John opens a savings account and decides to deposit $10 each month. Let x represent the number of months that he has been saving, and y represent the total amount of money saved. What is the algebraic equation for John's saving plan? How much money will John have saved in 14 months? In 6 months? Show your work and explain. In how many months will John have saved $100? $175? Show your work and explain.

John opens a savings account and decides to deposit $10 each month. Let x represent the number of months that he has been saving, and y represent the total amount of money saved. What is the algebraic equation for John's saving plan? How much money will John have saved in 14 months? In 6 months? Show your work and explain. In how many months will John have saved $100? $175? Show your work and explain.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

See similar textbooks

Similar questions

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
a) Anu wants to put aside an amount at the beginning of each month while working for the next 5 years (60 months). At the end of 60 months, she wants to start a business and she plans to have a budget for it of at least $50,000. How much should she put aside each month if interest payable on her savings is 0.125% per month? [Hint: think about a Geometric Sequence (GP).] (Give your answer to 2 decimal places.) b) Suppose that the sum of $100 is invested at an annual rate of interest of 10%. Calculate the value of the investment in 5 years’ time if the interest is compounded (i) weekly and (ii) semi-annually Show all your calculations. (Give your answer to 2 decimal places.)
How much did Shawn deposit every month in his savings account if he had $7,000 after 21 month-end deposits? The money in his savings account was growing at 2.62% compounded monthly. Showing me how to do it on Excel would be appreciated as well :)
Stuart Daniels estimates that he will need $24,000 to set up a small business in 8 years. (a) How much (in $) must Stuart invest now at 8% interest compounded quarterly to achieve his goal? $ (b) How much compound interest (in $) will he earn on the investment?
A professional photographer wants to have $15,000 in three years to refurbish her studio. How much money must she deposit at the beginning of each month into an account that earns 4% annual interest compounded monthly to reach her goal? (Round your answer to the nearest cent.)
Jamil invested $9,500 in an account he expects will earn 5% annually. Approximately how many years will it take for the account to double in value? (Round the number of years to the nearest whole number.) Group of answer choices 8 9 10 11 14
Paul opens a savings account today and deposits $1,000 now. He is certain that he will be able to deposit $1,000 per month in this account, starting in a month. If he does it for 12 consecutive months, given that this account pays interest of 0.5% a month, how much will he have at the end of the 12th month?
Claudia intends to accumulate $35,000, so 6 months earlier she opens an account with $7,500, earning interest at 6.63% simple annual interest. 2 months later she deposits another $10,300. How much should she deposit 3 months after opening the account to achieve her goal?
Hassan invested $4000 into an account four years ago. Today his account has grown to have a balance of $4827.50. Given that his account offered monthly compounding of interest, what is the APR on this account? give the answer in %?
You plan to buy a new car in three years and begin depositing $250 per month into a savings account that earns 4.5% annual interest, compounded monthly. After three years of deposits, how much money is in the account? What would you need to enter in Excel to help you answer this question?
Joe wants to have $10,000 in 10 years after investing in an account that earns 3.6% compounded monthly. How much does he need to invest?
James Smith is a financial adviser at a reputable financial institution in Jamaica. He was the keynote speaker on financial management at a recent conference and was asked questions on the time value of money. James is asking you to provide the answers to the following questions asked by the attendees at the conference. Sandra is currently saving $1,250 each month at 12% per annum. How much money will be in her account at the end of 5 years? 2. How much money should Anny invest today, so that she will have $10,500 in her bank account in four years’ time, assuming that the interest rate is 5% compounded annually? 3. A typical credit card agreement quotes an interest rate of 15% per annum. Monthly payments are required. Calculate the actual interest rate that will be paid on such a credit card (i.e. EAR)?