An elite private college receives large donations from successful alumni. The account that holds these donations has $955,000,000 currently. Fill in the blanks in the statements below. Remember to use commas and decimals when writing monetary values. 1. The account would earn $ 2. The account would earn $ to the nearest cent.) 3. If the account is compounded daily, it earns $ interest. in one year of simple interest at a rate of 5.33%. in one year at 5.33% is the interest was compounded daily. (Round more in interest when compared to simple 4. The interest earned is used to pay full scholarships of $61,000 per student. If the interest was compounded daily rather than using simple interest, then it would pay for more student scholarships.

An elite private college receives large donations from successful alumni. The account that holds these donations has $955,000,000 currently. Fill in the blanks in the statements below. Remember to use commas and decimals when writing monetary values. 1. The account would earn $ 2. The account would earn $ to the nearest cent.) 3. If the account is compounded daily, it earns $ interest. in one year of simple interest at a rate of 5.33%. in one year at 5.33% is the interest was compounded daily. (Round more in interest when compared to simple 4. The interest earned is used to pay full scholarships of $61,000 per student. If the interest was compounded daily rather than using simple interest, then it would pay for more student scholarships.

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 23E

See similar textbooks

Similar questions

Wendy has $23,000.00 invested in a bank that pays 14.25% annually. How long will it take for her funds to triple?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices
Your local bank pays 4% interest annually. You have $5,000 invested in the bank. How long will it take for your funds to double? Please show your work in excel.
Wendy has $23,000.00 invested in a bank that pays 9.75% annually. How long will it take for her funds to triple?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.
USE EXCEL TO SOLVE THIS PROBLEM AND SHOW THE FORMULA! Jake Mai deposited ¥300,000 in a bank account earning 9 percent per annum. How much interest will he earn in the fourth year? How much of the total will be simple interest and how much will be the result of compound interest?
Wells Fargo Bank lent a newly graduated engineer $1,000 at i = 5 % per year for 4 years to buy home office equipment. From the bank's perspective (the lender), the investment in this young engineer is expected to produce an equivalent net cash flow of $ 282.01 for each of 4 years.This represents a 5 % per year rate of return on the bank's unrecovered balance. Compute the amount of the unrecovered investment for each of the 4 years using the rate of return, ROR, on: a. the unrecovered balance (the correct basis)
A charitable foundation wants to help schools buy tablet computers. The foundation plans to donate $32,000 each year to one school beginning one year from now, and the foundation has at most $500,000 to start the fund. The foundation wants the donation to be given out indefinitely. Assuming an annual interest rate of 7% compounded continuously, does the foundation have enough money to start the school fund? (Round your answer to two decimal places.) The amount the foundation needs to fund the donation is $ . , the foundation enough money to start the fund.
Edmonds Community College's (EDCC) scholarship fund received a gift of $325,000. The money is invested in stocks, bonds, and CDs. CDs pay 2.5% interest, bonds pay 2.9% interest, and stocks pay 7.8% simple interest. To spread the risk the College has a policy of having 4 times as much money in CDs as in stocks and bonds combined. If the annual income from the investments is $9,365 , how much was invested in each vehicle? solve by the method of your choice either using reduced row echelon form or the matrix equation EDCC invested $ in stocks ___________________ $ in bonds ___________________ $ in CDs ___________________
On January 1, 2005, a person’s savings account was worth $200,000. Every month thereafter, this person makes a cash contribution of $676 to the account. If the fund is expected to be worth $400,000 on January 1, 2010, what annual rate of interest is being earned on this fund?
Wendy has $8,000.00 invested in a bank that pays 13.75% annually. How long will it take for her funds to triple?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. 8.53 years B. 6.48 years C. 8.36 years D. 7.50 years E. 10.66 years
You have just been employed as an investment analyst in an investment bank. You took over fromsomeone who left with a number of issues that need answers. The issues are itemized below:a) A client just deposited ¢7,000,000 in one of your investment funds which is currently earning10% return. The bank has advised the client to deposit an additional ¢4,000,000 at the end ofeach of the next three years. The client would like to know how much the total amount in thisinvestment will be in three years’ time.b) A client has been offered an investment product which requires that he pays ¢200,000 in oneyear, ¢400,000 the next year, ¢600,000 the year after, and ¢800,000 at the end of the followingyear. The client could have earned 12% on similar investments being offered on the marketbut has decided to take your firm’s offer. How much is this investment worth today assumingthe client proceeds to invest?c) Kassim has just been offered a job at ¢600,000 a year. He anticipates his salary will…
A corporation decides to deposit a fixed payment per quarter into an account earning 9% interest per year, compounded quarterly, in order to create a sinking fund so they will have $125,000 to replace some machinery in 5 years. How much interest does the account earn in the first quarter of year 3? (Enter an answer correct to the nearest cent.).
The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in riskfree securities to stabilize income. The various revenueproducing investments together with annual rates of return are as follows: Type of Loan/Investment Annual Rate of Return (%) Automobile loans 8 Furniture loans 10 Other secured loans 11 Signature loans 12 Riskfree securities 9 The credit union will have $2,000,000 available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments.•Riskfree securities may not exceed 30% of the total funds available for investment.•Signature loans may…