How long will it take for your funds to triple?
Q: Your bank pays 2.7% interest per year. You put $1,200 in the bank today and $600 more in the bank in…
A: We need to ise compound interest formula to calculate amount of money in 2 years A=P(1+i)n Where…
Q: You plan to borrow $1000 from a bank. In exchange fro $1000 today, you promise to pay $1080 in one…
A: Given: The amount that is planned to borrow today is $ 1000 The amount that is to be paid after one…
Q: Imagine you want to earn $1000 in total after 3 years. The Bank A says that account earns 5%…
A: In simple interest, the rate of interest is applied on the principal amount only whereas in compound…
Q: You have $100 and a bank is offering 5.0% interest on deposits. If you deposit the money in the…
A: Future value is the value of current asset or investment at a future date. Future value is…
Q: If you deposit $9,000 in a bank account that pays 10% interest annually, how much will be in your…
A: Calculate the future value as follows: Future value = Amount * (1+ rate)^ years
Q: How long would it take $1,000 to double if it were invested in a bank that pays 6% per year?
A: Data given is as follows: Investment (Present Value) = $1000 Investment (Future value) = $1000 * 2 =…
Q: If $25,000 is deposited in a 5% savings account and inflation is 3%, what is the value of the…
A: Given information : Deposited amount = $25,000 Interest rate on savings = 5% Inflation rate = 3%…
Q: Your bank pays 5% interest annually. You have $4,500 invested in the bank. How long will it take for…
A: Future Value = Present Value * (1+rate)^n Where rate = 5% n = years Future value = 4500*2 =9000
Q: You put $280 in the bank for 5 years at 8%. A. If interest is added at the end of the year, how…
A: Future value is directly proportional to the interest rate. If the interest rate is higher the…
Q: You deposit $3,000 in a bank account that pays 12% interest annually. How much will be in your…
A:
Q: Suppose you have an opportunity to invest in a fund that pays 12% interest compounded annually.…
A: Given: workings:
Q: You invest 1,000 today in a bank, which of the following one refers to the value of your investment…
A: Given: Amount = 1,000 Years = 5
Q: You expect to need $1500 in 3 years. Your bank offers 4% compounded semi-annually. How much money…
A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: Suppose that a person deposits $500 in a savings account at the end of each year, starting now, for…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Suppose you invested $50,000 into an account at a private bank that attracts annual interest of 20%…
A: The present value of a sum shows the amount of money available today. It is the discounted value of…
Q: You have $300 and a bank is offering 5.5% interest on deposits. If you deposit the money in the…
A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value = $300r = rate of interest = 5.5%n =…
Q: If you deposit $2,000 in a bank account that pays 6% interest annually, how much will be in your…
A: Solution- Given-The present value of deposit is=$2,000The rate of interest is=6%Time is…
Q: how many years your money will be doubled?
A: answer :- c) n= 6.12 years given present value PV= 10000 rate r=12% future value FV = 2*10000 =…
Q: Suppose you will save P 3,000 at the end of every three months in a bank that pays 3% compounded…
A: Future value is the value of an asset or a current asset at a future date based on an assumed rate…
Q: How much money should a man invest in a bank account paying 8 percent annual interest compounded…
A: Interest Rate = 8% Continuous Compounding Future Value Required = 20,000 T (Time Period) = 4 years…
Q: you wish to have $60,000 in 8 years how much do you need to deposit in the bank today if the account…
A: Formula: Present value = Future value / ( 1 + r )N R = Rate of interest N = Time period.
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: You want to accumulate $500,000 in a savings account in20 years. If the bank pays 6% compounded…
A: Future value: It can be defined as the value of an investment or any asset at a specified future…
Q: Suppose you want deposit $200 each month into an account earning 3.5% APR compounded monthly. a)…
A: Annuity is a fixed periodic payment made over a period of time, leading to the accrual of a definite…
Q: You put $6,150 in the bank for 15 years at 5%. Using the Future Value of 1 Table, what factor would…
A: Future Value is known as Terminal Value. The accrued amount of FVn on principal amount after n…
Q: you Php2,000,000 at the end of 20 years in a bank earning 2% interest compounded semi- annually, how…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…
A: Deposit = $4,000 Withdrawal after 2 years = $2,000 Remaining Withdrawal = 4 years Interest Rate =…
Q: You deposit $5,000 in a savings account that earns 6% simple interest per year.How many years will…
A: We can use excel spreadsheet to solve this problem.
Q: (a) A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to…
A: a) Let the initial amount = P Final amount = Double of the initial amount = 2P r = 5.5% per annum =…
Q: Solve the following problem. If P100,000.00 is invested in a bank at 4.5% simple interest annually,…
A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…
Q: If you earn 5% per year on your bank account, how long will it take an account with $110 to double…
A: The present value is the present worth of the amount that is paid or received in the future.
Q: If PhP75,000 in a savings account earns PhP3,825interest, in a year and PhP75,000 worth of stock…
A: if php deposits 75000 in savings accounts that mean he getting 5.1 percentage but in stocks he…
Q: K Suppose you receive $500 at the end of each year for the next three years. a. If the interest rate…
A: Present value is the value right now of some amount of money in the future. Formula : PV = FV x…
Q: If an investor intends to double $35,000 by investing in a bank that pays 6% interest per year,…
A: Present value = $ 35000 Future value = 35000*2 = $ 70,000 Annual interest rate = 6%
Q: If you deposit $20,000 in a bank account that pays 5% interest annually, how much will be in your…
A: The provided information are: Present value (PV) = $20,000 Rate of interest (r) = 5% = 0.05 Time…
Q: You put $250 in the bank for 5 years at 12%. Using the Future Value of 1 Table, what factor would…
A: The Future Value can be calculated from Future value table using the following formula Future…
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 you have an opportunity to invest in a fund that pays 12% interest compounded annually.…
A: The investment is refer as engaging funds with an financial institution or bank at specific rate of…
Q: How long will it take $52,000 placed in a savings account at 10% interest to grow into $77,000?
A: We need to calculate the number of years in which investment become $77000 in future by investing…
Q: You borrow $10,000 from a bank for three years at an annual interest rate of 12% compounded…
A: Loan (L) = $10000 Interest rate = 12% compounded semiannually Duration = 3 years = 36 months We need…
Q: if you had $ 100,000 hat was invested at 7% and you wanted o withdraw $10,000 at the end of each…
A: (a) Amount invested=$ 100,000 Interest rate=7% Periodic withdrawals=$10,000 Formula:…
Q: How long would it take $1,000 to double if it was invested in a bank that paid 6% peryear? How long…
A: Note: Since here nothing is mentioned about the type of interest, we will assume it as compound…
Q: How much would be in your savings account in 7 years after depositing $350 today if the bank pays 10…
A: To calculate the future value we will use the below formula Future value = P*(1+r)t Where P -…
You have $5,000 invested in a bank that pays 4% annually. How long will it take for your funds to triple? Round-off answer to 2 decimal values. *
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- 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.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.Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
- 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?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. 2,0000.9264Your local bank pays 4% interest annually. You have $5,000 invested in the bank. How long will it take for your funds to double? Please show your work in excel.
- You have $5,000 invested in a bank that pays 4.8% interest, compounded weekly. How many weeks will it take for your funds to triple? (please solve using Microsoft excel)Your bank pays 5% interest annually. You have $4,500 invested in the bank. How long will it take for your funds to double? How would this change if the bank pays rather 8% instead of 5%?If you earn 10% per year on your bank account, how long will it take an account with $115 to double to $230? (Don't round intermediate calculations. Round answers to 2 decimal places)
- How much would be in your savings account in 7 years after depositing $350 today if the bank pays 10 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)An investor has accumulated $6,800 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 5%. A one-year bank certificate of deposit will pay 7%, but the minimum investment is $9,800. Required: Calculate the amount of return the investor would earn if the $6,800 were invested for one year at 5%. Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 15%, and then $9,800 were invested for one year at 7%. Calculate the net rate of return on the investment of $6,800 if the investor accepts the strategy of part b. Note: Round your answer to 2 decimal places.If you invest €1,000 in a savings account that pays 4 per cent every year, how long would it take you to triple your money? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Number of years