If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded annually, how much will you have after 6 years of saving? Oa $310,058 b. $324,658 O c. $25,838 d. $405,479 O e. S376,740

If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded annually, how much will you have after 6 years of saving? Oa $310,058 b. $324,658 O c. $25,838 d. $405,479 O e. S376,740

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: A personal account earmarked as a retirement supplement contains $242,100. Suppose $200,000 is used…

A: Annuity is the regular deposit of payments in saving account, for mortgage payments, for insurance…

Q: A personal account earmarked as a retirement supplement contains $242,400. Suppose $200,000 is used…

A: You have asked multiple unrelated questions. They are not sub parts. Hence, only the first question…

Q: How much do you have to deposit now in your savings account that earns a 6% compound annual interest…

A: pv=fv1+rn pv=present value fv=future value r=rate of interest n=number of years

Q: client deposits $5 million in a savings account that pays 5 percent per year compounded quarterly.…

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

Q: How much should be deposited deposited in a bank paying 1.15% compounded semi – annually to…

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used…

A: Annuity refers to the series of payment in equal interval of time for certain time period. For…

Q: . Your client deposits $5 million in a savings account that pays 5 percent per year compounded…

A: Following is the answer to the question

Q: The Banco de Oro (BDO) offers an annual interest of 8% to every P255,000 savings and is compounded…

A: Time (t) Principal (P) Interest Rate Compound Interest Maturity Value answer 5 255000…

Q: You deposit $10,000 in an account that pays 4.5% interest compounded quarterly. Find the future…

Q: "If a single deposit of $500,000 is made today, earning 8% interest, compounded QUARTERLY, how much…

A: In the given question, $ 500,000 are invested at 8% compounded quarterly for 10 years. Since…

Q: How much of the financial goal comes from deposits and how much comes from interest?

A: Number of periods = 3 * 12 = 36 Monthly rate = 7.5% / 12 = 0.625% Future value = Annuity * [(1 +…

Q: You deposit $175,000 in a savings account. The APR (Annual Percentage Rate) is 6%. Calculate the…

A: Effective Annual Rate(EAR) shows net rate which an investment will yield after considering…

Q: If you need $40,000 five years from determine the minimum amount of money you need to deposit into…

A: Working note:

Q: If you make monthly deposits of $497.00 into an ordinary annuity earning 3.09% compounded monthly,…

A: An annuity is a series of equivalent periodic cash flows for a specific duration. In the case of an…

Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Number of period is 4 (2 x 2).

Q: If $235,000 is deposited now, how much annuity at the end of each year can a person get annually…

A: Deposit amount (D) = $235000 n = 3.5 years r = 8% Let annuity at the end of each year = A

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

Q: 1. It is now January 1, 2018. You will deposit $1,000 today into a savings account that pays 8…

A: Answer 1: Information Provided: Deposit = $1000 Interest Rate = 8%

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: Calculation of the number of quarters until the balance of the account is $0 is as follows: Hence,…

Q: If you deposit RM35,000 in an account earning 18% with monthly compounding, how much would you have…

A: Using the future value function

Q: If $35000 is put in a savings account paying interest of 5% compounded annually, what amount will be…

A: The future value of the invested amount is determined after compounded the interest accrued with the…

Q: If for the next 30 years you place OMR 3,610 in equal annual year-end-deposits into an account…

A: Future value of annual year end deposits is calculated by future value of ordinary annuity formula.…

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: Present Value is referred to as the current value of future sum of the funds or the cash flows…

Q: if P20,879 is deposited each year for 8 years at an interest rate of 10.257% compounded bi-monthly,…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: If you wish to accumulate $205,000 in 6 years, how much must you deposit today in an account that…

A: Future value (FV) = $205,000 Interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25% Period =…

Q: Your bank pays 8% interest, compounded annually. Use the appropriate formula to find how much you…

A: Given, Interest rate (r) =8% Annuity payment (A) = $700 Time (n) = 8

Q: JP just made a deposit of $4,321 is made today in an account earning 5.3% APR compounded annually.…

A: Data given: P=Deposit amount = $4,321 r=Rate = 5.3% APR compounded annually n= 15 years Required:…

Q: A person deposits $150 per month into a savings account for 2 years. If $75 is withdrawn in months 4…

A: Cash is considered as one of the most important and valuable factors of the business, without which…

Q: A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used…

A: We use NPER function to calculate no of quarters

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: Let the required annuity be = n quarters To make the account 0 at the end of the annuity period, the…

Q: You deposit $1,500.00 in an account earning 8.46% interest compounded weekly. How much will you have…

A: It is abbreviated as FV or “Future Value, is the expected amount during the closure at a point in…

Q: You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded…

A: Deposit amount (PV) = $ 1000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…

Q: Answer the subquestions below: a. Mr. Formento pays at the end of every month for a loan that…

Q: If you borrow $3,600 to buy a car at 15% per year compounded monthly, to be repaid over the next…

A: Monthly Payment = P x r / [1 - {1 / (1 + r)^n}] Here, P = Present Value or Loan Amount i.e. $3600 r…

Q: Lidia deposits $800 at the END of each year for 8 years in a savings account. The account pays 12%…

A: Future value is the value of an asset in the future over the years. It can be calculated as…

Q: If you deposit #9989 into an account paying 3.6% annual interest compounded monthly, how much money…

A: The importance of future value: Future value is a crucial estimate since it informs investors and…

Q: A personal account earmarked as a retirement supplement contains $342,400. Suppose $300,000 is used…

A: Given data; annuity = $300,000 interest rate = 6% compounded quarterly payment amount = $6500…

Q: Suppose you borrowed $35,000 at a rate of 8.1% and must repay it in 4 equal installments at the end…

A: Loan amount (LV) = $35000 Interest rate (i) = 8.1% Number of annual payments (n) = 4

Q: Assume that you borrow 50,000 JPY under the system of 5% yearly compound interest. (1) If you repay…

A: Equal Loan installment is that under which we will pay the equal installment every year which…

Q: You plan to withdraw the amounts given below over the next five years from a savings account that…

A: GIVEN, R=9% YEAR CASHFLOW 1 0 2 24000 3 14000 4 26000 5.00 42000

Q: a. How much money will you have saved after 2 years? b. How much will be owed after 2 years?

A: Information Provided: Present value = $2000 Interest rate = 7.5% compounded semi-annually

Q: Calculate the future worth of 20 annual $4,000 deposits in a savings accountthat earns 8% compounded…

A: The future value of periodic investment consist of principal payments and interest accumulated on…

Q: If you deposit 100 OMR into your savings account at the beginning of each year over a 12-year…

A: The future value of annuity due refers to the future value of a series of payments. The future value…

Q: A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: The accumulated amount that you will receive after 52 months if you deposit R7 300 into an amount…

A: Interest is a value which is received on deposited amount for the period. It increases the value of…

Q: A personal account earmarked as a retirement supplement contains $342,200. Suppose $300,000 is used…

A: Given data; Payment amount = $5500 annuity amount = $300,000 annual interest rate = 5% As the…

Q: A savings account pays 5% annual interest. Calculate the amount in the savings account if you invest…

A: FV = PV (1 + r)n where, FV = Future ValuePV = Present Value,r = annual rate of interestn =…

Q: You put $1,000 into a savings account today that offers a 5% APR with semi-annual compounding (i.e.,…

A: Effective annualized rate informs the rate effectively (considering the impact of compounding…

Question

solve it correctly and not use excel.

If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate
compounded annually, how much will you have ater 6 years of saving?
a. $310,058
O b. $324,658
Oc. $25,838
Od. $405,479
Oe. S376,740
EN

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

Introduction

VIEW

Computation

VIEW

Conclusion

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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, finance and related others by exploring similar questions and additional content below.

Similar questions

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
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?
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.
Calculating 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 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
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 $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?