Q: How much will you need to save per month to have $200,000 after 12 years, if your account earns 5%…
A: The formula used as follows: Future value of annuity=Payment×1+rn-1r
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: 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: 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: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: Given: PV = Present value = $42,180.53 PMT = Annual payment = $5,000 Future value value = $250,000…
Q: You deposit $1000 each year into an account earning 6% interest compounded annually. How much will…
A: Future value of any deposits made is equivalent to the compounded value of deposits made for all the…
Q: If you deposit $10 000 in a bank account that pays 10 interest annually, how much will be in your…
A: Present Value is a current value of a future amount that is receivable or payable. While, Future…
Q: You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: The future value of annuity helps an investor or an individual to know the future value of their…
Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a. How much will…
A: Time value tells that money received today by an individual has more value than that of receiving…
Q: How much would you need to deposit in an account right now in order to have $2,000 in the account in…
A: Amount = $2,000 = A Time period = 10 years = T Interest rate = 2% = R Compounded monthly where it…
Q: How much money do you have to put into a bank account that pays 10% interest compounded annually to…
A: Present value is the today's value of the investment.
Q: IF you deposit $300 each quarter into an account earning 3.2% compunded quarterly, how many years…
A: Quarterly payment (PMT) is $300. Annual rate of return is 3.2% and Rate of return per quarter is…
Q: If you deposit $8,000 in a bank account that pays 4% interest annually, how much will be in your…
A: Deposit=$8000Interest rate=4%Number of years=5
Q: Suppose you invest $140 a month for 3 years into an account earning 8% compounded monthly. After 3…
A: Future value of ordinary annuity(cash flow due at the end of year) can be calculated by using this…
Q: Suppose you currently have $4,800 in your savings account, and your bank pays interest at a rate of…
A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…
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: Imagine that you deposit \$6,000$6,000 a year, starting one year from today, for four years into a…
A: We need to use future value of ordinary annuity(payment due at end of period) formula to get money…
Q: You need to have 80,000 at the end of 7 years. To accumulate this sum, you have decided to save a…
A: Time Period = 7 years Future Value Required = 80,000 End of period deposits Interest Rate = 11%…
Q: how much do you need to deposit now in a bank paying 6% interest compounded monthly if you want to…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: You deposit $1000 each year into an account earning 6% interest compounded annually. How much will…
A: Ordinary Annuity is way of payment where payment happens at the end of each period.
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: What is the amount a person would need to deposit today to be able to withdraw $6,000 each year for…
A: Present value (PV) is the current value of future money or cash flows at a specified rate of return.…
Q: You will need $46000 for a down payment on a house in 9 years. How much should you deposit in a…
A: Present value refers to the current worth of the amount that is expected to be received in future…
Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…
A: Future value is the expected value of annual deposit to be made at specified interest rate. Given:…
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: If you invest $1,000 in an account that pays an annual interest rate of 6.4%, compounded monthly,…
A: Computation:
Q: You deposit $3000 each year into an account earning 2% interest compounded annually. How much will…
A: Annual deposit (P) = $ 3000 Annual interest rate(R) = 2% Period (N) = 35 Years
Q: If you deposit $13,.224 annually at the end of every year in a bank account paying 8% annually. how…
A: Annual deposit (D) = $13,224 Period (n) = 5 Years Interest rate (i) = 8% (or 0.08) Amount saved at…
Q: What amount must I deposit in the bank to receive $6,000 in twelve years if my account pays 3.5%…
A: Interest is an additional amount which is received over the period at fixed rate. Depositor get sum…
Q: How many years will it take for your money to tripple if you deposit $300 in a bank account that…
A: Following is the answer to the given question
Q: You deposit $300 each month into an account earning 8% interest compounded monthly. a) How much will…
A: a) Money in account in 30 years: Solved using Financial Calculator PMT = -300 N = 12 * 30 = 360 I/Y…
Q: If you deposit 10000 in a bank account that pays 10% interest annually, how much will be in your…
A: The amount in the account after 5 years is future value of the deposited amount. Future value can be…
Q: How much money should be deposited annually in a bank account for five years if you wish to withdraw…
A: We required for calculating an amount for 5 years from this time. Then, we need to determine the…
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 $3000 each year into an account earning 8% interest compounded annually. How much will…
A: Future value of annuity is used to calculate the value of streams of cash flows in future at a given…
Q: How much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank…
A: Given details are : Present value = $1500 Time period = 12 years Interest rate = 5% We need to…
Q: You deposit $300 each month into an account earning 3% interest compounded monthly. a) How much will…
A: Monthly deposit (P) = $300 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 15…
Q: You deposit $200 each month into an account earning 5% interest compounded monthly. How much will…
A: Future worth of the amount is referred as the worth of the currently deposited amount at some future…
Q: If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your…
A: In the given question we require to compute the future value from following details: Present value =…
Q: You have maxed out your $10,000 credit card, which is being charged 12.8% annual interest compounded…
A: Calculation of minimum monthly and weekly payments:Answer:The minimum monthly payment and weekly…
Q: If you deposit $3,000 in a bank account that pays 12% interest annually, how much will be in your…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: How many years will be required for a given sum of money to be 8 times the principal amount, if it…
A: Let Present value be $100 So, future value will be = $100 * 8 = $800 Rate = 7.80%
Q: Suppose you invest $140 a month for 6 years into an account earning 7% compounded monthly. After 6…
A: Compounding can able to increases earnings generated from an asset by reinvesting it to achieve…
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: You
A: An annuity refers to a series of payments made at regular interval of time.
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…
How many years will it take for your money to tripple if you deposit $800 in a bank account that pays 14% a year, compounded semi-annually?
Step by step
Solved in 3 steps
- 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.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.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?
- 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?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 annuityCalculating 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?
- 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. 2,0000.9264If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
