Q: If money is worth 5% compounded semi-annually, find the present value of a sequence of 12…
A: Present value of sequence is value today considering the interest rate and the period of annuity and…
Q: Deposits of $1000 are made semiannually into an account which earns 8% semiannually. If the deposits…
A: given data $1000 deposit are made semiannually for 9 years it earns 8% compounding interest…
Q: You have $1,800 to invest today at 8% interest compounded annually. Find how much you will have…
A: Information given in the question is as below: Investment today = $1800 Interest rate = 8% Time…
Q: Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following…
A: Present value is the present worth of any sum of money to be received in the future at a specified…
Q: How much will accumulate in an account with an initial deposit of $100, and which earns 10% interest…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: ou deposit $500 in an account earning 7% interest compounded annually. How much will you have in…
A: Given information: Present Value of deposited money : $500 Interest rate : 7% Time period : 10 years…
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: At the end of each quarter, a life insurance client deposits Ph 6,176 for 5 years. If money is worth…
A: Quarterly deposit (P) = Ph 6,176 Interest rate = 5.3% Quarterly interest rate (r) = 5.3%/4 = 1.325%…
Q: You deposit $600 in an account earning 7% interest compounded annually. How much will you have in…
A: Future value of a value is the amount which the grow from the principal amount to future amount with…
Q: Find the amount of an annuity consisting of 16 annual payments of $1000 each into an account that…
A: A regular series of fixed payments that are made or received at equal time intervals is term as the…
Q: A payment of $500 is made at the end of each month for three years to a savings account. The…
A: Present value method is used to evaluate the different level of investment projects. With the help…
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: Calculate the total amount of interest on interest earned five years from now if $100,000 is…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: if the money is worth 6% compounded semi-annually, find the present value and the amount of annuity…
A: Annuity refers to series of equalized payments that either made at start or end of specific interval…
Q: If you deposit $700 every year for the next 5 years, with first deposit to be made today and all…
A: Amount deposit per year = $700 Time period = 5 Years Interest Rate = 3.76%
Q: A depositor puts $30,000 in a savings account that pays 4% interest, compounded quarterly. Equal…
A: A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a…
Q: Find how much money needs to be deposited now into an account to obtain $40,000 in 5 years if the…
A: Future value (FV) = $40,000 Period (n) = 5 Years Interest rate (r) = 7%
Q: final amount of money in the account if $1200 is deposited at
A: Compounding quarterly can be considered as the interest amount which is earned quarterly on an…
Q: You invest $10,000 in an account which pays 3% compounded monthly. How much is in the account after…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: What is the final amount of $2696 payable every three months for 5 years and 9 months, if money is…
A: Here, Quarterly Payment is P2696 Time Period is 5 years and 9 months Time Period in Quarters (n)…
Q: A man loans 192,000 and promised to pay for 8 years at an interest rate of 5% compounded annually,…
A: Annual payment can be calculated by using the formula of the present value of annuity. Present…
Q: How much money must be deposited at the end of each year in a savings account that pays 9% per year,…
A: Compounded annually means at the end of every year, interest shall be added back to the principal…
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: You have $1,500 to invest today at 7% interest compounded annually. a. Find how much you will have…
A: We need to use compounding interest formula to solve this problem A=P(1+i)n Where A= Accumulated…
Q: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…
A: Compounding: It is the practice by which the interest is credited both to an existing principal…
Q: How much must be deposited at the end of each month for six year to accumulate $3250.00 at 5%…
A: Using excel PMT function
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: A sum of $1,000 is deposited at 8% interest, compounded annually for 5 years. What is the future…
A: In this question we require to compute the future value of investment from the details given.
Q: You invest $4,000 in an account that pays a fixed annual rate of 6% interest compounded yearly. How…
A: In the present question we require to calculate the future value after 7 years from the following…
Q: What is the balance in an account at the end of 10 years if $2,500 is deposited today and the…
A: Given: Present value (PV) = $2500 Interest rate (r) = 4% = 0.04 Time period (n) = 10 years
Q: You invest $800 in an account that pays simple interest of 4% for 5 years. Calculate the amount of…
A: Amount invested(P) = $800 Interest Rate(R) =4% Years(T) = 5 years Interest = P *R *T
Q: What is the balance in an account at the end of 10 years if $2,500 is deposited today and the…
A: In the given question we are required to calculate the future value from the following details:…
Q: Calculate the dollar amount that would be in a savings account at the end of 5 years, given an…
A: Initial investment (P) = 701 dollars Rate of interest (i) = 2.76% (Compounded monthly) Time period…
Q: Find the final amount of money in an account if $7,400 is deposited at 7.5% interest compounded…
A: The interest rate compounds semi-annually. Hence, the interest rate that should be considered is…
Q: Calculate the compound amount when $7000 is deposited in an account earning 9% interest, compounded…
A: Given information: Present value is $7,000 Rate of interest (r) is 9%, compounded quarterly Number…
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: Find the final amount of money in an account if $8,200$8,200 is deposited at 7%7% interest…
A: Compound interest: It is the interest on interest calculated on the principal amount of a loan or a…
Q: calculate the principal sum which, if deposited at 9.5% compound interest, will grow to £400 after…
A: Interest rate (r) = 9.5% compounded Future value (A) = £400 Time (n) = 3 years Principal (P) = ?
Q: If money is worth 9% compounded quarterly, find the amount of an annuity of P2,000 payable every 3…
A: Quarterly payment (Q) = P 2000 r = 9% per annum = 2.25% per quarter n = 10 years = 40 payments We…
Q: Find the final amount of money in an account if $8,900 is deposited at 7% interest compounded…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Find the lump sum deposited today that will yield the same total amount as payments of 250 at the…
A: This is a case of determining present value of an annuity. Annuity value (FV) = $250 Number of…
Q: If $550 is deposited at the end of each quarter into an account paying 8% compounded quarterly, how…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Find the final amount of money in an account if $4,900 is deposited at 4.5% interest compounded…
A: Compounding is a technique through which FV of present amount is computed by using appropriate rate…
Q: At the end of each quarter, a life insurance client deposits Ph 6,366 for 5 years. If money is worth…
A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…
Q: With an annual effective interest rate of 6%, 500 USD is deposited into an account at the end of…
A: we will be using time value of money concepts and formula for this calcualtion Time value of money…
Q: At the end of two years, what will be the balance in a savings account paying 6% annually if $10,000…
A: In this question we need to compute the future value after 2 years.
Q: Use the formula for computing future value using compound interest to determine the value of an…
A: The future value of the account can be computed by using the future value of a single deposit…
Find the final amount of money in an account if $700 is deposited at 6.5% interest compounded annually and the money is left for 5 years.
The future value is the future worth of the amount that will be paid or received in the future.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- 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.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 annuityYou put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
- 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.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. 2,0000.9264Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?