An individual makes five annual deposits of $2,000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit, the accumulated money is withdrawn from the account. How much is withdrawn?

Q: A company deposits $10,000 in a bank at the beginning of each year for 20 years. The account earns…

A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…

Q: Suppose an individual makes an initial investment of $2500 in an account that earns 7.8%. compounded…

A: Given information: Initial investment is $2,500 Interest rate is 7.8% Number of periods is 12 made…

Q: A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500…

A: Here, First Deposit is $10,000 Constant Decrease in payment is $500 Interest Rate is 15% Last…

Q: A man borrowed $1000 from a bank at 8% interest. He agreed to repay the loan in two end-of-year…

A: Given information: Amount borrowed is $1,000 Bank interest rate is 8% Loan paid in two end of the…

Q: Dylan deposits $10,000 now and makes an additional deposit of $5,000 at the end of Year 3 in the…

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

Q: An investor deposits 10,000 into a savings account that sets its interest rate for the year on the…

A: The account balance at end of time can be calculated with the help of future value function

Q: Jason makes six EOY deposits of $2,000 each in a savings account paying 5% compounded annually. If…

A: The compound interest is calculated on the principal amount annually. It considers the present value…

Q: You deposit $2,500 at the end of the year (k = 0) into an account that pays interest at a rate of 7%…

A: Saving Account is a deposit facility offered by commercial banks to their customers which gives them…

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: A man borrowed 200,000 from his friend and agreed to pay after 6 years at an interest rate of 10%…

A: Given: Amount Borrowed: 200,000 Loan tenure in years: 6 Loan Interest Rate: 10% Annual Deposit…

Q: An individual makes 6 annual deposits of P2,000 in a savings account that pays interest rate of 4%…

A: Annual deposit = P 2000 Number of annual deposit = 6 Interest rate for first 8 years = 4% Interest…

Q: Deposits are made at the end of years 1 through 7 into an account paying 6% per year interest. The…

A: Future value  is the worth of any asset or any sum of money at a future date when such asset or…

Q: You deposit $7,000 into an account earning interest at a 7% APR.  You keep the money in the account…

A: Initial deposit = $7,000 Interest rate = 0.07 or 7% Period = 5 years Money in account at the end of…

Q: Suppose an individual makes an initial investment of $2800 in an account that earns 7.8%. compounded…

A: Given information: Initial investment is $2,800 Interest rate is 7.8% Number of periods is 12 made…

Q: Mark Welsch deposits $7,200 in an account that earns interest at an annual rate of 8%, compounded…

A:

Q: A man deposits $11,000 at the beginning of each year for 10 years in an account paying 5% compounded…

A: The process of compounding involves addition of additional interest into the amount that is already…

Q: You decide to deposit $103 monthly in a 2.98% annual interest bearing account over the next 8 years.…

A: Gross amount placed in the account is simply the sum of all the payments made in the account.

Q: You place £1,000 on deposit at an annual interest rate of 10% and make regular contributions of £250…

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

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: A man deposits ​$14,000 at the beginning of each year for 14years in an account paying 77​%…

A: The question is based on the concept of future value of annuity payment due. Future value of an…

Q: Suppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest…

A: future value can be calculated from present value using interest rate and given period of savings in…

Q: If the interest is deposited into a non interest bearing account B, what is the balance in account B…

A: The first investment is effectively a payout annuity where the interest amount is withdrawn each…

Q: $600.00 was invested in a bank for 5 years. When the deposit was made, the bank was paying the 14%…

A: Invested amount (P) = $ 600 Interest rate for first 3.5 years = 14% Quarterly interest rate (r) =…

Q: Irene makes five annual deposits of $3,000 in a savings account that pays interest at a rate of 4%…

A: Annual deposits = 3000 Interest Rate during first 7 years = 4% compounded quarterly

Q: John and Susan just opened savings accounts at two different banks. Each deposited $1,000. John's…

A: Given information: Deposit amount $1,000 John bank pays 10% annual rate Susan bank pays 9.5% annual…

Q: What is the value of the account at the end of 9 years?

A: Depositing equal amounts at the end of the period for a fixed time period is in the form of an…

Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: A retiree invests $8,000 in a savings plan that pays 6% per year. What will the account balance be…

A: The future value of money is considered as the sum of money received after a period of time at a…

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 2% interest…

A: Future value (FV) refers to a means of estimating how much an asset or cash's present value (PV)…

Q: Suppose you deposit $1,000 today in an account that pays 5% interest at the end of each year. If…

A: Here, Deposit Amount is $1,000 Interest Rate is 5%

Q: If you deposit $13,.224 annually at the end of every year in a bank account paying 8% annually. how…

A: Annual deposit (D) = $13,224 Period (n) = 5 Years Interest rate (i) = 8% (or 0.08) Amount saved at…

Q: An individual makes six annual deposits in a savings account starting one year from now that pays…

A: Number of annual deposits (n) = 6 Interest rate up to 6 years (r) = 10% Interest rate after 6 years…

Q: Moxie Fox deposited $30,000 in a savings account at 6% interest compounded semiannually. At the…

A: As period goes on compounding interest increases with more compounding during the period.

Q: How much money should be deposited annually in a bank account for five years if you wish to withdraw…

A: We required for calculating an amount for 5 years from this time. Then, we need to determine the…

Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…

A: Deposits= $100 Interest= 3.25% per year Period= 7 years

Q: A person deposits $2750 in an account that yields 3.5% interest compounded annually. Set up a…

A: Deposit amount (D) = $2750 Annual yield (r) = 3.5%

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: 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: The Martin family recently deposited $1,000 in a bank account that pays a 6 percent nominal interest…

A: Deposit amount (P) = $ 1000 Interest rate = 6% Monthly interest rate (r) = 6%/365 =…

Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…

A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…

Q: A man makes a payment of 1450 at the beginning of every month on a bank that offers 6% interest. How…

A: To calculate the amount of loan we will use present value of annuity due formula that is as follows:…

Q: how much would you have saved at the end of six years?  Round your answer to the nearest one dollar.

A: Future Value of Annuity = P x [{(1 + r)^n} - 1] / r Here, P = Periodic Deposit i.e. $46904 annually…

Q: RM100 is deposited every month in an account that pays 12% compounded monthly for two years. After…

A: Answer -    Given,  R = 100  r = 12% t1 = 2 i = 12%/ 2 =1% n1= 12(2) = 24 n2 = 12(3) = 36

Q: Under your six-year savings plan, you deposit P1,000 now and P1,000 at the end of the fourth year,…

A: Future value is a value of an investment or asset on a specific date in the future. Compound…