Determine the future value in the account: Lottery winnings of $2,900 are investedin a traditional savings account for 4 years earning 0.75% interest. The savingsaccount has monthly compounding.Round your answer to the nearest cent (hundredth-2 decimal places). DO NOTinclude a $(dollar sign) in your answer.Your Answer:Answer For each APR, determine the APY. Record your answer as a percent rounded to thenearest hundredth (2 decimal places).✓ SavedQuestion 4ListenDetermine the APY: 4.96% APR compounded monthlyRecord your answer as a percent rounded to the nearest hundredth (2 decimalplaces).Your Answer:5.07Answer%units

STEP 1 An annual percentage yield, or APY, measures the amount of money or interest you make on…

Determine the future value in the account: Lottery winnings of $2,900 are invested in a traditional savings account for 4 years earning 0.75% interest. The savings account has monthly compounding. Round your answer to the nearest cent (hundredth-2 decimal places). DO NOT include a $ (dollar sign) in your answer. Your Answer: Answer

Determine the future value in the account: Lottery winnings of $2,900 are invested in a traditional savings account for 4 years earning 0.75% interest. The savings account has monthly compounding. Round your answer to the nearest cent (hundredth-2 decimal places). DO NOT include a $ (dollar sign) in your answer. Your Answer: Answer

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 7CE

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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
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Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
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?
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