In this question the following formulae may be used: (1 + i)". – 1 FV = PMT- i PV = PMT!-(1+i)" i Ten years ago, Max's grandparents started an investment to help cover the costs of her university studies. At the end of each month, they deposited $200 into an account earning interest at a rate of 4.5% per annum, compounded monthly. After 4 years, the annual interest rate paid by the account dropped to 3.6% , compounded monthly, and Max's grandparents increased their monthly payment into the account to $300 . (a) Calculate the current balance of the account. (b) Max is now ready to begin her university studies. Her grandparents have stopped depositing into the account but the account continues to earn interest at an annual rate of 3.6% , compounded monthly. Max makes withdrawals of $600 per month. Calculate the number of withdrawals which Max is able to make.

In this question the following formulae may be used: (1 + i)". – 1 FV = PMT- i PV = PMT!-(1+i)" i Ten years ago, Max's grandparents started an investment to help cover the costs of her university studies. At the end of each month, they deposited $200 into an account earning interest at a rate of 4.5% per annum, compounded monthly. After 4 years, the annual interest rate paid by the account dropped to 3.6% , compounded monthly, and Max's grandparents increased their monthly payment into the account to $300 . (a) Calculate the current balance of the account. (b) Max is now ready to begin her university studies. Her grandparents have stopped depositing into the account but the account continues to earn interest at an annual rate of 3.6% , compounded monthly. Max makes withdrawals of $600 per month. Calculate the number of withdrawals which Max is able to make.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9PA: Mohammed LLC is a growing consulting firm. The following transactions take place during the current...

See similar textbooks

Similar questions

Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.
Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On November 6, Pickles borrows $820,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in six months from November 6, and annual interest rate of 3%. B. On December 12, Pickles borrows an additional $200,000 with payment due in three months from December 12, and an annual interest rate of 10%. C. Pickles pays its accounts in full on March 12, for the December 12 loan, and on May 6 for the November 6 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Pickles.
Give typing answer with explanation and conclusion to all parts Scott opened an RRSP account and deposited $1,500 into it. She then deposited $1,000 at the end of the 1st year and $775 at the end of the 2nd year, into the account. The RRSP was earning 2.30% compounded quarterly. a. What is the accumulated value of the investments at the end of the 2nd year? Round to the nearest cent b. What is the accumulated value of the investment at the end of 6 years? Round to the nearest cent
Using the image attached answer 3, and 4 below. 3) Isaac invested $77.000 in an account paying an interest rate of 4.6% compounded quarterly. Assuming no deposits or withdrawals are made, how much money, to the nearest cent. would be inthe account after 12 years? 4) Evan is going to invest in an account paying an interest rate of 5.4% campounded annually. How much would Evan need to invest, to the nearest dollar, for the value of the account to reach $1,360 in 5 vears.
PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 3.-Carmen Arámbula received her paycheck on August 15 for $23,450.00, and decided to invest it immediately, with a 60-day term, at the end she received $23,918.35. At what annualized interest rate did she invest it? Take the actual year. Note:In the image, this is the original exercise, it is in Spanish, but it is easy to understand. Very important Note:It is necessary that you make a solution approach and then the result. Above all, to check the procedure and/or the formulas used, especially when you use excel.
Janelle was offered by Bank C, 5% compounded monthly whereas, Bank D offered 4% compounded quarterly for the same investment. In which bank should she invest her money? Show solution
Amy opened an RRSP account and deposited $1,000 into it. She then deposited $600 at the end of the 1st year and $625 at the end of the 2nd year, into the account. The RRSP was earning 2.20% compounded quarterly.a. What is the accumulated value of the investments at the end of the 2nd year?rounded to two decimal placesb. What is the accumulated value of the investment at the end of 8 years? small telecommunications company invested its 2010 net income of $561,400 in a savings account for 4 years and 4 months. Money was earning interest at a rate of 7.25% compounded monthly.a. Calculate the amount it would have in this account at the end of the period.rounded to two decimal placesb. Calculate the interest earned.rounded to two decimal places
Answer the Promblem correctly show your Solution. My cousin , Hershey , is a newlywed public school teacher who plans for the education of her future children . Initially , at the beginning of each month , 10 000.00 Php was deposited for 8 years in a bank in Orani . At the end of the month , the investment collects 9% of annual interest and is compounded monthly . After the last deposit , how much is in the account ? (I just need the Solution) Answer: After the last deposit, Hershey's account has 1 398 561.64 Php
Joseph used the Quantitative Reasoning Procees to create a plan to pay off his student loans of $7,680. The interest rate on his loan is 2.9% annually and he plans to make monthly payments of $73.80 for 10 years. Complete months 1 and 2 of the amortization table below. How much of Joseph's payment goes to Interest in Month 2? Month Beginning Balance Payment: To Interest Payment: To Principal Ending Balance 1 2 ?? 3 (Round your FINAL answer to the nearest cent.) $
Belle decided to start a new investment account. She deposits $1,000 into an account that earns 3.5% interest, compounded quarterly for 10 years. How much more would she have earned, in interest, if she invested the same amount into an account earning 3.8% interest, compounded monthly, for the same number of years? a $44.50 b $350 c $1,416.91 d 1,461.41
Clare Jarrett has just closed a business loan of $400 000 to assist with the purchase of equipmentand fixtures for her small business. The loan will be repaid in five (5) equal annual end-of-yearinstallments and the institution has agreed to lend at a rate of 8% compounded annually. As partof her business’ detailed financial planning, she wishes to determine the annual interest paymentsattributable to the loan.Required:A. Determine the business yearly payment on a $400 000 loan. B. Prepare an amortization schedule for this loan. C. What is the loan balance at the end of year 3?D. How much interest expense will Ms. Jarrett pay over the life of the loan? E. What is the effective rate of interest on the loan if interest is compounded quarterly?
Sandy Kupchack just graduated from State University with a bachelor’s degree in history. During her four years atthe university, Sandy accumulated $12,000 in student loans. She asks for your help in determining the amount ofthe quarterly loan payment. She tells you that the loan must be paid back in five years and that the annual interestrate is 8%. Payments begin in three months.Required:Determine Sandy’s quarterly loan payment.