It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%. a. If the bank compounds interest annually, how much will you have in your account on January 1, 20x9? b. What will your January 1, 20x9 balance be if the bank uses quarterly compounding?

Q: You plan to borrow $1000 from a bank.  In exchange fro $1000 today, you promise to pay $1080 in one…

A: Given: The amount that is planned to borrow today is $ 1000 The amount that is to be paid after one…

Q: Suppose an investment will pay $19,000 in 16 years from now. If you can earn 10.15% interest…

A: Given information: Future value of investment is $19,000 Number of years is 16, Interest rate is…

Q: The procedure banks use to compute continuously compounded interest is similar to the process we…

A: Compound interest simply means the interest on interest. It is the extra interest received from the…

Q: Suppose an investment will pay $25,000 in 39 years from now. If you can earn 11.05% interest…

A: Calculate the present value as follows: Present value = Future value / (1+rate)^years.

Q: Imagine you want to earn $1000 in total after 3 years. The Bank A says that account earns 5%…

A: In simple interest, the rate of interest is applied on the principal amount only whereas in compound…

Q: Assume that you want to deposit an amount (BD120,000.00) into an account three years from now in…

A: Time Value of money: Money received today is worth more than money received later, according to the…

Q: Suppose you want to have $2,000,000 in 45 years. Calculate how much you need to deposit per nonth in…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Imagine you have $200 today and you think to save your money in a bank for 2 years. The Bank A says…

A: Interest rate is the rate which an investor may earn on the deposits in the banks or the investment…

Q: Solve each of the following questions using both pricing formulas and Excel.  1. If you wish to…

A: Present value refers to the current value of money which is required to put for a certain amount in…

Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…

A: A cash flow diagram is a representation of cash inflows and cash outflows over a specified period of…

Q: If you deposit in a bank $200 today, $250 a year from now, $150 in the second year and $300 in the…

A: Future value is the expected value of current sum in a future date at given interest rate.

Q: When you start your career, you decide to set aside $600 every month to deposit into an investment…

A: GIVEN, R=11% A=$600 N=25 M = 12 (MONTHLY COMPOUNDING)

Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: The following cash flow diagram indicates the yearly payments you will make in the future. Assume…

A: The Present Value of money: The value of a cash stream to be received or paid at some time in the…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$15,000…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Suppose you put $200 into a bank account at the annual interest rate of 7%.  *Round your answer to…

A: In this we have to find the future value of given value.

Q: Suppose you will save P 3,000 at the end of every three months in a bank that pays 3% compounded…

A: Future value is the value of an asset or a current asset at a future date based on an assumed rate…

Q: Assume that twenty years from now, you will need $50,000 and that your bank compounds interest at a…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: If you want to have $22,431 in fifteen years, how much do you need to deposit in a bank account…

A: The deposit required to be made today can be calculated as the present value

Q: Alfredo wants to know how much he must put in a bank account today to have within 14 years an amount…

A: As per the information provided: Future value of the invested amount = $20,000 Time = 14 years…

Q: If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much…

A: PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate  n= Number of period ) FV=…

Q: You want to accumulate $500,000 in a savings account in20 years. If the bank pays 6% compounded…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

Q: Solve the attachment

A: The amount to be paid at the end can be calculated by adding interest to the opening balance. The…

Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…

A: Future value of annuity due can be calculated by using this equation Future value of annuity due…

Q: If you put $850 in a bank today that pays (a) 13% interest per year, how much money could be…

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

Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…

A: Deposit = $4,000 Withdrawal after 2 years = $2,000 Remaining Withdrawal = 4 years   Interest Rate =…

Q: If you deposit BD1,500 now, BD3,600 three years, BD2000 seven years, and BD1,800 nine years from now…

A: Deposit now = 1500 Deposit in three years = 3600 Deposit in seven years = 2000 Deposit in nine years…

Q: If you want to have $22,327 in fifteen years, how much do you need to deposit in a bank account…

A: The deposit required today is calculated as the present value.

Q: How much will you have to save each year (to the nearest dollar)?

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

Q: How much money should be deposited today in an account that earns 7% compounded semiannually so that…

A: The amount of deposit required today is calculated as the present value.

Q: You plan to deposit $500 in a bank acoount now and $300 at the end of the year f the account eams S%…

A: The conceptual formula used:

Q: Solve the following problem. If P100,000.00 is invested in a bank at 4.5% simple interest annually,…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

Q: K Suppose you receive $500 at the end of each year for the next three years. a. If the interest rate…

A: Present value is the value right now of some amount of money in the future. Formula : PV = FV x…

Q: Suppose that each week, you deposit $43 into a savings account whose annual rate is 1.8% with weekly…

A: We need to use future value of annuity formula to calculate balance of account after 14 years. FV…

Q: You intend to accumulate RM5,713 in a bank savings account,4 years from now. How much savings must…

A: Future value = RM 5713 Period = 4 Years Annual interest rate = 10%

Q: You are depositing $3,000 today in an account with an expected rate of return of 10%. If you deposit…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: If you want to have $60,000 in 8 years, how much do you need to deposit in the bank today if the…

A: Here. Required Amount in 8 Years  (FV) is$60,000 Interest Rate (r) is 9% Time Period is 8 years

Q: If you want to withdraw $35,000 at the end of four years, how much should you deposit now in an…

A: Cash flow diagram is a graphical representation of cash flow series over a period of time. It shows…

Q: If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from…

A: Present Value- The present value of an investment or amount is its value today. It is the current…

Q: If you want to withdraw $20,000 at the end of two years and $55,000 at the end of four years, how…

A: Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based…

Q: Assume you just deposited $1,000 into a bank account. The current real interest rate is 2% and…

A: Given data; Deposit amount = $1000 real interest rate = 2% inflation rate = 6%

Q: If you deposit $3,000 in a bank account that pays 12% interest annually, how much will be in your…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You want to be able to withdraw $25,000 each year for 20 years. Your account earns 10% interest.…

A: Part A-C:Calculation of Amount in the Account, Total Money in the Account and Total Interest:A) The…

Q: Many people get ready for retirement by depositing money into a monthly or annual savings plan.…

A:

Q: How much would be in your savings account in 7 years after depositing $350 today if the bank pays 10…

A: To calculate the future value we will use the below formula   Future value = P*(1+r)t Where P -…

Q: Suppose you decide to save P3,000 per month for the next three years.  If you invest all of these…

A: Here, Equal amount at equal interval (A) = P3,000 per month Time period in years (n)= 3 years Rate…

Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…

A: The future value is the amount that will be received at the end of a certain period. In simple…

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.…