did you make?
- A bank will pay you $100 a year for your lifetime if you deposit $2,500 in the bank today. If you plan to live forever, what interest rate is the bank paying?You deposit $5,000 in a savings account that earns 6% simple interest per year.How many years will it take to double your balance? If, instead, you deposit the$5,000 in another savings account that cams 5% interest compounded yearly,how many years will it take to double your balance?Today you are opening a savings account and depositing an initial $5,000 into it. You plan to deposit $6,500 into the account two years from today and deposit another $8,000 four years from today. How much will you have in your account five years from today if you earn an 11 percent rate of return? A) $25,314.60 B) $26,194.89 C) $32,858.63 D) $29,602.37 (Please try to explain by using a Financial Calculator)