Charlotte wishes to accumulate $100,000 in a savings account in 10 years. If she wishes to make a single deposit today and the bank pays 4% compounded annually on deposits of this size, how much should Charlotte deposit in the account?

Q: Engr. Chloe deposits P10,000 in a savings account on the day her child is born. She deposits an…

A: Computation of the amount in the account the day after the 21 birthday:F=P(ern)+Aern-1er-1Here,…

Q: Helen can earn 3% interest in her savings account. Her daughter Roberta is 11 years old today.…

A: The future value of deposit is the value of the current deposits on a future date based on the…

Q: On the birth of a child, the father wants to deposit a sum in a savings account. He intends to…

A: Sum Deposit = ? 20,000 every month for 4 years starting on 18th birthday Interest Rate = 10%…

Q: How much should Elizabeth have in a savings account that is earning 4.50% compounded quarterly, if…

A: Given: Particulars Amount Amount(PMT) $1,550 Years 10 Interest rate 4.50%

Q: Betty wants to save $500,000 in four years. She wants to make monthly deposits into an account which…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Priscilla deposits $200 at the end of each month for seven years into savings account earning 5%…

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

Q: Suppose Emma had deposited another $500 into a savings account at a second bank at the same time.…

A: Formula: Future value = Present value of bank balance x ( 1 + Interest rate ) compounding periods.

Q: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…

A: Given: Future value FV = $150000 Payment at the beginning of each month "PMT" = $1000 Interest rate…

Q: James and Kate would like to have $30,000 in 6 years in order to purchase anew mini van. What amount…

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

Q: Julie deposits $600 at the end of each month into her savings account. If the amount earns 5.25%…

A: In finance, the term annuity depicts a sequence of cash flows over a specific time duration. Each…

Q: Laura wants to accumulate $150,000 in her bank account by depositing $1000 at the beginning of each…

A: Annuity: Annuity helps the investors to receive regular disbursements, for that the investors are…

Q: Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with…

A: Time value of money is the concept that says the monthly savings will increase portfolio value at…

Q: Suppose that Jacob would like to invest at the end of each month for the next 15 years into an…

A: Ordinary Annuity refers to series of equalized payments that are made at end of period for certain…

Q: If Bob and Judy combine their savings of $1,000 and $800​,respectively, and deposit this amount into…

A:

Q: Whitney deposited $200,000 into a savings account that has an annual interest rate of 8% compunded…

A: Interest is an extra amount which is received or paid on deposited or borrowed amount for the…

Q: Eric invested his savings in a bank at 3.75% compounded monthly. How much money did he invest to…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Marwan just deposited $13,000 into his account at Bank Muscat. The bank will pay 2.3 percent…

A: Deposit amount (P) = $ 13000 Annual interest rate (R) = 2.3% Period (N) = 15 Years

Q: In 20 years, Hannah would like to have $30,000 in an account that earns 4.2% compounded monthly. How…

A: In the given question we need to compute the Deposit today so that Hannah will have $30000 at the…

Q: Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an…

A: Computation:

Q: Jason makes six end-of-year deposits of $2,000 each in a savings account paying 5% compounded…

A: Annual deposits = $2,000 Rate = 5%   First calculate the future value of annuity at the and of 6…

Q: Can you please help me work this problem out in detail?   Carol is depositing $250 into an account…

A: The amount deposited every six months is $250. The total number of deposits in 5 years would be 10.…

Q: Metehan Atay invests 550 pounds per week in the bank for an investment that will earn him 20% per…

A: An annuity is a sequence of periodic cash flows with a fixed amount at equal time intervals over a…

Q: Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at…

A: The future value of annuity would be considered the value accumulated in future with a view to…

Q: In 7 years Harry and Sally would like to have $20,000 for a down payment on a house. How much should…

A: A down payment seems to be a monetary payment made at the start of a purchase deal. It is frequently…

Q: Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How…

A: Let's begin by calculating Effective Interest rate Formual for Effective Interest Rate = (1  +…

Q: New parents wish to save for their newborn's education and wish to have $47,000 at the end of 19…

A: Given: Future value = $47,000 Years = 19 Interest rate = 4.3%

Q: Elizabeth Brown has $23,000 that she can deposit into a savings account for five years. Bank A…

A: Here, we need to calculate the future value of the amount deposited today at a given interest rate…

Q: Benjamin wants to have $12,000 in 15 years after investing in an account that earns 4.2% compounded…

A: Future  Value or Amount that Benjamin wants is $12,000 Time period is 15 years Interest rate is 4.2%…

Q: Suzana would like to accumulate RM5,000 in 3 years in a saving account which pays 6% annual interest…

A: A.  Monthly deposit at the end of the month P= PMT * ((1+r)^n-1)/r P= future value of annuity PMT=…

Q: Janie deposits $10,000 in the bank today. Starting 3 years from now, she makes equal withdrawals of…

A: The amount at the end of 10 years will depend upon the future values of the deposits and the…

Q: To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 4.8%…

A: Rate of Interest = 4.8% Compounded Monthly Time Period(t) = 18 years  n = 12 Future Value = $97,000…

Q: a.) What is the monthly rate? b.) How many total deposits?

A: Information Provided: Amount = $750,000 Term = 4 years Interest rate = 15% compounded monthly

Q: Harry plans to deposit $3,000 at the beginning of each year into a savings account earning 2.75%…

A: The amount which is deposited at the beginning of each period is called as annuity due. The period…

Q: A mother wishes to have Php800,000 eight years from today for her son’s graduation. How much should…

A: Future value (FV) = Php800,000 Monthly interest rate (r) = 0.0116666666666667 (i.e. 0.14 / 12)…

Q: Tess wanted to have P100,000 on her bank account at the end of 8years. She plans to deposit an…

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

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: Mr & Mrs. John have decided to start a monthly savings program in order to provide for their son's…

A: Accumulated amount (F) = RM 50,000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 =…

Q: Aunt Tillie has deposited $33,000 today in an account which will earn 10 percent annually. She plans…

A: We need to calculate future value of investment by using this formula FV = PV(1+i)n where FV =Future…

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: a) Liliana makes the following deposits into her savings account. $7,400 in 2 years, $4,800 in 3…

A: " Hi, Thanks for the Question. Since you posted multiple question, we will answer the first question…

Q: Tanya deposits ₱1,500 at the end of each quarter in her savings account. If the account earns 6.75%…

A: The amount deposited in the savings account grows on the basis of interest rate and the duration of…

Q: Ayesha wants to deposit 300 per year in a bank for the next 10 years. The bank pays annual interest…

A: Future value refers to the worth of the amount which is invested today at some future specified date…

Q: Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The…

A: Information Provided: Return for the first 11 years = 1.40%Return for the next 16 years = 6.90%…

Q: How much Alex must deposit annually if he wants to have $800,000 in 25 years by making equal annual…

A: Annual payments refers to the periodic payment which can be used for a variety of purposes like for…

Q: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation expenses. She plans to…

A: Time value tells that money received today has more value than that of receiving the same value…

Q: Mrs Sam has deposited $ 18,000 in a bank at the rate of 7% per annum. Find out how much she will…

A: Given: Deposit = $18,000 Period 12 years Interest rate = 7% or 10%

Q: A mother wishes to set up a savings account for her son's education. She plans on investing $750…

A: Future value of ordinary annuity computes the total amount of periodic payments at a certain time…

Q: Isaiah wants to have $50,000 after six years in an account by making one single deposit. The account…

A: In the given question we require to calculate the initial deposit i.e. present value from following…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.