If you invest $2,000 every year in an account that pays 7% APR, compounded daily, how much will you have in the account at the end of 17 years? Assume you make the first deposit exactly one year from now, and you make a total of 17 deposits".

If you invest $2,000 every year in an account that pays 7% APR, compounded daily, how much will you have in the account at the end of 17 years? Assume you make the first deposit exactly one year from now, and you make a total of 17 deposits".

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Laura wants to accumulate P150,000 in her bank account by depositing P1000 at the beginning of each…

A: This question is based on Annuities due, Annuities due are annuities that require payments to be…

Q: Juan is 25 years old today. A year from now (i.e., on his 26th birthday) he will deposit $7,000 in a…

A: Compound interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: A young couple planning for their future is considering purchasing a franchise for pizza business.…

A: Franchise refers to the goods and services under a franchisor. It helps in establishing the…

Q: If the simple interest on a sum of money for 3 years at 5% per annum is P2,500, what is the compound…

A: We have, Principal = p Time = 3 years Rate of Interest = 5% Formula of SIMPLE INTEREST (SI)…

Q: Determine the final value if you invest P30,694 into a certificate of deposit that has an annual…

A: Given :Number of Years (n) =5Rate of Interest (r(4)) =8.1%Present Value (PV) = $30694

Q: A house and lot can be acquired by a downpayment of P520,000 and a yearly payment of P100,500 at the…

A: Given down payment = 520000 P Yearly payment = 100,500 P Time = 10 years Interest rate = 8 %

Q: John plans to make 10 equal annual deposits starting one year from now into a fund that pays an…

A: Let the John annual deposit starting one year from now is A i =10% The cashflow diagram is shown…

Q: A car was bought on installment basis with a monthly installment of Php10,000 for 60 months. If…

A: Given, Monthly Installment = Php 10,000 Time (n) = 60 months Rate (R)= 12% Monthly interest…

Q: our rich uncle has just offered you to make you wealthy! For every amount you save in an insured…

A: An interest rate is offered per annum by the banks on each deposit made in the bank, which gets…

Q: An amortization of a debt is in a form of a gradient series of P5,000 on the first year, P4,500 on…

A: In the given cash flow P1=5000, P2=4500, P3=4000, and P4=3500 Therefore uniform gradient amount…

Q: Jason makes 20 semi-annual deposits of P15,000 each in a savings account paying 6% compounded…

A: Introduction: Compound interest (or accumulating interest) is the interest on credit or store…

Q: Your grandfather deposits $50,000 into your savings account that pays 6% interest compounded…

A: Solution: Option a) is Correct $3,068 Deposit amount (Present value) = $50,000 Interest rate = 6%…

Q: A self employed individual, Jimmy Carpenter, is opening a retirement account at a bank. His goal is…

A: A income series that will increase or drops by a continuing quantity every amount is thought as…

Q: An engineer wishes to set up a special fund by making uniform semiannual start-of-period (period 0)…

A: *Answer:

Q: Find the total amount after the investment period in semi-annual payments of 1000 pesos if the first…

A: In economics, the present value refers to the current value of a future stream of cash flow. Future…

Q: 28) Find the equivalent of present worth (t = 0) of a uniform series of $7000 for 7 years, if the…

A: Note: We will answer the first question since the exact one was not specified. Please submit a new…

Q: How much money would you have to deposit for 20 consecutive periods starting 1 year from now if you…

A: Money is the value that is used to buy or sell goods and services in an economy. Money is supplied…

Q: An amount of P1,384 is to be paid indefinitely at the rate of 4.71% How much is the present worth?

A: The special type of annuity which has infinite mature period is termed as perpetuity. In this, there…

Q: A house and lot can be acquired by a down payment of P500,000 and a yearly payment of P100,000 at…

A: Answer Down payment = P 500000 Annual payment = P 100000 Number of annual payments = 10 Discount…

Q: How long will it take for P1,000.00 to amount to P1,346.00 if invested at 6% compounded quarterly?

A: According to the formula of compound interest rate we get: A=P(1+rn)nt Here A=P1,346.00 P=P1,000.00…

Q: Refer to the accompanying cash-flow diagram (see Figure), and solve for the unknown quantity in If F…

A: Future value(FV) is the value of an asset(A) after 6 years in this question. The future value(FV)…

Q: posits 95,000 pesos every year end in an investment which pays a nominal annual rate of 7.65%…

A: Given Information

Q: A person deposited P1,000 in a 2% account compounded continuously. In a second account, he deposited…

A: Given Information A1 = 1,000e0.02t A2 = 500e0.08t If A1 = A2 Then, 1,000e0.02t = 500e0.08t 2= e0.08t…

Q: The optical products division of Panasonic is planning a $3.5 million building expansion for…

A: Future worth of investment = 3.5 Millin $ Interest rate = 16 % compounded quarterly Quarterly rate =…

Q: Lilly deposits $800 every month into an account that earns 5% annual interest where interest is…

A: We can calculate the amount at the end of 4 years semi-annually with the help of the following…

Q: What is the effective interest rate per 6 months for a nominal interest rate of 12% per year…

A: here we calculate the present worth and effective interest rate by using the given details , so…

Q: Suppose that a man lends P50,000 for four years at 12% per year simple interest. At the end of the…

A: Given that, Initial money (p) = 50,000 Time period (n) = 4 years Simple interest rate (r) = 12%

Q: Aurora wants to give her daughter Mara a financial gift on the latter’s college graduation two years…

Q: If you want to triple your money at an interest rate of 6% per year compounded annually, for how…

A: Future worth can be calculated as follows: F=P1+in3P=P1+0.6n3=1.06n

Q: If you invest $3,570 three years from now, how much will be in the account 15 years from now if i =…

A: Here we calculate the amount after 15 year from now by using the given information and choose the…

Q: Assume that 25 years ago your dad invested $300,000, plus $34,000 in years 2 through 5, and $49,000…

A: Given; Amount invested= $300000 Amount invested from 2 year to 5 years= $34000 Amount invested from…

Q: deposits 95,000 pesos every year end in an investment which pays a nominal annual rate of 7.65%…

A: Amount invested each year = 95000 Time = 13 years Interest rate = 7.65 % compounded continuously

Q: What will be the amount after 4.75 years if P3, 600 will be deposited at the end of each quarter…

A: In the question above, it is given that : Time period = 4.75 years Principal Amount = P 3600 Rate…

Q: A man wishes to accumulate P3,733 after 5 years, 8 months and 28 days. How much should be deposited…

A: Given: The accumulated amount is = P3,733 Years = 5, 8 months, and 28 days The interest rate is =…

Q: An amortization of a debt is in a form of a gradient series of P5,000 on the first year, P4,500 on…

A: Given: Gradient series: 1st year=P5000 2nd year=P4500 3rd year=P4000 4th year=P3500 Interest rate=5%

Q: Calculate the present worth of a geometric gradient series with a cash flow of 60,000 pesos in year…

A: *SOLUTION :-

Q: 6. Interest of P1,904 was charged on a loan of P6, 800 for 4 years. What simple annual rate of…

A: We have, (P) Principal = P 6800 (S.I) Interest = P 1904 (T) Time = 4 years We need to calculate (R)…

Q: If your goal was to have the largest amount of money in your bank account in two years, which of the…

A: The individual has to invest a certain amount for a period of two, which of the following will give…

Q: Php.15, 000.00 is deposited in a savings account that offers continuous compounding. Determine the…

A: Continuous compounding is the concept where the Compound-Interest for a principal is compounded to…

Q: .A man wishes to provide a fund for his retirement such that from his 60th to 70th birthdays he will…

A: Compound interest is the interest on an advance or store determined in light of both the underlying…

Q: Three months ago, Jim purchased $11,000 of U.S. Treasury bonds. These bonds have a 30-year maturity…

A: by using the present value method we calculate the current value of bond by using the given…

Q: A certain amount is borrowed for 72 days at 17% per annum. Using exact interest, what is that…

A: Given, Time- 72 days ROI- 17% Due amount- 7238

Q: What payment ten years from now is equivalent to P1,000 six years from now if the interest rate in…

A: Let P is the unknown amount 10 year from now. A. Compounded Annually. P/(1+0.15)10 = 1000/(1+0.15)6…

Q: Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12…

A: The formula is: FV=(1+r)*A[(1+r)n-1r] Where,FV = Future Value A = Regular depositn = Number of…

Q: PART C.) In planning for your retirement, you expect to save $5,000 in year 1, $6,000 in year 2, and…

A: * SOLUTION :-

Q: invested a hundred thousand pesos in an account now. After eight years, she withdraws the principal.…

A: Investment Amount = 100,000

Q: Deposits of P35,000.00, P48,000.00 and P25,000.00 were made in a savings account eight years, five…

A: Given P1=P35000 , started at 8 year so T=8 P2=P48000 , started at 5 year so T=5 P3=P25000 ,…

Q: Suppose that the parents of a young child decide to make regular annual deposits into a savings…

A: Cash flow diagram is picturized depiction of cash inflows and outflow in any given point of time .…

Q: A brand new cellphone is worth P16,000 if paid in cash. If I pay 5,000 at the end of 1st month and…

A: Third month payment can be calculated by using the following formula.

Q: A coffee maker set is offered for sale for P 15 000 down payment and P 1 500 every 3 months for the…

A: Down payment = P15000 Reoccurring payment = P1500 Time period = every 3 months for 15 months…

Question

"If you invest $2,000 every year in an account that
pays 7% APR, compounded daily, how much will
you have in the account at the end of 17 years?
Assume you make the first deposit exactly one
year from now, and you make a total of 17
deposits."
Show all work.

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 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, economics and related others by exploring similar questions and additional content below.

Similar questions

: Suppose you make “N” equal annual deposits of $ 1000 each into a bank account paying 10% interest per year. The first deposit will be made one year from today. How much money can be withdrawn from this bank account immediately after the Nth deposit?
Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12 payments are made into the account, How much would be accumulated in this fund by the end of the 12th year? The first payment occurs at time zero (now)
1. If you borrow money from your friend with simple interest of 12%. Find the present worth of 20,000 which is due at the end of nine months? 2. A Loan of 10,000 is made for a period of (m) months at simple interest of 20%. If the future amount is due at the end of the load period is 4,166. Determine the (m) ? 3. The investmest made by John proved most remunerative. His 1,000,000 savings doubled at 2% per 6 months after (n) years. Determine the (n) ? 4. An investors holds a time payment purchase contact on some machine tools. The contact calls for the payments of 6,800 at the end of each month a 5 years period. The 1st payment is due in one month. He offers to sell you the contact for 330,680 cash today. If you otherwise can make 1% per month on your money, would you accept or reject the investors office?
A father is saving money 5 years before his son will be going to college. Upon opening he deposited 7,000Pesos to an account that has 4% interest compounded annually. After a year he deposited 11,000Pesos, then on the second and third year he puts 13,000Pesos and 4,000Pesos respectively. If after 5 years they withdrew the account how much would they receive? * 40,335 Pesos 34,333 Pesos 30,333 Pesos 45,345 Pesos
You set aside Php2,500 from your salary and deposit it at the end of each monthin a prime savings account that yields 2.5% compounded monthly. If you continuedoing this regularly, how much will be in your savings account at the end of twoand a half years?
What is the value of an investment of Php 3,500 after 2 years if it earns 1.5% compounded quarterly?
Your sister needs money and comes to you with a deal. She asks you to pay $2,000 at the end the first year, then increasing by $500 every year til the 20th year. Then, for the next 20 years, she will pay you back twice the amount you paid for each of your annual payments, starting the next year right after you pay your last payment. Thus, you receive $4,000 at the end of year 21 and $5,000 at the end of next year and so on. Your sister claims it is beneficial for you to accept this deal since you are getting back twice the amount you let her borrow. Draw the Cash Flow Diagram What is the interest rate that makes you just indifferent between accepting or rejecting her deal? Assume your 1) your TVOM is 5%, 2) you decided to lend the amount asked by your sister. How many times of your original payment should you ask her for (Currently she's giving you back double the amount you paid) if you want to earn $25,000 profit now? First calculate the present worth of the given cash flow at time…
A housewife bought a brand new washing machine costing Php 15,000 if paid in cash. However, she can purchase it on installment basis to be paid within 8 years. If money is worth 8.68 % compounded annually, what is her yearly amortization if all payments are to be made at the beginning of each year? Round your answer to 2 decimal places
What interest rate compounded monthly is equivalent to 10% effective rate? I have clarifications about this problem, I asked it once and you given me r=9.5690%, which makes sense because the r variable is the one we are finding using this formula: EAR=((1+rn)^n)−1, but when I search to google the answer r=10.47% which also makes sense because they are using r=((1+i/n)^n)-1, which one is more accurate? thank you
A payment stream consists of three payments: $1,900 due today, $2,400 due 80 days from today, and $2,900 due 180 days from today. What single payment, 70 days from today, is economically equivalent to the payment stream if money can be invested at a rate of 4.4%? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.) Single payment $
What is the present worth of these futurepayments? (a) $25,500 eight years from now at 12% com-pounded annually. (b) $58,000 twelve years from now at 4% com-pounded annually. (c) $25,000 nine years from now at 6% compoundedannually.(d) $35,000 four years from now at 9% compoundedannually.
Hale College predicts that in 18 years it will take $200,000 to attend the college for years. Emma has a substantial amount of cash and wishes to invest a lump sum of money for her child college fund. How much should Emma put aside in an account with an APR of 9% compounded monthly in order to have $200,000 in the account in 18 years? Round your answer to the nearest cent, if necessary.