Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much will…
A: Each month $100 is to be put into an account earning 8% interest compounded monthly. Periodic…
Q: If you deposit $250 each month into an individual retirment account that earns 4.8% interest…
A:
Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…
A: Interest rate is the rate that is charged on the money (Principal) lent by the lender to the…
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: the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of…
A: The future value of annuity due is the total future value of each cash flow which is made at the…
Q: You just deposited $9,500 in a bank account that pays a 4.0% nominal interest rate, compounded…
A: Future value is referred to as the value of the current asset in future date on the basis of an…
Q: You deposit $400 each month into an account earning 6% interest compounded monthly. How much will…
A: FV of annuity=P1+rn-1rwhere,P=Periodic paymentr=rate per periodn=number of periods
Q: If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a…
A: Ordinary Annuity means a series of equal payments that are made over a fixed length of time at the…
Q: How much money must be deposited at the end of each year in a savings account that pays 9% per year,…
A: Future value (FV) = P10,000 Interest rate = 9% e = 2.7182818284590452353602874713527 Effective…
Q: How much (in dollars) is needed in an account that earns 10.8% compounded monthly to withdraw $1,000…
A: The formula used as follows: Present value=A1-11+rnr
Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…
A: Individuals deposit a sum of money into savings accounts in order to earn interest and accumulate a…
Q: You want to be able to withdraw $5800 each year for 10 years. Your account earns 3% compound…
A: An annuity is the plan that gives a fixed amount in return for a lump sum. It is usually made with…
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: 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: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…
A: There are various types of Bank Accounts, one of the basic and most commonly used is Saving's…
Q: How much will the account contain after 9 years and 3 months? How much interest will be earned?
A: Deposit amount = $600 Interest Rate = 5±70 compounded quarterly i.e 4.3 or 5.7 compounded quarterly…
Q: You want to be able to withdraw $1,000 from a savings account at the end of year 1, with withdrawals…
A: The present value of a growing annuity is the current value of an annuity which is growing at a…
Q: How much would you need to deposit in an account now in order to have $6,000 in the account in 8…
A: In order to solve this question one has to solve for the present value to know how much to save into…
Q: If you have $1,051.75 going into a long term savings account monthly, for 4 years, that pays and APR…
A: Here we can apply the principles, concepts and formula of time value of money to solve the question.…
Q: Supposed you deposited rm5000 in a bank account that pays 5.25%with daily compounding based on a 360…
A: Principal (PV)=5000, Interest rate (rate)=5.25%, compounding daily. time period = 8 months, Total…
Q: How much money must initially be deposited in a savings account paying 5% per year, compounded…
A: Formulas:
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: You deposit $27,000.00 in an account that pays 4% compounded annually and immediately start making…
A: Given:
Q: Suppose you have decided to put $200 at the beginning of every month in a savings account that…
A: Compound Interest Formula: Future Value of Annuity (A)=P×1+rnn×t-1rn Where, A=final amountP=initial…
Q: Goldberg planned to build a P1,500,000-house after 2 years. How much should be deposited in a…
A: Amount To be deposited now is Present value = Future Value/(1 + Interest rate)n Where , Interest…
Q: You deposit $3000 each year into an account earning 5% interest compounded annually. How much will…
A: Annuity payments: It refers to the fixed payment made in series or equal time intervals. Example:…
Q: If you invest $1,000 in an account that pays an annual interest rate of 6.4%, compounded monthly,…
A: Computation:
Q: What is the future value of $1,100 placed in a savings account for 4 years if the account pays 7%…
A: Following information is given in the question: Present value (Investment today) = $1100 Time period…
Q: 1) You put $150,000 into a savings account paying 3% compounded monthly. How many full monthly…
A: Number of total monthly withdrawals is required to know. If the number of total monthly withdrawals…
Q: You deposit $600 each month into an account earning 4% interest compounded monthly. a) How much…
A: The future value of the account can be calculated with the help of future value of annuity function.…
Q: How much will you need to save per month to have $200,000 after 12 years, if you account earns 5%…
A: Compound interest = P"(1+r%/n)^tn Since the final amount is given , we need to calculate the…
Q: You put \$1,000$1,000 into a savings account today that offers a 5\%5% APR with semi-annual…
A: Banks usually offer loans to customers, and they also accept deposits from the customers. The…
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: Suppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 forfour…
A: Time value of money (TVM) means that the money received today will be worth more than the money…
Q: How much money should be invested in an account that earns 9.5% interest, compounded monthly, in…
A: It can be calculated using following formula PV = FV / (1 + r / n)nt Where, PV = Present value FV =…
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 deposit $3000 in an account earning 3% interest compounded monthly. How much will you have in…
A: Present value is $3,000. This amount earns interest at 3% interest rate that compounds monthly.…
Q: How much should you save, monthly, in an account bearing 6.25%, compounded monthly, to $30,000 for a…
A: Excel Spreadsheet:
Q: How much money should be deposited today in an account that earns 5.5% compounded monthly so that it…
A: Amount after 3 years = $12,000 Interest Rate= 5.5% per annum Interest rate monthly = 5.5/12=…
Q: How much money must be deposited in a savings account each quarter in order to accumulate $10,000 at…
A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…
Q: How much would you need to deposit in an account now in order to have $4000 in the account in 5…
A: We need to use compound interest formula given below to solve this problem. A=P(1+i)n Where A= Final…
Q: You deposit $4000 in an account earning 2% interest compounded daily. How much will you have in the…
A: Given, Deposit amount = $4000 Interest rate = 2% Compounding = Daily
Q: You
A: An annuity refers to a series of payments made at regular interval of time.
Q: If you need 6,000 5 years from now, how much of a deposit must you make in your savings account…
A: Future value (FV) = 6000 Number of annual payments (n) = 5 Annual interest rate (r) = 8%
I need the answer soon please
Step by step
Solved in 3 steps
- 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.Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600Calculating 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?
- 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.Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?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
- 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?
