Find the future value after four years of $40,000 in an account earning 10% simple interest. Calculate the future value of $40,000 earning 8% interest, compounded daily, for four years. After four years, which account would hold greater value, and by how much more money?

Q: If you put 1,000 in a savings account that yields an 7℅ annual rate of interest that is compounded…

A: Given: Present value = 1,000 Interest rate = 7% Periods = 25 weeks

Q: How much should you invest into an account with 3.2% interest compounded quarterly if you want to…

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

Q: You want to be able to withdraw $4000 from an account at the end of each 6-month period (that is,…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: You deposit $100 each month into an account earning 6% interest compounded monthly. a) How much…

A: Future value refers to the amount worth in future time which is deposited today by an investor at…

Q: How much money should be invested in an account that earns 9% interest, compounded quarterly, in…

A: Given data; interest rate = 9% future value = $ 5000 number of years = 5 compounding frequency = 4

Q: Suppose that a person deposits $2500 in a savings account at the end of each year for the next 15…

A: Here, Annual Deposits is $2,500 Interest Rate is 8% Compounding Period is Daily i.e. 365 Payment…

Q: Consider a $5,000 deposit earning 10 percent interest per year for 10 years. What is the future…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

Q: Solve each of the following questions using both pricing formulas and Excel.  1. If you wish to…

A: Present value refers to the current value of money which is required to put for a certain amount in…

Q: You have $14,000 in the bank today.  How much would you need to save each year in order to…

A: Current amount (C) = $14000 Let the annual saving = A r = 10% n = 30 years Accumulated value = $3…

Q: Suppose you invest $1,100 in an account paying 5% interest per year. What is the balance in the…

A: The Future Value of a lump-sum: The value of a one-time investment made at present earns interest…

Q: Determine the value of n and t in each problem below. In the coming three years, you will need Php…

A: solution Given for first question Future value needed 200000 Present value ?…

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: If you deposit ​$3,500 today into an account earning an annual rate of return of 11 ​percent, what…

A: Deposit today (P0) = $3,500 Annual rate of return (i) = 0.11 Period (p) = 40 years Account worth in…

Q: A bank projects that the value of an account they hold will be $2, 000, 000 in 5 years. If the…

A: Future value (FV) = $2,000,000 Period (t) = 5 Years Interest rate (r) = 5% Mathematics constant (e)…

Q: If a person spends $10 a week on coffee (assume $500 a year), what would be the future value of that…

A: In the given question we require to compute the future value.

Q: ou deposit $300 in an account earning 6% interest compounded annually. How much will you have in the…

A: Amount Deposited = $300 Interest Rate(r) =6% Years(N) =10

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: If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much…

A: PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate  n= Number of period ) FV=…

Q: ompute how much you would have in a savings account 5 years from now if you invest 1,000 today, take…

A: Solution 1: Annual interest rate = 8% Nos of periods = 5 Future value = 1,000 * (1+0.08)^5 = 1,000 *…

Q: Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but…

A: The interest rate that did not take inflation, any fees on the loans, and compounding of the…

Q: A young executive deposits $400 at the end of each month for 4 years into an account that earns 6%…

A: Formulas:

Q: f  you  deposit  $10,000  in  a  bank  account  that  pays  10  percent  interest  annually,  how…

A: Future value = Principal*(1+r/100) ^n Where,  r = rate of interest n = no. of years

Q: If you deposit ​$3,500today into an account earning an annual rate of return of 11​percent, what…

A: Rate of return (r) = 0.11 or 11% Initial deposit (I) = $3,500 Future value (FV) = ?   Future value…

Q: a) Let's say you invest $10,000 into each account. What is the final amount after 10 years? b) How…

A: Future Value: It represents the future worth of the present amount and is estimated by compounding…

Q: You deposit $4000 each year into an account earning 8% interest compounded annually. How much will…

A: given  PMT = 4000 n= 20 years i=8% FV = ?

Q: A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly.…

A: The question is based on the concept of Future Value

Q: Suppose you invest $120 a month for 5 years into an account earning 9% compounded monthly. After 5…

A: Computation:

Q: If you deposit 3500 today into an account earning an annual rate of 11% what would your account be…

A: To calculate the amount of account after 40 years by using below formula   Value of account after 40…

Q: Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: Suppose that each week, you deposit $43 into a savings account whose annual rate is 1.8% with weekly…

A: We need to use future value of annuity formula to calculate balance of account after 14 years. FV…

Q: Suppose you contribute $10 per week ($520 per year) into an interest-bearing account that earns 6% a…

A: Calculation of the funds that must be saved at end of 15 years:- Money that have been saved by…

Q: Suppose you have decided to put $500 at the beginning of every month in a savings account that…

A: Monthly deposit (m) = $500 Monthly interest rate (r) = 0.00416666666666667 (i.e. 0.05 / 12) Number…

Q: If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would…

A: Compound interest (also known as compounding interest) is the interest on a loan or deposit that is…

Q: You are depositing $3,000 today in an account with an expected rate of return of 10%. If you deposit…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: If you initially invest $3500 in an account that earns 4.7% interest compounded daily, how much will…

A: Initial investment (PV) = $3500 Interest rate (r) = 4.7% Number of compounding per year (m) = 365…

Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…

A: The future value is the future worth of the amount that will be paid or received at future.

Q: You deposit $300 each quarter into an account earning 5.8% interest compounded quarterly. a) How…

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

Q: You deposit $200 each month into an account earning 8% interest compounded monthly. Round to the…

A: Answer b) Total amount put by us in account:   = Amount monthly invested * 12 * number of years =…

Q: Suppose that $8000.00 was invested in a savings account that paid 2.5% interest compounded…

A: Number of compounding periods = Number of years * 4 quarters per year = 3 * 4 = 12 quarters   Rate…

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 want to be able to withdraw $25,000 each year for 20 years. Your account earns 10% interest.…

A: Part A-C:Calculation of Amount in the Account, Total Money in the Account and Total Interest:A) The…

Q: Suppose you invest $120 a month for 5 years into an account earning 8% compounded monthly. After 5…

A: The future value is an estimation of value received in future on the basis of periodic cash deposits…

Q: Omar put OMR 800 in a savings account with a 10% nominal rate of interest compounded daily what will…

A: Deposit = 800 Interest Rate = 10% Time Period = 2 years

Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much…

A: Annuity amount = $100 Monthly rate of interest = 0.6667% (8.00% / 12) Number of months = 300 months…

Q: Suppose that you invest $20 000 in an account paying 8% interest. You plan to withdraw $2000 at the…

A: Investment = $ 20,000 Annual interest rate = 8% Annual withdrawal = $ 2000 Period = 15 Years

Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: You deposit $1000 each year into an account earning 8% compound annually. A) How much will you have…

A: ordinary annuity-in which payment is end of each period. annuity due :-payment is made at beginning…