Answered: A businessman deposited an amount of…

A businessman deposited an amount of P6,000 in a savings account for 5months and 25 days at a rate of 7% per annum. Find the accumulated amount.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 3MC: Refer to the present value table information on the previous page. If Kathleen put 3,000 in a...

See similar textbooks

Related questions

Q: You borrowed money from the bank with a simple interest 8%, find the present worth of P25,000, which…

A: In Simple Interest Case, FV = PV + (PV x r x n) FV = PV x {1 + (r x n)} Therefore, PV = FV / {1 + (r…

Q: Most people prepare for retirement by depositing money into a monthly or annual savings plan. An…

A: Here, Monthly Deposit is $454 Nominal Interest Rate is 19% Compounding Period is Quarterly i.e 12

Q: How much should be deposited deposited in a bank paying 1.15% compounded semi – annually to…

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is the future value…

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

Q: An investor deposits €10,000 in a bank account that pays simple interest at a rate of 5. What will…

A: Time value of money: The time value of money is the idea that the value of money received today…

Q: An amount of money P is deposited in a savings account that pays interest at a rate of r percent per…

A: It is simple formula which compounds the principal amount at number of times in a year. We use this…

Q: Mr. Samal deposits 5,000 php at the end of each month at a product with an interest rate of 8%…

A: In the given question, compounding is done on monthly basis. Therefore, effective monthly rate will…

Q: Find the compound interest earned if PhP 30,860 is deposited in a bank at 2.8% compounded monthly…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: A businessman deposited an amount of P6,000 in a savings account for 5months and 25 days at a rate…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Daryl Yap invested the amount of Php100,000 in a bank that offers 15 % per annum simple interest.…

Q: Shelley Katz deposited $30,000 in a savings account at 5% interest compounded semiannually. At the…

A: Present value is the current worth of the future expected cash flows that an investor obtain from…

Q: .Three years ago,an amount of RM3,000 was deposited in a savings account that paid interest at 4.5%…

A: Using excel FV function

Q: Sophia deposits 130,000 pesos at the end of each year in a savings account that pays a nominal rate…

A: Compounding that is constant is referred to as continuous compounding. Some people imagine…

Q: You borrowed $5,646 from a bank, which charges 7.8% interest per year. How much interest did you owe…

A: Principal =$5646 Interest = 7.8%

Q: Diego invested 10,500 the bank gives him 2,520 simple interest per month.If you receive 2,520 as…

A: Solution:- Interest means the increase in amount invested for a certain time period for deferring…

Q: How much cash must be deposited in a savings account (as a single amount) in order to accumulate…

A: According to the policy we are supposed to solve one question at a time. Kindly repost further…

Q: Miss Calledo deposited P 1,000, P 1,500 and P 2,000 at the end of the 2nd year, 3rd year and 4th…

A: Future Value(FV) is worth of current amount at future point that is computed by compounding current…

Q: P3,500 was deposited in a bank account 15 years ago. Today it is worth P10,000. Interest is paid…

A: Deposit amount (P) = P 3500 Period = 15 Years Number of weeks per year (m) = 52 Number of weekly…

Q: Mr. Palting deposited P100,000 on a bank bearing an interest of 12% compounded quarterly. At the end…

A: given, pv = P100,000 A= P30,000 at end of 5 years for next 4 years R=12% M=4

Q: (a) Bill made deposits of $200 at the beginning of each month into a savings account for 12 years…

A: In compound interest, the interest earned is reinvested because of which we earn even more interest…

Q: Leslie and Mackoy both opened a savings account with a starting balance of P20,000 on the first day…

A: Given: Balance = P20,000 Interest rate = 8% Periods = 5 years

Q: How much will be her savings after 8 years?

A: PMT is $6,000 semi annually, n= 12 compounding monthly, t=1/2 , 1, 3/2 , 2, 5/2, 3, .....8 which is…

Q: A bank offers an investment account with an annual interest rate of 1.49% compounded quarterly.…

A: Using excel FV function

Q: Twelve years ago, you deposited RM3,400 into an account. Seven years ago, you added an additional…

A: FV = PV* (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest (percentage…

Q: How much money deposited at the end of each year in a savings account that pays 9 % per year ,…

A: An annuity is a series of regular payments made at regular intervals. It earns interest as and when…

Q: JP just made a deposit of $4,321 is made today in an account earning 5.3% APR compounded annually.…

A: Data given: P=Deposit amount = $4,321 r=Rate = 5.3% APR compounded annually n= 15 years Required:…

Q: An individual makes five deposits that increase uniformly by Php. 300.00 every month in a saving…

A: Number of deposits = 5 Annual increase in deposits = Php 300.00 First deposit = Php. 4500.00…

Q: A person invested two amounts in a bank for a full year at a common interest rate. The total…

A: in this question one has to find the interest of the first amount in numerical terms as well as in…

Q: MJ deposited 1,000, 1,500, and $2,000 at the end of the 2nd year, 3rd year and 4th year,…

A: The future value of deposits refers to the sum of the value of the deposits with the interest earned…

Q: Matthew has $40,000 invested in a checking account paying 3.7% per year and a savings account paying…

A: The actual interest earned by Matthew during the year is equal to $ 40,000 X 5.5 % = $ 2,200. The…

Q: How much money was originally invested?

A: Simple interest is a method for calculating the interest for loans and other borrowings. It identify…

Q: A person invested two amounts in a bank for a full year at a common interest rate. So the total…

A: Interest is amount paid by borrower and received by lender in exchange of funds. Interest is charged…

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: Calculate (a) the interest payable and (b) the total amount owing on the following deposits at…

A: Here in this question we are required to calculate simple interest. Simple interest is a interest…

Q: you deposited ₱5,000 from the savings of your daily allowance in a time deposit account with your…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount invested is…

Q: Suppose you deposit $2899 into an account today In six years the account is worth $3,754 the account…

A: The formula of discount rate has been derived from the formula of future value. The formula is:

Q: A deposit of $3,000 is made in a savings account that pays 7.5% interest compounded annually. How…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: Emily invested his savings of $1,625 in a savings account that was earning simple interest at 4.26%…

A: Effective rate is a rate at which interest is received actually and nominal rate is rate which is…

Q: A person deposited an amount of 1000 dinars in a savings account, what is the accumulated amount in…

A: Future value of Investment: After compounding for a particular duration, interest rate, additional…

Q: Find the accumulated amount of P 1000 after 5 years when deposited in a bank at a rate of 16%…

A: Future value: It is the future worth of the sum of money compounded at a particular rate of…

Q: An amount of ₱234,000 is deposited in a bank paying an annual interest rate of 6.15%, compounded…

A: Solution:- Continuous compounding means that the interest is getting compounded every moment. Future…

Q: Mr. Ali has invested an amount of Rs101, 876 in a Bank scheme. Bank credits profit of 7% each year,…

A: Given Information: Investment (Present Value) : Rs. 101,876 Profit (Interest rate): 7 % Bank fee…

Q: On the first day of the year, a man deposits ₱1,000 in a bank at 8% per year compounded annually.…

A: Future value at the end of one year = 1000 * 1.08 = 1080 amount remaining after he withdraws = 1080…

Q: Ericson deposited PhP 35,000 into his savings account that earns 4% interest. How much will he have…

A: Interest is calculated by multiplying the principal and rate by the time period.

Q: A guy deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year,…

A: Year 2 deposit = P4000 Year 3 deposit = P4500 Year 4 deposit = P5000 Interest rate = 0.09

Q: Daniel deposited (RM 6000 + m) in a savings account for 12 years at a nominal rate of 9% compounded…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: Oliver Lopez deposits $12,000 in a bank account that pays 7% annual interest. Calculate the balance…

A: Deposit amount = $ 12,000 Annual interest rate = 7% Period = 5 Years

Question

· A businessman deposited an amount of P6,000 in a savings account for 5months and 25 days at a rate of 7% per
annum. Find the accumulated amount.
6,201.37
6,202.83
6,200.82
6,204.17

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

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

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions Kristen Quinn makes equal deposits of $500 semiannually for 4 years. Required: What is the future value at 8%? (Note: Round answers to two decimal places.)
Refer to the present value table information on the previous page. If Kathleen put 3,000 in a savings account today, what amount of cash will be available 2 years from today? a. 3,000 0.857 b. 3,000 0.857 2 3,000 c. 4,000 0.681 0926 d. cannot be determined from the information given
A ski company takes out a $400,000 loan from a bank. The bank requires eight equal repayments of the loan principal, paid annually. Assume no interest is paid or accumulated on the loan until the final repayment. How much of the loan principal is considered a current portion of a noncurrent note payable in year 3? A. $50,000 B. $150,000 C. $100,000 D. $250,000
Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.
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
Sunlight Growers borrows $250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank? A. $250,000 B. $10,000 C. $252,500 D. $2,500
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.
Determine how much $1,000 deposited in a savings account paying 8% (compounded annually) will be worth after 5 years. a. $5,526 b. $1,400 c. $784 d. $1,469
A deposit of $3,000 is made in a savings account that pays 7.5% interest compounded annually. How much money will be available to the depositor at the end of 16 years? a. $8,877 b. $10,258 c. $9,542 d. $943.