K-Suppose you start saving today for a $25.000 down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after theinitial deposit. For the account described below, how much would you have to deposit now to reach your $25,000 goal in 5 yearsAn account with daily compounding and an APR of 6%You should invest $20787.15(Do not round on the final answer. Then round to two decimal places as needed.)That's incorrect.Use the compound interest formula, where A is accumulated balance after Y years,P is starting principal, APR is annual percentage rate (as a decimal), nis numberof compounding periods per year, and Y is number of years, to determine theamount, P, that you will have to investAPRY)A=P 1+OKX

Suppose you start saving today for a $25.000 down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to deposit now to reach your $25,000 goal i years An account with daily compounding and an APR of 6% You should invest $ 20767.15 (Do not round until the final answer. Then round to two decimal places as needed.) That's incorrect. * Use the compound interest formula, where A is accumulated balance after Y years, Pis starting principal, APR is annual percentage rate (as a decimal), nis number of compounding periods per year, and Y is number of years, to determine the amount, P, that you will have to invest A=P(1. APR OK X

Suppose you start saving today for a $25.000 down payment that you plan to make on a house in 5 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to deposit now to reach your $25,000 goal i years An account with daily compounding and an APR of 6% You should invest $ 20767.15 (Do not round until the final answer. Then round to two decimal places as needed.) That's incorrect. * Use the compound interest formula, where A is accumulated balance after Y years, Pis starting principal, APR is annual percentage rate (as a decimal), nis number of compounding periods per year, and Y is number of years, to determine the amount, P, that you will have to invest A=P(1. APR OK X

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
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
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
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