If P10,000 is deposited in a bank for 10 yrs at an interest rate of 7% compounded quarterly, determine: a. the total amount at the end of 10th yr; b. yearly increase of the investment; and c. effective rate of interest

Q: Standard Chartered Bank Berhad pays 7 percent annual interest on its fixed deposit account, whereas…

A: Deposit = 5000   Standard Chartered Bank Annual Rate = 7% Time Period (N) = 8 years   UOB Bank…

Q: Deposits of Php 1500 each were made in a sinking fund at the end of each year. If the fund earned…

A: Deposit each month = 1500 End of year deposits Interest Rate = 6% Future Value after seventh deposit…

Q: What lump sum of money must be deposited into a bank account at present time so that $1,50 can be…

A: In this we have to calculate present value of cash flow withdrawal.

Q: Suppose an individual makes an initial investment of $2500 in an account that earns 7.8%. compounded…

A: Given information: Initial investment is $2,500 Interest rate is 7.8% Number of periods is 12 made…

Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: A sum of money is worth more now than it will be at a later time due to its potential for profits in…

Q: 10,000 was deposited in the bank every end of the year for 10 consecutive years. Then the sum of all…

A: In this we need to calculate the future value factor and find out the future value of sum.

Q: $15,000 is deposited for 7 years in an account earning 3% interest. (Round your answers to two…

A: Compound value of money can be defined as the amount of interest computed on interest earned…

Q: a. Calculate the future sum of P5,000, given that it will be held in the bank five years at an…

A: Note 1)It is a case where no sub-part is specified to solve among the multiple sub-parts posted, so…

Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 18,000$ is deposited for 9 years in an account earning 5% interest. Round answers to two decimal…

A: The future value of an amount deposited in the account is the value of the amount deposited on a…

Q: What is the total amount available upon the deposit of the sixth payment if P500.00 is invested at…

A: Here an amount of 500 is being deposited each year for 6 years and we have to find the total amount…

Q: $7000 are invested in a bank account at an interest rate of 5 percent per year. Find the amount in…

A: To find the amount after certain period we have to use the compound interest formula : A = P 1+r100n…

Q: Determine the value at the end of five years of a $7,000 investment (today) in a bank certificate of…

A: Future Value = Present Value * (1+rate)^n Where, Rate = 9%/2 = 0.045 n = no. of compounding period =…

Q: An initial investment of $480 earns interest for 7 years in an account that earns 13% interest,…

A: Future Value = Present Value * (1+r)^n where r =rate of interest per period i.e. 13%/4 = 3.25% n =…

Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Future value refers to the future worth of a present sum whereas the future value of an annuity is…

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:

A: Future value = Present value(1 + Rate)^Time

Q: If Php 1,000 becomes Php 1,811.36 after 5 years when invested at an unknown rate of interest…

A: Deposit amount = Php. 1000 Future value = Php. 1811.36 Period = 5 Years

Q: At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual…

A: Time value of money is a financial concept, where the current value of the funds is worth more than…

Q: (a) Complete the table below for an investment of N$25,000.00 in the bank for 5 years earning 8.5%…

A: Investment =N$25,000.00  years =5 Interest Rate = 8.5% To use compounding daily we have to divide…

Q: If 6000 dollars is invested in a bank account at an interest rate of 8 per cent per Find the amount…

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

Q: Determine the present value of the following cash flows; P4,000 at the end of 4th month and every…

A: Given information= P4000 at the end of 4th month and every month thereafter till the 12th Month…

Q: Your bank pays 4% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Future value of annuity due factor (r, n) = Future value of ordinary annuity factor (r, n) * (1+r) r…

Q: $100 is deposited in the bank and remains in the account for three years, earning 6% per year with…

A: Here, Initial Deposit Amount is $100 Interest Rate is 6% Interest Method is Simple Interest Method.

Q: What lump sum of money must be deposited into a bank account at present time so that $1,500 per…

A: Semi annual withdrawal = $ 1500 Period = 10 Years Number of withdrawals = 10*2 = 20 First withdrawal…

Q: Calculate the compounded interest after 7 years and 9 months if 500,000 is placed at an annual rate…

A: a) Amount invested (A) = 500,000 n = 7 years 9 months = 93 months r = 11.28% per annum = 0.94% per…

Q: A bank pays a stated annual interest rate of 8 percent. What is the effective annual rate using the…

A: In the given question we require to compute the effective annual rate if annual interest rate is 8%.

Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…

A: Present value (PV) is $39,000. The semi-annual rate (r) is 3% (6% / 2). The number of compounding…

Q: A principal of 7000 Rial is invested at rate 9% interest for 8 years. Determine the future value if…

A: In this question future value is to be find out. Future value is the value of an asset which grows…

Q: 18,000$ is deposited for 9 years in an account earning 5% interest. Round answers to two decimal…

A: Future Value  The future value is the worth of any asset or any sum of money at a future date when…

Q: The amount of $7,000 is invested in a certificate of deposit (CD) and will be worth $16,000 in nine…

A: Invested amount=$7000Worth in 9 years=$16000

Q: If an amount of $10,000 is deposited into a savings account at an annual interest rate of 4%,…

A: Here in this question we are required to calculate the compounded interest of investment after 8…

Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: promises to quadruple your investment over a period of 15 years based on semi-annual compounding.…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: A bank applies a semi-annually capitalized nominal rate of 11.8% for an investment. Calculate…

A: The effective rate for any period refers to the actual proportionate cost which will be paid for…

Q: Person A deposits $ 1,000 in a bank account at the beginning of each year for 15 years. If the…

A: Future Value(FV) is worth of current amount at future point that is computed by compounding current…

Q: What principal amount is equivalent to a withdrawal of 10,600 on the 2nd year,  4,000 on the 4th…

A: Let the principal amount = P Withdrawal in year 2 (W2) = 10600 W4 = 4000 Deposit in year 5 (D5) =…

Q: On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual…

A: 1. . 1 Future value  =Present value * (1+Interest rate)No. of years…

Q: How much must be deposited at 6% each year beginning on January 1, year 1, in order to accumulate…

A: This is the question related to compound interest and Future Amount. We use Principal , Interest and…

Q: Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year…

A: Account value at the end of 15 years (if interest is calculated only on principal amount) is…

Q: at Php2

A: Given information :

Q: For a sum of money interetsed at 4% compunded semi- annually for 5 years. a) nominal rate of…

A: a) Nominal rate of interest is the stated rate on the investment Nominal rate of interest “j” = 4%…

Q: Determine the value at the end of three years of a $10,000 investment (today) in a bank certificate…

A: The formula to calculate future value is given below:

Q: An amount of ₱234,000 is deposited in a bank paying an annual interest rate of 6.15%, compounded…

A: Solution:- Continuous compounding means that the interest is getting compounded every moment. Future…

Q: If $1,500 is deposited in a savings account at the beginning of each year for 20 years (a total…

A: The formula to compute future equivalent worth of present value:

Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…

A: Therefore, the future value if interest is compounded semiannually is $43,893.84.

Q: What is the accumulated value of periodic deposits of $3,000 made into an investment fund at the…

A: Information Provided: Periodic payment = $3000 Interest rate = 4.75% compounded semi-annually Years…