3. Carol Stoy invested $1000 at 5% annually for three months. How much interest did shereceived?4. Find the exact time from October 12 to March 28 of the following year (a leap year).5. Suhail invests RM3,850 at 4.5% simple interest in a bank. Find the amount in the accountafter seven months.

• February month of a leap year consists of 29 days. • Under simple interest, Amount = Interest +…

Answered: 3. Carol Stoy invested $1000 at 5%…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1PROB

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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. 2,0000.9264
Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.
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Leslie and Mackoy both opened a savings account with a starting balance of P20,000 on the first day of January. Leslie's bank is paying her a simple interest of 8% annually. Mackoy's bank is paying him an interest of 8% compounded annually. Who has a bigger balance at the end of 5 years?
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On the first day of the year, a man deposits $4,000 in a bank at 8% per year, compounded annually. He withdraws $1,500 at the end of the first year and second year, and he deposit again $2,000 at the end of the third year. What is the remaining balance at the end of the fourth year?
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3. Carol Stoy invested $1000 at 5% annually for three months. How much interest did she received? 4. Find the exact time from October 12 to March 28 of the following year (a leap year). 5. Suhail invests RM3,850 at 4.5% simple interest in a bank. Find the amount in the account after seven months.