Suppose two $100 withdrawals are made, the first in 2022 and the second in 2026, emptying an account that earns 5% interest, compounded annually. What amount was deposited when the account was originally opened in 2020?
Q: It is now January 1, 2018, and you will need $1,000 on January 1, 2022, in 4 years. Your bank…
A: According to the present and future value annuity, the regular periodic payments would be asking…
Q: The company is going to invest P26,000, P34,000, P46,000, and P54,000 respectively into a savings…
A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: What is the future value on December 31, 2024, of 6 annual cash flows of $50,000 with the first cash…
A: Future Value = C*(1+r)n, where C is the current cash flow, r is the periodic rate of interest and n…
Q: You invested $10,000 on February 8, 2021, in an account that pays 4% compounded monthly. If simple…
A: In case of partial period calculation and when compounding monthly, number of complete months taken…
Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…
A: Given, Amount (A) = P8,000 Principal (P) = ? Interest rate (i) = 12% Number of times compounded (n)…
Q: 800
A: Formula to calculate the future value of ordinary annuity is: FV = C*[(1+I)^n - 1/i] Where C is the…
Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals? A…
A: a) Working note:
Q: Beginning December 31, 2018, Stanley wants to make ten equal, annual withdrawals from an investment…
A: Since the withdrawal will be made at the end of each year, therefore, it is an annuity and formula…
Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…
A: The Future Value of annuity is the total value of all the payments which occurred regularly at a…
Q: What deposit made at the beginning of each month will accumulate to P120,000 at 8% compounded…
A: Let the monthly deposit = M Accumulated value = P 120000 Interest rate = 8% semiannually compounded…
Q: How much money should be on the account today in order for annually withdrawals of $100.00 to be…
A: Here we will use the concept of time value of money. As per the concept of time value of money the…
Q: An annuity pays $300 each on January 1 in the Year 2025, 2030, 2035, 2040 and 2045. The annual…
A: The sum of all succeeding, equal payments or deposits made at some point in the future represents…
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: Five deposits are made at the EOYS of years 2021-2025, as shown in the CF table above. If the…
A: Interest Rate = 6% Time Period = 10 Years
Q: At a return rate of 20% per year, the amount of money you must deposit for five consecutive years…
A: Given Information : Return rate - 20% per year Future value of the amount deposited - $50,000
Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…
A: The current worth of the cash flows or an asset after discounting is termed as the present value.
Q: Mr. Zigong wishes to know about the future values of the single cash flow deposited today that will…
A: The value of a cash flow deposited today and to be received in the future can be calculated using…
Q: What lump-sum amount of interest will be paid on a $10,000 loan that was made on August 1, 2012, and…
A: Principal (P)= $10,000 Rate (R)= 10% per year Time(T)= 4 years and 3months We have to calculate…
Q: You plan on withdrawing monthly payments for the next ten years and have deposited $100,000 inan…
A: Let's assume that the value of the monthly withdrawals be an amount A.Interest rate = 8% per annum…
Q: A sum of P1,000.00 is invested now and left for eight years, at which time the principal is…
A: The amount of withdrawal at the end of the 16th year will include the interest plus the…
Q: If you deposit RM15,000 in an account earning 20% with semi annually compounding, how much would you…
A: Compounding is a way to find the FV of a deposited amount by considering the appropriate rate for…
Q: How much should be deposited now at 7 percent compounded annually to make possible withdrawals of…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: How much money must be deposited at the end of each quarter if the objective is to accumulate…
A: Working note:
Q: What will be the future value on December 31, 2023, of 5 annual $60,000 deposits starting on…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest…
A: Future value can be determined by compounding the present value.
Q: A sum of P1,000 is invested now and left for 8 years, at which time the principal is withdrawn. The…
A:
Q: If you deposit RM25,000 in an account earning an interest of 15% per annum, much would you have in…
A: Given: Present value = RM25000 Interest rate = 15% per annum Time period = 10 years To compute the…
Q: You want to borrow $100,000 for five years when the interest rate is 5%. You will make yearly…
A: Given: Interest rate = 5% Loan = 100,000 Cash payment $23,097.48 $23,097.48 $23,097.48…
Q: Gary King will deposit $27500 into an account today that earns 13% per year compounded annually.…
A: Given information: Principle amount = $27,500 Rate of interest = 13% Period = 5 years
Q: On each December 31, you plan to transfer $2,000 from your checking account into an…
A: Future value: It refers to the sum of money that will be received by the investor in the future by…
Q: A person wants to be able to make monthly $500 withdrawals. If the first withdrawals is on April 1,…
A: Annuity due are the payments which are done in beginning of each month.
Q: Click to see additional instructions Starting on January 1, 2022, you put $1200 every year into an…
A: Answer: Calculation of the accumulated money you will have in the account on December 31, 2026:…
Q: How much do you need to deposit on April 1, 2019, so that you can make a series of monthly…
A: Amount of monthly withdrawal(A)=$500 No. of withdrawals (n)=60 Rate per period (i)=0.0083
Q: It is now January 1, 2018, and you will need $1,000 on January 1,2022, in 4 years. Your bank…
A: a) Face Value=1000Number Of Years=4rate=8%Present Value Of Amount to be Deposit Today…
Q: Another client at ZBX Fin Planning currently has $95,000 in their retirement account that is…
A: Current Amount in account is $95,000 Deposits per month is $950 Interest rate is 10.56% APR…
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…
A: I/Y = rate = 6.2%/2 = 3.1% NPER = Number of years = 13*2 = 26 PV = Present value = 0 FV = future…
Q: Compute how much shall the investor collect at the end of 13 years
A: Future value: It is the future worth of the present amount or cashflows, compounded over a period…
Q: What amount must be deposited today, if, starting one year from today, you wish to make 15 equal…
A: Given, annual withdrawals $3,450. Number of payments 15. Interest rate is 0%.
Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…
A: We need to use future value of annuity formula to calculate annuity amount after 5 years. Future…
Q: What is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: What single amount on April 1, 2019, is equivalent to a series of equal, semiannual cash flows of…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: A person wants to be able to make monthly $500 withdrawals. If the first withdrawals is on April 1,…
A: Present value of annuity due is the present value of the payments which are done in beginning of…
Q: If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Compute the amount of money to be set aside today to ensure a future value of $1,400 in one year if…
A: Present value is the value of an asset in today’s term. In other words it is the amount of money…
Q: 1- How much money should you be willing to pay now for a guaranteed $600 per year for 8 years…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: If you deposit $2000 in an account that pays 3.6% with quarterly compounding, what is the balance…
A: given, pv = $2000 r = 3.6% m =4 n= 6
Q: If you had deposited $1 in a bank account at an annual rate of 3.5%, at the beginning of 1905. How…
A: I/Y = Interest rate = 3.5% PV = Present value = 1 NPER = Number of periods = 2019 to 1905 = 115 CPT,…
Amount withdrawn $100.
Rate 5%.
Step by step
Solved in 2 steps
- Suppose that an account was opened with a $988 deposit at the beginning of 2030 and that there were no additional deposits. At a 9.2% annual interest rate, it would be possible to accumulate $2,876 by no sooner than the end of what year?which one is correct please confirm? Q1: "I invest GBP500,000 for one year in a deposit which pays interest of 6% compounded on a monthly basis. How much will I receive at the end of the year?" "530,838.91" "11,485,623.34" "11,489,856.02" "5,221,078,167"On January 1, 2022, Slack Company finished legal services and accepted in exchange a 5% $400,000 promissory note with a due date of December 31, 2024. Interest is receivable on January 1 of each year. Notes with similar risk have a market rate of interest of 10%. Set financial calculators to zero decimal place. Required: (a) Determine the value of the following: N = Answer 1 Question 3 I/Y = Answer 2 Question 3 PMT = $Answer 3 Question 3 FV = $Answer 4 Question 3 (b) The present value of the note was $Answer 5 Question 3 (c) Prepare a Schedule of Note Discount/Premium Amortization for Slack Company under the effective interest method. Slack Company Schedule of Note Discount/Premium Amortization Effective Interest Method Date Cash Interest Amortized Amount Carrying Value of Note Jan 1, 2022 $Answer 6 Question 3 Dec 31, 2022 $Answer 7 Question 3 $Answer 8 Question 3 $Answer 9 Question 3 Answer 10 Question 3 Dec 31,…
- On January 1, 2022, Ace Company finished landscaping services and accepted in exchange a 10% $400,000 promissory note with a due date of December 31, 2024. Interest is receivable at December 31 each year. Notes with similar risk have a market rate of interest of 5%. Set financial calculator to zero decimal place. Required: (a) Determine the value of the following: N = Answer 1 Question 4 I/Y = Answer 2 Question 4 PMT = $Answer 3 Question 4 FV = $Answer 4 Question 4 (b) The present value of the note was $Answer 5 Question 4 (c) Prepare a Schedule of Note Discount/Premium Amortization for Ace Company under the effective interest method. Ace Company Schedule of Note Discount/Premium Amortization Effective Interest Method Date Cash Interest Amortized Amount Carrying Value of Note Jan 1, 2022 $Answer 6 Question 4 Dec 31, 2022 $Answer 7 Question 4 $Answer 8 Question 4 $Answer 9 Question 4 Answer 10 Question 4 Dec 31,…Assume that time today is Dec. 13, 2022. Determine what is being asked in each problem.1. How much is ₱10,000 worth on Dec. 13, 2024 if force of interest is given by 0.08+0.005t?2. How much is ₱50,000 worth at the end of three years from today, if interest is paid 1.43% per quarter on the first year, 8.4% convertible monthly on the second year and 3.5% force of interest on the last year?3. Ken has cash receipts at the end of each month amounting to ₱5,000 with the first being received on Jan. 13, 2023 and the last one on Dec.13, 2023. What is the net value today of all these cash receipts if interest is 9.6% compounded monthly?Suppose $10,000 is deposited into an account that earns 10% per year for 5 years. At that point in time, uniform end-of-year withdrawals are made such that the account is emptied after the 15 th withdrawal. The size of these annual withdrawals is closest to what value? (a) $2118 (b) $2621 (c) $3410 (d) $16,105
- PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULASProblem 5:A bank was paying 6½ % compound interest, compoundable quarterly. On January 1, 2020 it modified the rate, raising it to 8% compoundable semiannually. Calculate the compounded amount that a deposit of $1'000,000, made on April 1, 2017, will have on January 1, 2030. 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. TO CONSIDER THE YEAR AS 360 DAYS (WHICH IS COMMERCIAL) (only if required)2. On January 1, 2022, Balance Bar Co. receives a 5-year, $100,000 zero-interest-bearing note for services they provided. The market rate of interest for a note of similar risk is 6 percent. a. How does Balance Bar record the receipt of the note? b. And how does Balance Bar record interest revenue at the end of the first year?c. At the end of the second year?Provide manual solution and diagram for below given problem. A man borrowed P100,000 with 20% interest promised to pay the amount annually for 10 years however after the 6th deposit was made, he is in the position to pay the remaining balance. What amount should he pay?
- 7. The CFO has negotiated a cheaper deal with mCommerceBank, a competitior of eCommerceBanque.The bank has agreed to provide loan of $2102, for 1 year and the payments are required to be paid monthly (at the end). The annualized interest rate charged by the bank is 9% pa. Compute the monthly payment amount to be made to the mCommerceBank. (i) Enter the values of number of periods, Present Value and Type in cells C43, C46 and C48 respectively. (ii) Write a formula in cell C45 to convert the annual rate to monthly interest rate.(iii) Write a formula in cell C50 to compute the monthly payments to be made to the bank.4. A director plans to withdraw RM 500 at the end of every 3 months for 6 years beginning three months from now. If the interest offered by the bank is 4% compounded quarterly, find the amount that he should deposit now and the total interest he will be earning. No use excel (RM25575.20, RM10424.80)Q1: What equal annual payment series is required to repay the following present amounts? Working need to be done on excel file $25,000 in 6 years at 3.0% interest compounded annually. $9,500 in 7 years at 7.0% interest compounded annually. $21,500 in 5 years at 12.0% interest compounded annually. $1,000 in 15 years at 6.0% interest compounded annually. Q2: you plan to withdraw the amounts given below over the next five years from a savings account that earns 9% interest compounded annually, how much do you need to deposit now? End of year 1 $0.00 Year 2 $24,000 Year 3 $14,000 Year 4 $26,000 Year 5 $42,000 Solve using excel file
