How much should you invest into an account with 3.2% interest compounded quarterly if you want to recieve a payment of $1000 each quarter for the next 5 years ? Can you possibly show what equation is used instead of excel ? Thank you

How much should you invest into an account with 3.2% interest compounded quarterly if you want to recieve a payment of $1000 each quarter for the next 5 years ? Can you possibly show what equation is used instead of excel ? Thank you

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

See similar textbooks

Related questions

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 would you need to deposit in an account each month in order to have $50,000 in the account…

A: Given: Future value = $50,000 Time =8 years Monthly period = 8*12 = 96 Interest = 4.5% So, monthly…

Q: How much money should be invested in an account that earns 9% interest, compounded quarterly, in…

A: Given data; interest rate = 9% future value = $ 5000 number of years = 5 compounding frequency = 4

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: The future value of a present sum of money after n periods is given by the formula Future…

Q: How much should you invest into an account with 3.2% interest compounded quarterly if you want to…

A: Given that;Payment amount is $1000 Interest rate is 3.2%, as it is compounded quarterly, the rate we…

Q: Solve each of the following questions using both pricing formulas and Excel. 1. If you wish to…

A: Present value refers to the current value of money which is required to put for a certain amount in…

Q: You are going to deposit $3,400 in an account that pays .40 percent monthly interest. How much will…

Q: Suppose that you need to take out a loan today and anticipate being able to pay back $50,000 sixteen…

A: Let the loan amount = X Amount to payback (A) = $50000 n = 16 years

Q: What effective annual rate can a bank earn on an APR of 10.5 percent, compounded monthly? Can the…

A: Given information: Annual percentage rate : 10.5% Compounding frequency : 12

Q: If you initially invest $2200 in an account that earns 2.25% interest compounded continuously, how…

A: Initial investment (P) = $2200 Interest rate (r) = 2.25% Period (t) = 3 Years Mathematics constant…

Q: How much money would you have at the end of 15 years if you initially invested $7,500 at a nominal…

A: Concept. A = P (1 + r)n Where A = amount including compound interest. P = principal amount R = rate…

Q: 1. (a) A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money…

A: We use NPER to find time and Rate function to find APR

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: Option 1: Deposit $ 500 now Future Value = Present Value*(1+ Interest rate)n Solved using Financial…

Q: How much should you deposit each month in order to save $20,000 in five years? The account you will…

A: Details: RATE (5.75%/12) 0.479167% PERIOD (12*5) 60 PRESENT VALUE $0 FUTURE VALUE $20,000

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

A: formula to be used = Future value=PMT(1+r/n)n*t-1)/r/n PMT= Monthly payment R= interest rate N=…

Q: You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g.,…

A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…

Q: Suppose you want to have $400,000 for retirement in 20 years. Your account earns 5.1% interest. How…

A: Future value required (FV) = $400,000 Interest rate = 5.1% Monthly interest rate (r) = 5.1%/12 =…

Q: You just received a $5,000 bonus. a. Calculate the future value of $5,000, given that it will be…

A: Bonus received = $5,000 Future value is computed in all the parts by using an excel formula.

Q: 1. How much interest will be earned on $10,000 in 5 months if the annual simple interest rate is…

A: Answer 1: Information Provided: Present value = $10,000 Time = 5 months Interest rate = 2%

Q: You plan to deposit $2,300 per year for 5 years into a money market account with an annual return of…

A: Annual deposit is $2,300.Total number of deposits is 5.Annual return is 2%.The below expression can…

Q: If you want to earn 5% annual simple interest on an investment, how much should you pay for a note…

A: To solve this question one has to find the present value. Present value is the value of an…

Q: IF you deposit $300 each quarter into an account earning 3.2% compunded quarterly, how many years…

A: Given that;Quarterly deposit amount (pmt) is $300Future value of the amount is $15,000Interest rate…

Q: ompute how much you would have in a savings account 5 years from now if you invest 1,000 today, take…

A: Solution 1: Annual interest rate = 8% Nos of periods = 5 Future value = 1,000 * (1+0.08)^5 = 1,000 *…

Q: An advertisement of an investment firm states that if you invest P500 in their firm today you will…

A: Interest Amount = Maturity Amount - Investment Amount Nominal rate = [ Interest Amount /…

Q: Assume you make a single deposit of $1000 into a savings account that pays interest at 0.5% per…

A: Monthly compound interest relates to the compounding of interest on a monthly basis, which indicates…

Q: You just opened a brokerage account, depositing $4,000. You expect the account to earn an interest…

Q: You put $1,000 into a savings account today that offers a 55% APR with semi-annual compounding…

A: GIVEN, PV = $1000 N = 2 M = 2 (SEMI ANNUAL) R=55%

Q: Suppose that a savings account attracts an interest rate of 1.6% per annum. How much would need to…

A: Present value means the current value of future money or cash flow given a specified rate of return.…

Q: You plan to deposit $2,300 per year for 5 years into a money market account with an annual return of…

A: The formula to calculate future value of annuity is given below,

Q: Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: what is the future value of an mortar $300 after 4 years if it has invested in an account paying an…

A: Here, Amount is $300 Time Period is 4 years

Q: I. Hamilton wants to accumulate ₺30000 at the end of 4 years. It starts quarterly payments in a bank…

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

Q: You want to be able to withdraw $50,000 each year for 30 years. Your account earns 5% interest.…

A: This the question of present value of ANNUITY. Annuity is a equal stream of cashflow at equal…

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

A: PV = FV/(1+r)^n

Q: If 10,000php is invested in account paying 6% compounded quarterly; A. How much will be in the…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: You deposit $300 each quarter into an account earning 5.8% interest compounded quarterly. a) How…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: You make an investment into a money market account at time T=0. In year T=5, the value of the money…

A: Given: Time period: 5 years Future value: $5000 Rate of interest: 5% compounded quarterly To…

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: 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: ffering MACY’S has a six-year term deposit that will pay 7% per annum compounded quarterly. If…

A: EAR stands for effective annual rate. EAR is greater than APR (annual percentage rate) when the…

Q: Suppose you have deposited $10,000 in your high-yield saving account today. The savings account pays…

A: Initially, we shall calculate the amount available in the account after 1.5 years which can be…

Q: How much will you investment be worth in 5 years?

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: Suppose I have the choice of investing $25000 in two different accounts: Acct 1: 4.5%…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: What is the initial amount, rounded to the nearest cent, that you would need to invest into an…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Question

How much should you invest into an account with 3.2% interest compounded quarterly if you want to recieve a payment of $1000 each quarter for the next 5 years ?

Can you possibly show what equation is used instead of excel ? Thank you

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

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 2 images

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, finance and related others by exploring similar questions and additional content below.

Similar questions

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?
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.
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