If $25,000 is deposited in a 5% savings account and inflation is 3%, what is the value of the account at the end of Year 20 in Year-0 dollars? If the time value of money is 4%, what is the present worth?

Q: The company is going to invest P26,000, P34,000, P46,000, and P54,000 respectively into a savings…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: The amount of money that needs to be deposited into an account to reach some future goal is called…

A: The present value is the current value of an amount to be received in the future. It is calculated…

Q: What is the future value of $10,000 invest today in a savings account with an interest rate of 12%…

A: An amount deposited in the account earns interest for the duration of the investment. The amount…

Q: Casciani Company invests $61,000 today in a savings account that earns 10% compounded annually. What…

A: In this question we require to compute the future value if company invest $61000 today for 10 years…

Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…

A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…

Q: 800

A: Formula to calculate the future value of ordinary annuity is: FV = C*[(1+I)^n - 1/i] Where C is the…

Q: A year ago, you invested $1,000 in a savings account that pays an annual interest rate of 6%. What…

A: Approximate Annual Real Rate of Return = Nominal Rate of Return - Inflation Rate

Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…

A: Future Value of annuity due is the annuity in which payment is made at the beginning of the period…

Q: How much money will be in an account for 10 years from today if 20,000 is deposited today at a rate…

A: Following details are given in the question: Present value (Investment today) = $20000 Time period =…

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2   Cash flow diagram…

Q: A savings account’s value today is $150 and it earns interest at 1% per month. How much will be in…

A: Future Value = Present Value * (F/P, 1%,12) Where, Future Value =F Present Value = 150

Q: If you deposit $3,500 today into an account earnings an annual rate of return of 11 percent, what…

A: Deposit amount (P) = $ 3500 Interest rate (r) = 11% Period (t) = 35 Years

Q: What is the final value of $20, 000 if left in an account that pays 10% interest per annum for 30…

A: The final amount after 20 years will be the future value of the initial deposit.

Q: You will be receiving cash flows of:  $2,000 today, $2,000 at the end of year 1, $3,000 at the end…

A: Net Present Value(NPV) is excess of present value(PV) of all future cash inflows over initial outlay…

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: A businessman expects to receive P20, 000.00 in 10 years. How much is that money worth now…

A: Future value (FV) = P 20,000 Annual interest rate = 6% Quarterly interest rate (R) = 6%/4 = 1.50%…

Q: What single investment made today, earning 10 % annual interest, will be worth $10,000 at the end of…

A: A) The present value of a future value can be calculated using the formula below: Given; FV = 10000…

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: What is the future worth of $1,000 in month 1, $1,040 in month 2, and amounts increasing by $40 per…

A: Time value of money states that the value of money grows over time, the growth in the value of money…

Q: What's the future value of an initial $100 after 3 years if it is invested in an account paying 10%…

A: Given: Initial deposit = $100 Time =3 years Interest rate =  10% Future value = Initial deposit* (1…

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: A certain sum of money will be deposited in a savings account that pays interest at the rate of 6%…

A: The following information given in the question: Rate of interest : 6% compounded annually (I)…

Q: Assuming an interest rate of 10%, how much (rounded to nearest dollar) will need to be deposited in…

A: Annual deposit = Accumulated saving at the end of 8th year / Future value factor at 10%, 8 years

Q: olur? 06:031370160 i= %7.8 -%3,9 2 3 A=500 TL/yıl 2511 2887 2200 2776

A: Cash Outflows: Year Cash Flow 0 -500 1 -500 2 -500 3 -500 4 -500 Annual Interest…

Q: Consider a savings account with end-of-year transactions indicated by the following cash flow…

A: Given: Interest rate = 8% Years = 12

Q: Each month you put $69.60 into the bank, with an APR of 3%, how much with you have after 10 years.…

A: We will make use fo the financial calculator to calculate the FV. Inputs are: n = number of periods…

Q: You deposited $10,000 today into a saving account for 5 years with a market rate of 8% per year. The…

A: Deposit amount = $ 10000 Period = 5 Years Interest rate = 8% Inflation rate = 2%

Q: A savings account balance is compounded continuously. If the interest rate is 3.1% per year and the…

A: continous compounding formula: A=p×er×t where, p=principal r=rate t=time

Q: If you deposited $10,000 each year for 10 years and the interest rate is 5.00%, what is the value at…

A: INFORMATION: RATE 5% YEARS 10 PMT (MONTHLY DEPOSIT) 10000 PRESENT VALUE $0

Q: Suppose an income stream will produce income at a rate of 4000 + 1000t dollars per year for 5 years,…

A: Present value Present value of an amount with continuous compounding. With continuous compounding…

Q: How much are the 2 million dollars received annually over the course of 25 years worth in terms of…

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: If you put 20,000 in a savings account that pays interest at the rate of 4% compounded quarterly,…

A: Compound interest also called interest on interest. It is the addition of interest in the principal…

Q: After 6 years from today, what will be the purchasing power of the money in your bank account,…

A: Present Value of Investment  Adjusted Rate of Return with regards to Inflation rate

Q: If the nominal interest rate is 3% of P5,000, how much worth in 15 years continuously compounded…

A: Investment (P) = P 5000 Interest rate (r) = 3% Period (t) = 15 Years Mathematics constant (e) =…

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: Your savings account pays 4% interest on the $40,000 you deposited at time 0. Inflation was 3% for 4…

A: Given information: Principal value is $40,000 Interest rate is 4% Inflation is 3% for 4 years…

Q: What is the present value of end-of-year cash flows of 1000 per year, with the first cash flow…

A: Present value is the sum of discounted future cashflow

Q: A set of cash flows begins at $25,000 the first year, decreasing 10% each year until n = 10 years.…

A: The present value is the sum of cashflows discounted at given discount rate

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: If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what…

A: Future Value is the value of the current assets or some amount that is invested today and amount…

Q: What will be the future worth of money after 1 year, if the sum of P25,000 is invested today at a…

A: Future value of sum can be calculated with the help of future value function.

Q: At time 0 you had $2500 in the bank and 21 years later you had $15650.  Calculate the effective…

A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…

Q: present value

A: Present Value is the computed amount today of either a single sum amount or a series of payments to…