Answered: . A lady will invest a Php 70,000,000…

. A lady will invest a Php 70,000,000 in a bank that offers a 4 percent annual compounded interest rate. How much will be the future value of the investment after 12 years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 6PROB

See similar textbooks

Related questions

Q: You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Suppose an investment will pay $19,000 in 16 years from now. If you can earn 10.15% interest…

A: Given information: Future value of investment is $19,000 Number of years is 16, Interest rate is…

Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?

A: Lets understand, how to solve it. For solving the question, we need to use below formula. = Amount…

Q: If you are willing to loan someone $100 and expect to be paid back $200 and earn 12% on your…

A: Given Loan amount is $100 Amount to be paid back is $200 Rate of return is 12%

Q: Rainer is planning to invest Php80,000. Bank A is offering 6% compounded semi-annually while bank B…

A: Therefore, the maturity value if the investment done in Bank A is Php107,513.31.

Q: 1)What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what…

A: 1. Investment= $10000 time= 4 years

Q: 7. How much money must be invested by a businessman to obtain an amount of Php 80,000 in 5 years if…

A: 7) Let the investment = X Future value (F) = Php 80000 r = 2.5% n = 5 years

Q: financial manager wants to invest $50,000 for a client by putting some of the money in a low-risk…

A: Interest on investment depends on the prevailing interest rate and period of deposit done and weight…

Q: st inherited some money, and a broker offers to sell you an annuity that pays $16,800 at the end of…

A: Value of annuity is present value of all year end money received over the period of life.

Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: 4. If an investor deposits $20,000 now, $10,000 two years from now and $5,000 per year for three…

A: The perpetual withdrawal beginning 12 years from now will depend upon the value of the investment at…

Q: Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest…

A: Hi there are multiple questions are posted in this post. As per company guidelines expert can answer…

Q: 2. Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to…

A: Annual payment (P) = Php 40,000 Number of annual payments (n) = 10 Interest rate (r) = 9%

Q: Compute the present value of each scenario. Show the complete solution. 1. Your mother is expecting…

A: The present value is calculated as per the concept of time value of money. Here, the future value is…

Q: How much money should a man invest in a bank account paying 8 percent annual interest compounded…

A: Interest Rate = 8% Continuous Compounding Future Value Required = 20,000 T (Time Period) = 4 years…

Q: How much would your investment be worth if you deposited $5,555.55 into a bank that paid compound…

A: Now, Principal amount invested $ 5555.55 for 10 years at 4% compund interest.Therefore, the formula…

Q: How much money should be invested in a financial institution that pays 3.25% simple interest if the…

A: r=3.25%t=5yearsA=450000

Q: SOLVE the following: i. Suppose that your five-year old daughter has just announced her desire to…

A: Money’s value declines with the time. Compounding and discounting are the two ways which considers…

Q: If an investor intends to double $25,000 by investing in a bank that pays 7% interest per year,…

A: The time required to double the investment can be calculated by using the formula of future value .…

Q: Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is offering…

A: The future value of the cash flow is the future worth of a cash flow series at a certain rate of…

Q: if you have to pay 50000 rupees after 10 years and interest rate is 8% in the bank, how much to pay…

A: Present Value Present value is the current value of cash flows that are to be received in future. It…

Q: 2. Suppose Jun invested in a bank that gives a 5% interest rate per annum of 5%, an amount earned…

A: There are two types of interest that may be applicable on an investment; 1) Compound interest, and…

Q: 1. If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in…

A: Present value is the current value of a future amount that is to be received or paid out.Future…

Q: Ali wants to choose a better option for making investment, help him to decide which the better…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: 2. If Wendy wants to invest her Php25,000, how many years will it take for her savings to accumulate…

A: Simple interest is a fixed proportion of the principal amount borrowed or lent that is paid or…

Q: 2. You deposit P25,000 annually for 6 years on an investment that has a rate of return of 5.2% per…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10…

A: The annual deposit is RM10,000. The maturity is 10 years. The interest rate is 8%.

Q: 2. Ali wants to choose a better option for making investment, help him to decide which the better…

A: FV=PV(1+r)n Where,FV=Future ValuePV=Present Valuer=rate of returnn=number of years

Q: How much investment must be made if it is desired to have Php 550, 800 after five years with an…

A: According to the principle of present value, any amount of money in the now is worth more than the…

Q: You will invest Php. 30,000 into an investment that will earn 10% every year for five years. How…

A: Investment = Php 30000 Period = 5 Years Interest rate = 10%

Q: How much would your investment be worth if you deposited $5,555.55 into a bank that paid simple…

A: Total Interestn need to be computed for 10 years period by computing the annual interest on amount…

Q: 1. Mr. Uy, an entrepreneur, invested P 5, 000, 000.00 in a financial institution. a. How long will…

A: The amount of time and interest rate can be solved with the help of simple interest equation.

Q: A person would want to have K143.33 in 4 years time by depositing a single cash of K100 in a bank…

A: Compound interest is one of the ways that money invested earns interest. In compound interest, the…

Q: Donald Trump invests $3 million in a bank that promises to pay 4 percent annual interest rate…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Q: Ali wants to choose a better option for making investment, help him to decide which the better…

A: Using time value of money concept for selecting better option

Q: Suppose you plan to buy the Blacklist Company by investing Php 5,000 every year to an investment…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: 3. If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the…

A: Investment = 5000 Return % = 8% Time Period = 5 years

Q: what is the interest rate of Php 55, 200 become Php 88, 100 after 4 years?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: a) What single investment made today, earning 12% annual interest, will be worth $6,000 at the end…

A: The question is related to Time value of money. The present value is calculated with the help of…

Q: Suppose that you want to earn Php 9,281.25 after 27 months and you have Php 75,000. At what rate…

A: To determine the interest rate.

Q: 3. An engineer wants to make equal annual deposits for years in a bank offering 5% interest so that…

A: To calculate value of deposit at the date of first withdrawal Present value formula is used Present…

Q: Johnny promised Michael to pay Php 50,000 in 6 years’ time. What is the Present Value if the…

A: Solution: Every person invests his/her money to earn something called interest. People invests so…

Q: Omar put OMR 800 in a savings account with a 10% nominal rate of interest compounded daily what will…

A: Deposit = 800 Interest Rate = 10% Time Period = 2 years

Q: a) Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5%…

A: Working:

Question

5. A lady will invest a Php 70,000,000 in a bank that offers a 4 percent annual compounded interest rate. How much will be the future value of the investment after 12 years?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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.
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?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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.
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%