A woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly. The size of the bonus increases by 10.5% each year, and the initial bonus amount was $3,000. Seven deposits were made. Determine how much will be the amount 10 years after her last deposit.

Q: A father wants to set up a bank account that will pay his daughter $18,000 at the end-of-quarter…

A: It is assumed that the interest rate per quarter is 2%.

Q: Nicole won a prize that will provide her with "end of the year" cash flows over the next 8 years.…

A: Presents value represents the todays worth of the monetary reward in the market.

Q: You have just received a bonus of $10,000 and are looking to deposit the money in a bank account for…

A: Value after a period can be calculated as: = Principal * (1 + Periodic Interest rate)^number of…

Q: You receive $100 today, $200 in one year, and $300 in two years. If you deposit these cash flows…

A: Formula FV = CF0*(1+R)3+CF1*(1+R)2+CF2*(1+R)1 Where FV - Value of account after 3 years R - Interest…

Q: Suppose someone wants to accumulate $40,000 for a college fund over the next 15 years. Determine…

A: Given, The required amount is $40000. Term is 15 years

Q: woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly. The…

A: This is in the form of a growing annuity.

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. A…

A: In this we have to calculate present value of ANNUITY FACTOR and from that we can get the six…

Q: A woman went to the Beneficial Loan Company and borrowed ST0,000. She must pay $323.53 At the end of…

A: Monthly interest rate can be calculated by excel formula PMT and by IRR formula with series of cash…

Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…

A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…

Q: A friend tells you she has saved for 10 years and has a present sum of $20,000, which earned at the…

A: We will use the concepts and formulas of time value of money to find the solution.

Q: Yani has $12,000 for investment purposes. His bank has offered the following three choices. 1. A…

A: The internal rate of return is a capital budgeting technique for evaluating the profitability of…

Q: Solve the following problems. You must show all your solutions -Draw the cash flow diagram for each…

A: The Present Value of perpetuity: A constant cash flow that occurs periodically forever is known as…

Q: Mr. Santos will deposit P10, 000 at the ABC bank at the end of each quarter for 2 years. If the bank…

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

Q: You just purchased a concrete mixing machine and wish to set aside enough money in a bank account to…

A: Cash flow diagram: It is a diagrammatical representation of the income & expenses of an…

Q: Homework/ An electrical engineer wants to deposit an amount P now such that she can withdraw an…

A: Investment is way to spend your money to get the required return out of it in a certain period of…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. An…

A: First, we need to convert the interest rate compounding frequency from continuous to annual because…

Q: JOTARO started saving $2,000 each year for 25 years until his retirement at 65 years old. A year…

A: Sometimes, some cash inflows or cash outflows are unknown in the savings or withdrawal schedule. The…

Q: one wants to know the amount of money she will be receiving after 6 months pinion if she will be…

A: The future value of money includes the amount deposited and interest being accumulated over the…

Q: 1. Mrs. Renata converted the payment of her P50,000 debt to five (5) equal payments at the end of…

A: Loan is an agreement between two persons as lender (who gives money) and borrower (who takes money)…

Q: (Please include a cash flow diagram) A teacher is interested to open investments account at an…

A: PV is the current worth of cash flows that are expected to happen in the future.

Q: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual…

A: In this we have to calculate present value of all to get initial deposit.

Q: wishes to accumulate P2,500 over a period of 15 yrs so that a cash payment can be made for a new…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

Q: A man purchases a lot worth 1,000,000 if paid in cash. On installment basis, he paid P200,000 down…

A: Purchase price = 1,000,000 Down payment = 200,000 Payment at the end of year 1 = 300,000 Payment at…

Q: The following cash flow diagram indicates the monthly payments you will have in the future. Assume…

A: Interest Rate = 12%/12 = 1% per month Payments: Month Payment 18 2000 19 2400…

Q: Suppose that $10,000 is deposited into a saving account that earns 6% interest, compounded annually.…

A: Present Value of deposit (PV)=$10,000 Rate of interest (i)=0.06   Future Value after 5 years=…

Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…

A: Deposit = $4,000 Withdrawal after 2 years = $2,000 Remaining Withdrawal = 4 years   Interest Rate =…

Q: Draw cash flow diagram and show your solution An individual makes six annual deposits in a savings…

A: Cash flow and profit are two crucial financial variables in business, and it's not uncommon for…

Q: Read and analyze each given scenario and provide what is asked. Show your complete solutions. 1. It…

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

Q: JOTARO started saving $2,000 each year for 25 years until his retirement at 65 years o retired, he…

A: Future value FACTOR =(1+r)n-1/r Future value FACTOR =(1.09)25-1/0.09 Future value FACTOR =84.70…

Q: An electrical engineer wants to deposit an amount P now such that she can withdraw an equal annual…

A: A1 = 2000 per year N = Time Period = 5 years End of year deposits A2 = 3000 per year Time Period = 3…

Q: Jose borrows P5000 from a lending company for 5 years at 15%. At the end of the 5ft year, he renews…

A: Given: Loan amount = P5000 Time period = 5 years  Interest rate = 15%  Renewal loan amount = P10,000…

Q: Mark deposits $50,000 now into an account which will eam interest at a rate of 7% per year, how much…

A: Future Value and present value of annuity concepts is used to determine withdrawal amount.

Q: Suppose you'd like to save enough money to pay cash for your next car. The goal is to save an extra…

A: The quarterly amount will be found using excel’s pmt function. It is the minimum amount that must be…

Q: Jim Hayes wants to buy some electronic equipment for $800. Jim has decided to save uniformamount at…

A: Electric Equipment cost = $800 Months(n) =12 Interest Rate(r) =0.50% Let Monthly Payment is P

Q: A woman is considering giving an endowment to a university in order to provide payments of P5000 and…

A: The movement of money into and out of a business is referred to as cash flow. The cash flow…

Q: A teacher is interested to open investments account at an interest rate of 12% compounded…

A: Perpetual annuity is one of type of annuity which lasts forever. The sequence of cashflows will…

Q: Your mother plans to join the employee's cooperative. She wants to know how much her money would…

A: The interest on the money invested is earned for period it is invested in the scheme. The interest…

Q: If you want to withdraw $20,000 at the end of two years and $55,000 at the end of four years, how…

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: Suppose that you have an opportunity to invest in a fund that pays 12% interest compounded annually.…

A: The investment is refer as engaging funds with an financial institution or bank at specific rate of…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. A person…

A: In this we need to calculate six monthly interest rate and find out the semi annual payment.

Q: !

A: Compound Interest Compound interest refers to the interest that includes interest on principal as…

Q: Dr. Anderson plans to make a series of gradient-type withdrawals from her savings account over a…

A: Withdrawals start at end of year 2 Interest Rate = 9% First Withdrawal = 50,000 Annual Increase =…

Q: Suppose you deposit $3600 to open an account that earns 6% interest compounded monthly. You are…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: A chemical engineer wants to deposit an amount now such that she can withdraw an equal annual amount…

A: Cash flow diagram:

Q: Suppose you decide to save P3,000 per month for the next three years.  If you invest all of these…

A: Here, Equal amount at equal interval (A) = P3,000 per month Time period in years (n)= 3 years Rate…

Q: Mr. Holzman estimates that the maintenance cost of a new car will be 3,750 the first year, and will…

A: Maintenance cost in year 1 (M1) = 3750 M2 = 6250 M3 = 8750 M4= 11250 M5 = 13750 M6 = 16250 r = 5.5%…

Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…

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

Q: A man was offered a Land Bank Certificate with a face value of P100,000 which bears interest of 8%…

A: Face value of certificate = P 100,000 Interest rate = 8% Semi annual interest payment =…