For the last 3 years Homer has made deposits of $213 at the end of every six months earning interest at 4.48% compounded semi-annually. If he leaves the accumulated amount in an account earning 1.72% compounded quarterly, what will the balance be in Homer's account at the end of another 7 years? Round your answer to the nearest dollar. Full solution to this problem required in the rough work.

For the last 3 years Homer has made deposits of $213 at the end of every six months earning interest at 4.48% compounded semi-annually. If he leaves the accumulated amount in an account earning 1.72% compounded quarterly, what will the balance be in Homer's account at the end of another 7 years? Round your answer to the nearest dollar. Full solution to this problem required in the rough work.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 10PROB

See similar textbooks

Similar questions

Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
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.
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
Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual interest rate of 3.5%, due in 6 months. What journal entry is created when Jain honors the note?
You 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.
For the last four years Joe has made deposits of $200 at the end of every six months earning interest at 6% compounded semi-annually. If he leaves the accumulated balance in an account earning 7% compounded quarterly, what will the balance be in Joe's account at the end of another ten years?
For the last six years Joe has made deposits of $400 at the end of every six months earning interest at 6% compounded semi-annually. If he leaves the accumulated balance in an account earning 7% compounded quarterly, what will the balance be in Joe's account at the end of another nine years?
Erica deposits $1,400 at the end of every 3 months in an RRSP that is earning 6.90% compounded semi-annually. For the RRSP to accumulate to $38,000, calculate the following: a. How many deposits will he have to make? Round up to the next whole number b. How long will he have to make these deposits? years months Express the answer in years and months, rounded to the next payment period
Dylan deposits $10,000 now and makes an additional deposit of $5,000 at the end of Year 3 in the same account. Determine the balance in the account at the end of 10 years if the interest rate is a nominal 8%, compounded quarterly
A man deposits $14,000 at the beginning of each year for 14years in an account paying 77% compounded annually. He then puts the total amount on deposit in another account paying 9%compounded semiannually for another 9years. Find the final amount on deposit after the entire 23 year period. (Simplify your answer. Round to the nearest cent as needed.)
Hui deposits $800 at the end of every 3 months in an RRSP that is earning 5.10% compounded semi-annually. For the RRSP to accumulate to $33,000, calculate the following: a. How many deposits will he have to make? b. How long will he have to make these deposits? (Years & Months)
Jane Adele deposits $1,500 in an account at the beginning of each 3-month period for 11 years. If the account pays interest at the rate of 4%, compounded quarterly, how much will she have in her account after 11 years? Solve the problem. (Round your answer to the nearest cent.)