How much money must be deposited at the end of each yearin a savings account that pays 9% per year, compoundedannually, in order to have a total of $10 000 at the end of 14years?Compound Amount Factor(F/A, 9%, 14) = 26.0192Capital Recovery Factor(A/P, 9%, 14)= 0.12843317A. $1284.33B. $384.33Present Worth Factor(P/A, 9%, 14) = 23.8708Sinking Fund Factor(A/F, 9%, 14) = 0.03843317C. $418.92D. $207.29

Compounded annually means at the end of every year, interest shall be added back to the principal…

Answered: How much money must be deposited at the…

How much money must be deposited at the end of each year in a savings account that pays 9% per year, compounded annually, in order to have a total of $10 000 at the end of 14 years?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: What is the value of an annuity at the end of 10years if $1,000 is deposited every six months into…

A: Introduction: Future value of an ordinary annuity can be defined as a metric which helps to know how…

Q: How much must be deposited at the beginning of each year in an account that pays 3% compounded…

A: Time value tells that amount received today is of more value than that of receiving the exact value…

Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…

A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

Q: How much money will be in the bank account at the end of 4 years if $5000 is deposited at the end of…

A: Future value: It implies to the value that an investment will carry at some point of time in future…

Q: If money is worth 8% annually, what annual payment is required to raise ₱ 18,811 after 2 years if…

A: Future Value of Annuity Due = (1 + r) x P x [{(1 + r)^n} - 1] / r

Q: How much would you need to deposit in an account each month in order to have $10,000 in the account…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

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: You deposit $600 in an account earning 7% interest compounded annually. How much will you have in…

A: Future value of a value is the amount which the grow from the principal amount to future amount with…

Q: The amount a person would need to deposit today to be able to withdraw $6,000 each year for ten…

A: Working note:

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: If you deposit $8700 today in an account that pays 8.5% per year, compounded quarterly, how much…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an account that…

A: The provided information are: Future value (FV) = $ 140000 Time period (n) = 13 years Interest rate…

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: 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: 14: Ali deposits $ 1000 in a savings account at the end of each year. If the bank pays interest rate…

A: The correct answer is 5638.09$ Future value = Amount (1+r)^n = 1000(1.06)^4 + 1000(1.06)^3 +…

Q: If P30,000.00 is deposited each year for 10 years, how much annuity can a person get annually from…

A: Amount deposited each year for 10 years is P30,000 Cost of monry is 14% Total number of withdrawals…

Q: You have a financial goal of $140,000. The rate is 3% compounded annually. The time is 16 years.…

A: Formula to calculate annual periodic deposit Annuity=FV *r[(1+r)n-1] Where, FV = Future value r =…

Q: You deposit $3000 each year into an account earning 5% interest compounded annually. How much will…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: How much must I deposit into an account every month to have $1,500,000 in 15 years at a rate of 7%…

A: A recurring deposit is a special type of term deposit offered by banks which help people with…

Q: What present amount of money must be deposited at 11% interest compounded annually to grow to…

A: Formula to calculate compound interest is: A = P(1+r/n)^nt Where A is the future value, P is the…

Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: If P10,000.00 is deposited each year for 9 years, how much annuity can a person get annually from…

A: First we need to calculate future value of annuity for 9 years by using this equation FV of annuity…

Q: The plan was to leave $8,000 on deposit in a savings account for 15 years at 7.5% interest…

A: Deposit amount now (D) = $8000 Interest rate (r) = 7.5% Withdrawal after 5 years (W) = $2000 Period…

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 $5000 at the beginning of each year into an account earning 3% interest compounded…

A: Introduction: Annuity Due: It refers to the series or stream of equal payments made at the beginning…

Q: How much should Mang Juan deposit in his account every month to accumulate 1,000,000 in 15 years if…

A: Given information : Expected amount 1000000 Time period 15 Interest rate 7% Effective…

Q: If you deposit $3,500 into an account earning an annual rate of 11% what would your account be worth…

A: To calculate the value of account after 35 years we will use the below formula Value after 35…

Q: How much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in exceL. FV function computes amount BALANCE in…

Q: You make deposits of $300 each year for the next 17 years at 5 % compounded annually. How much is in…

A: Annual deposit (P) = $300 Interest rate (r) = 5% Period (n) = 17 Years

Q: If you deposit $25,000 per year for 13 years (each deposit is made at the end of each year) in an…

A: The question is based on the concept time value of money. The future value is defined as the value…

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: At what rate must funds be continuously added to a savings account in order to accumulate $13,000 in…

A: Amount to accumulate = $13,000 Time period = 5 years Interest rate = 6%

Q: How much will I need to deposit into an account to have $6,500,000 in 10 years earning 5 %…

A: The provided information are: Future value (FV) = $6500000 Interest rate (r) = 5% Number of years…

Q: How much must be deposited at the beginning of each month in an account that pays 6% compounded…

A: Monthly rate = 6%/12 = 0.5% Number of periods = 7*12 = 84 Future value required is $31,000 Find…

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: If P30,000 is deposited each year for 9 years. How much annuity can a person get annually from the…

A: An annuity refers to a fixed amount or stream of payments or deposits made. Therefore, it helps in…

Q: You deposit $6000 in an account earnings 7% interest compounded monthly. How much you will you have…

A: future value formula: future value = present value×1+RMM×N where, R=rate M=frequency

Q: How much would you need to deposit in an account now in order to have $6000 in the account in 15…

A: Present Value is the today's value of a future amount at a given interest rate for a specified time…

Q: Supposed that P2,000 is deposited each year , on a continues basis into a savings account that pays…

A: Annual deposit (P) = P2000 Interest rate = 6% Mathematics constant (e) =…

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: 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: You deposit $3000 in an account earning 3% interest compounded monthly. How much will you have in…

A: Given:Deposit amount=$3000Rate=3% interest compounded monthly.To compute:Amount in account after 15…

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 would be in an account if $6,200 is deposited at 2% interest compounded semi-annually…

A: Time value tells the amount received by an individual today is of more worth than the same amount…

Q: At the end of two years, what will be the balance in a savings account paying 6% annually if $10,000…

A: In this question we need to compute the future value after 2 years.

Q: The amount a person would have to deposit today to be able to take out $600 a year for 10 years from…

A: Amount need to deposit today = $ 4,026.05

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

100%

How much money must be deposited at the end of each year
in a savings account that pays 9% per year, compounded
annually, in order to have a total of $10 000 at the end of 14
years?
Compound Amount Factor
(F/A, 9%, 14) = 26.0192
Capital Recovery Factor
(A/P, 9%, 14)= 0.12843317
A. $1284.33
B. $384.33
Present Worth Factor
(P/A, 9%, 14) = 23.8708
Sinking Fund Factor
(A/F, 9%, 14) = 0.03843317
C. $418.92
D. $207.29

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If 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?
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. $132,600
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
Future Value Hugh Colson deposited 20,000 in a special savings account that provides for interest at the annual rate of 12% compounded semiannually if the deposit is maintained for 4 years. Required: Calculate the balance of the savings account at the end of the 4-year period.
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 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 annuity
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?