Answered: Calculate the future worth of 20 annual…

Calculate the future worth of 20 annual $4,000 deposits in a savings account that earns 8% compounded quarterly. (Draw the Cashflow)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 9RE

See similar textbooks

Related questions

Q: Funds are deposited in a savings account at an interest rate of 8% per annum. What is the initial…

A: Annual interest rate = 8% Future value = P 10,000 Period = 10 Years

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: 1. An investor deposits P10,000.00 at the end of each year in an account which gives a nominal…

A: Annual deposit (A) = P 10000 Accumulated value = X n = 10 years r = 5% continuously compounded

Q: The cash flows shown in the table below occur every six months (bi-annually) and have a total…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…

A: Given, Amount (A) = P8,000 Principal (P) = ? Interest rate (i) = 12% Number of times compounded (n)…

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Simple Annuity due refers to the payment system where amount paid or received in eac period is not…

Q: What amount of money invested today at 15 % interest can provide the following scholoarships: Php…

A: Given, R= 15% A1= PHP 30,000 N1= 6 A2= PHP 40,000 N2= 6 A3= PHP 50,000

Q: What lump sum of money must be deposited into a bank account at the present time so that $500…

A: Monthly withdrawals six years from now is $500 Time period of withdrawal is 5 years interest rate…

Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

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

Q: investment

A: Introduction: The effective annual interest rate can be defined as a real return which is earned on…

Q: What is the future value of a stream of $800 cash receipts, each to be received at the beginning of…

A: Annual cash receipts (C) = $ 800 Number of annual cash receipts (n) = 4 Annual interest rate (r) =…

Q: You are making $5,000 monthly deposits into a fund that pays interest at rate of 6% compounded…

A: We need to use the concept of time value of money (TVM) to solve the question. According to TVM, the…

Q: How much must you deposit each year to have P30,000 at the end of 12years with money worth 8%. Show…

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

Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…

A: Individuals deposit a sum of money into savings accounts in order to earn interest and accumulate a…

Q: The present value of a savings account that will earn 3 percent annual interest and be worth $2,000…

A: Given: Rate of interest = 3% Future value is $2,000 Formula to calculate present value: Where,PV is…

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a…

A: Cash Flow Diagram: Income and expenses over some time interval are visually represented in cash flow…

Q: What deposit made at the beginning of each month will accumulate to P120,000 at 8% compounded…

A: Future Value = P 120,000 Interest Rate = 8% compounded semi-annually Time Period = 10 Years

Q: What deposit made at the beginning of each month will accumulate to P120,000 at 8% compounded…

A: Let the monthly deposit = M Accumulated value = P 120000 Interest rate = 8% semiannually compounded…

Q: Starting at the end of this year, you plan to make annual deposits of $7,000 for the next 10 years…

A: MS-Excel --> Formulas --> Financials --> FV

Q: suppose that $575.75 is invested in a savings account with an APR of 12% compounded monthly. What is…

A: Future value is the worth of the current amount in some future specified date at given interest…

Q: Calculate the future sum of $1,200, given that it will be held in the bank for 5 years and earn 14%…

A: Below details are given in the question : Present value = $1200 Time period = 5 years Interest rate…

Q: A Student loan totals $30,000 at graduation. The nominal interest rate is 12% compounded monthly,…

A: Total payments= 32 Total amount of loan (L)= 30000 Rate of interest (r) = 12%/12 = 1.0% per month…

Q: Find the amount the bank will produce if $2100 is invested for 5 years, compounded daily at 6.48%

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

Q: 5000 dollars is invested in a bank account at an interest rate of 10 per cent per year, compounded…

A: Companies are usually compute the present value and future value for the purpose of estimating the…

Q: If 6000 dollars is invested in a bank account at an interest rate of 8 per cent per Find the amount…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: use the appropriate formula to find the future value (in $) of $500 dollars deposited at the…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: annual cash flow f

A: Annual cash flows refer to the income of the company before deducting any interest, taxes,…

Q: With cash flow diagram. What lump sum of money must be deposited into a bank account at present time…

A: Semi annual withdrawal = $ 1500 Number of withdrawals = 10*2 = 20 Annual interest rate = 12%…

Q: 9th deposit is m

A: Given Information: Amount Deposited each year is P10,000 Time period is 9 years Interest rate is 14…

Q: Consider a savings account with end-of-year transactions indicated by the following cash flow…

A: Given: Interest rate = 8% Years = 12

Q: If you invest $900 in a bank in which it will earn 8 percent compounded quarterly, how much will it…

A: PV = $ 900; r = 8% compounded quarterly; m = frequency of compounding = 4 (as there are four…

Q: If you deposit $3,500 into an account earning an annual rate of 11% what would your account be worth…

A: To calculate the value of account after 35 years we will use the below formula Value after 35…

Q: cashflow diagram.

A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…

Q: Draw a cash flow diagram

A: Cash flows in different periods are not comparable; therefore, we use the concept of time value of…

Q: Calculate the initial amount that would be in a savings account at the beginning of 6 years, given a…

A: Given Interest rate = 3.14% Number of years = 6 Years Final amount received = 256 Future value is…

Q: you make 11 semi annual deposits of 550 pesos into a savings account the interest rate is 4.72%…

A: Interest rate=4.72% compounded quarterly Interest rate per quarter=4.72%4=1.18% Interest rate per…

Q: At what rate must funds be continuously added to a savings account in order to accumulate $13,000 in…

A: Amount to accumulate = $13,000 Time period = 5 years Interest rate = 6%

Q: Find the amount at the end of two years and seven months if 6,000.00 is invested at 9% compounded…

A: Investment = 6000 Interest Rate = 9% Compounded Quarterly Number of compounding periods = 4

Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: After 6 years from today, what will be the purchasing power of the money in your bank account,…

A: Present Value of Investment Adjusted Rate of Return with regards to Inflation rate

Q: What amount must be invested now in savings account earning 9% compounded quarterly to accumulate a…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from…

A: Present Value- The present value of an investment or amount is its value today. It is the current…

Q: Suppose you make equal quarterly deposits of $2,500 into a fund that pays interest at a rate of 5%…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Determine the monthly savings is needed monthly to save $200,000 at the end of ten years if the…

A: Future value (FV) = $ 200,000 Interest rate = 10% Number of compounding per year (m) = 4 Monthly…

Q: What would be the value of a savings account started with $1,200, earning 3 percent (compounded…

A: We need to calculate the value of the account after 10 years by using future value of a single…

Q: You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded…

A: Loan (L) = $10000 Interest rate = 12% compounded semiannually Duration = 3 years = 36 months We need…

Question

Calculate the future worth of 20 annual $4,000 deposits in a savings account that earns 8%
compounded quarterly. (Draw the Cashflow)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
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
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.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
(Please draw cashflow diagram) If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly.
If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly. please show the cash flow diagram
What is the present value of a $120,000 cash flow to be received at the beginning of each of the next 20 years from an account that earns an annual rate of 9%?
You expect to receive two cash flows: $34,000 paid in 5 years and $51,000 paid in 10 years. You'll out the money into a savings account with an annual interest rate of 7%. What is the future value of the combined cash flows, in 15 years?
Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now). Please draw a cash flow diagram. Thank you
What deposit made at the beginning of each month will accumulate to P120,000 at 8% compounded semi-annually at the end of 10 years?Show complete solution, and the cash flow diagram.
What is the present value of a $400,000 cash flow to be received at the end of each of the next 10 years from an account that earns an annual rate of 9%?