A sum of $2000 is deposited in a time-deposit account that pays interest at a rate of 3% per annum. Find the amount after 2 years if the interest is paid (b) The population P of a city n years after the beginning of 2019 is estimated by 20000(1.02)". After how many years (n) the population will just over 40000? P =

A sum of $2000 is deposited in a time-deposit account that pays interest at a rate of 3% per annum. Find the amount after 2 years if the interest is paid (b) The population P of a city n years after the beginning of 2019 is estimated by 20000(1.02)". After how many years (n) the population will just over 40000? P =

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

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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.
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.
Suppose an individual makes an initial investment of $2500 in an account that earns 7.8%. compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to s0). (a) How much is in the account after the last deposit is made? b) How much was deposited? (c) What is the amount of each withdrawal? (d) What is the total amount withdrawn?
The company is going to invest ₱26,000, ₱34,000, ₱46,000, and ₱54,000 respectively into a savings account at the end of each year through 4 years. Each of these amounts will compound at 4% per annum until the 4th year. What is the total expected amount that the company will have at the end of the 4th year? (Do not round off between computations. Round off the final answer to two decimal places. Example of writing your answer 64,125.91)
An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account at the end of the first year, and the deposits increase by 2000 dollars each year (12,000 is the second year’s deposit, etc.) What is the amount in the account at the end of 20 years and what is the present value?
If $10,000 is invested in a certain business at the start of the year, the investor will receive $3,000 at the end of each of the next four years. What is the present value of this business opportunity if the interest rate is 4% per year? A. $1,068 B. $890 C. $445 D. $1424
HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of $55,000. To pay for the replacement, a sinking fund has been established into which equal payments are made at the end of every quarter. Interest is 7.5% quarterly. (a) What is the size of the periodic payment? (b) What is the accumulated balance just after the 32th payment?
1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. (a) If the account was subject to a force of interest δ(t) = kt where t is in years, k =? (b) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?
RD Inc. projects the following quarterly expenses over a 2-year period of time beginning 3 years and 3 months from now. What quarterly deposits must the company make over the next 3 years to pay these expenses up front? Alternatively, what lump sum deposit could the company make today to fund this future spending? Interest is 8% annual, compounded quarterly. Quarter quarter 0 1 2 3 4 5 6 7 8 cf 0 100000 105000 110000 115000 120000 125000 130000 135000
CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next eight years. How much will accumulate by the end of the eighth and final payment if the account earns 8% interest? Select one: a. $265,915 b. $256,951 c. $223.070 d. $200,000 e. $275,713
Today $5000 is deposited in an account that earns 2.5% per quarter. Additional deposits are made at the end of every quarter for the next 20 years. The deposits start at $100 and increase by $50 each year thereafter. The amount that has accumulated in this account at the end of 20 years can be expressed as follows. (a) = 5000(P/F, 2.5%, 20) + 100(F/A, 2.5%, 20%) + 50 (P/G, 2.5%, 20 − 1) (b) = 5000(F/P, 10%, 80) + 150(P/G, 10%, 80) (F /P = 10%, 80) (c) = 5000(P/F, 10.38%, 20) + 100(P /A, 10.38%, 20) + 50(P/G, 10.38%, 20)(P/F, 10.38%, 1) (d) = 5000(F/P, 10.38%, 80) + 100(F/A, 2.5%, 80) + 50(P/G, 2.5%, 80) (F/P, 2.5%, 80).
Suppose $10,000 is deposited into an account that earns 10% per year for 5 years. At that point in time, uniform end-of-year withdrawals are made such that the account is emptied after the 15 th withdrawal. The size of these annual withdrawals is closest to what value? (a) $2118 (b) $2621 (c) $3410 (d) $16,105