A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The insterest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdarwal amount at the end of the 16th year?

A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The insterest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdarwal amount at the end of the 16th year?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 14E

See similar textbooks

Related questions

Q: In 9 years, Rollo Company will have to repay a $100,000 loan. Assume a 6% interest rate compounded…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: The sum of P1000.00 is invested now and left for 8years, at which time, the principal is withdrawn.…

A: The future value of an amount invested in an account depends on the interest rate and the time…

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: Present value = Future value / ( 1 + Periodic interest rate )Number of periods

Q: Using 12 percent simple interest per year, how much interest will be owed on aloan of $500 at the…

A: Interest Rate(R) = 12 Loan Amount(P)=$500 Years(T) = 2

Q: A person lends ₱2,000 for five years at 10% per annum simple interest; then the entire proceeds are…

A: Simple and Compound are two different ways by which interest cost on loan and return on investments…

Q: What is the present worth of P500 deposited at the end of every month for 6 years if the interest…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: At what nominal rate compounded quarterly will payments of P 800 at the beginning of each 3 months…

A: Here, Quarterly Payment is P800 Time Period is 5 years Annuity Type is Annuity Due Borrowed Amount…

Q: Suppose that $80,000 is invested at 7% interest. Find the amount money in the account after 5 years…

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

Q: A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: What will be the balance at the end of the tenth year on a monthly payment $130,000 loan with a…

A: Given: Loan : $130000 Amortization Year = 30 Years Annual rate = 5.75% Number of years payment made…

Q: a) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 is…

A: Investment at time 0 15000 investment at the end of 4 years 15000 Rate of Interest for 10 years…

Q: A sum of GH¢100 is to be paid at the end of each year for 20 years. The effective compound interest…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: What is the present worth of P500 deposited at the end of three months for 6 years interest rate is…

A: The Present value of a future deposit is the present worth of that amount. The future amount can be…

Q: What is the discounted value of $3500.00 paid at the end of every six months for 5 years if interest…

A: Here, Equal amount at equal interval = $3,500 Payment at the end of every six months No. of years =…

Q: A sum of P1,000 is invested now and left for eight years at which time the principal is withdrawn.…

A: We will use the concept of time value of money here. The concept says that money earns interest and…

Q: A house and lot costing ₱2 million was bought at a down payment of ₱500,000 and ₱1 million after one…

A: Compounding Interest refers to the calculation of interest on the principal amount plus the…

Q: A sum of P10,000 was invested now and left for 6 years, at which this time the principal is…

A: Invested amount (P) = P 10,000 Interest rate (R) = 15.8% Period till first withdrawal (N1) = 6 Years…

Q: A sum of money invested now at 10 percent compounded semi-annually is to provide payments of $1500…

A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…

Q: Commercial bank pays 12% interest and compounds quarterly. If 1000 are initially, how much shall it…

A: Computation:

Q: If a sum of $3000 is borrowed for six months at 9 percent simple interest per year, what is the…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…

A: a) P = 4,500 + 4,500 = 9,000 r= 6% t= 5 n= 12 Future value = P1+rnnt= 9,0001+0.061260=…

Q: What is the present worth of P5000 deposited at the end of every three months for 5 years if the…

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

Q: How many years are required for P 1,000 to increase to P 2,000 if invested at 9% per year compounded…

A: Future value is obtained by compounding the present value using the appropriate rate of interest.

Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…

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

Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…

A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…

Q: 1. A sum of P1,000 is invested now and left for eight years, at which time the principal is…

A: Given, The initially invested amount = P 1,000 Rate of interest = 5% Time period of initial…

Q: A sum of P1,000.00 is invested now and left for eight years, at which time the principal is…

A: The amount of withdrawal at the end of the 16th year will include the interest plus the…

Q: What is the discounted value of $844 paid at the end of every three months for 10 years if…

A: Computation:

Q: A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn.…

A: Invested amount or principal amount is P1,000 Effective Annual interest rate is 5% Principal is…

Q: An investment of P50,000 is made at the beginning of each month for 5 years. How much will the…

A: The investment value can be calculated as future value of annuity due

Q: A sum of P1,000 is invested now and left for 8 years, at which time the principal is withdrawn. The…

Q: A loan is to be repaid quarterly for 5 years that will start at the end of 2 years. If interest rate…

A: The Loan amount will be equal to the present value of payments today. Effective quarterly interest…

Q: If 36,400 dollars is invested at an interest rate of 7 percent per year, find the value of the…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: 4. An amount of P3,000 is invested now and left for the 5 years at which time the principal is…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: Consider a floor that has a principal amount of $10 million. The tenor is 3 months, the life of the…

A: The London Interbank Offer Rate, as well as LIBOR, seems to be the interbank market's reference…

Q: If $6000 is invested in an account that pays 3% annual compounded interest, compare the amount in…

A: 1. Semi annual: Future value = Present value *(1+rate)^periods Future value =…

Q: What is the value today of $500 received at the beginning of each period of six months for 12 years…

A: The following formula will be used to calculate today value as follow:

Q: Calculate if $10,000 is invested at interest rate of 12% per annum, what is the amount after 3 years…

A: The provided information are: Present value (PV) = $10,000 Interest rate (r) = 12% = 0.12 Number of…

Q: An amount, P, must be invested now to allow withdrawals of $1,000 per year for the next 15 years and…

A: Annuity means no. of payment which are made at equal interval and equal in size. Person gets…

Q: If 2,000 is invested at an interest rate at 8% compounded annually for 3 years, find the compound…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: was invested now and left for 6 years, at which this time the principal is withdrawn. The interest…

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

Q: A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months.…

A: To solve this problem we will have to find the periodic quarterly payment and then make a loan…

Q: $1,000 is invested for 5 years in an account earning 8% annual interest, compounded semiannually.…

A: Details given are : Present value of investment = $1000 Interest rate = 8% p.a. Time period = 5…

Q: The annual amount of a series of payments to be made at the end of the next twelve years is P500.…

A: Answered:

Q: What sum must be invested now to provide an amount of OMR 18,000 at the end of 15 years if interest…

A: Present Value is the current value of the future stream of cash flows or sum of money at a specified…

Q: What is the equal payment series for 8 years that is equivalent to a payment series of $15,000 at…

A: Given information: Payment series: $15,000 Increasing amount: $1,500 Period: 10 years Interest…

Q: at is the present worth and future of P6000 deposited at the end of every month for 4 years if the…

A: The more is compounding more is future value and less is the present value of money due to the fact…

Question

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

Similar questions

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
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.
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