The Bank pays $1,200 in a bank deposit after a period of 12 years at an annual interest rate of 6.5% How much should you deposit in your bank account now Future Value ? Discount Rate/Period ? No. of Periods ? Present Value ?

The Bank pays $1,200 in a bank deposit after a period of 12 years at an annual interest rate of 6.5% How much should you deposit in your bank account now Future Value ? Discount Rate/Period ? No. of Periods ? Present Value ?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

See similar textbooks

Related questions

Q: If you deposited P1,000 a couple of years ago in a bank that pays the interest bimonthly. After…

A: The effective rate implies for percentage figure which shows proportion of increase that will occur…

Q: A person borrows $3,000 on a bank credit card at a nominal rate of 18% per year, which is actually…

A: Loan is the value which is borrowed from the other sources like banks and this amount repaid later…

Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…

A: Formula: Interest amount = Deposit amount x Time period x Interest rate

Q: A depositor currently has $6,000 and plans to invest it in an account that accrues interest…

A: Formula: Future value = Present value x ( 1 + r )N R = Rate of interest N = Number of years

Q: You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is the future value…

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

Q: An investor deposits €10,000 in a bank account that pays simple interest at a rate of 5. What will…

A: Time value of money: The time value of money is the idea that the value of money received today…

Q: You want to lend $12,000 as a bank deposit in a private bank with an interest rate 3 % per month.…

A: The worth of money changes with time. Therefore, the time value of money explains the worth of money…

Q: compounded

A: Formula to calculate preset value: PV = FV/(1+r/n)^nt Where PV is the present value, FV is the…

Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: . What lump sum of money must be deposited in a bank account at present time so that Php 500 monthly…

A: Monthly withdrawal (M) = Php 500 after 6 years (72 months) Number of withdrawals (n) = 5 years = 60…

Q: If the bank is paying 12% interest compounded semiannually, how much must you deposit today in your…

A: Formulae for present value is, Present value = Future value / (1+(r/n))t*n Where 'r' is rate of…

Q: 1. It is now January 1, 2018. You will deposit $1,000 today into a savings account that pays 8…

A: Answer 1: Information Provided: Deposit = $1000 Interest Rate = 8%

Q: You deposit $1,000 in an account today at a rate of 4%. What will be in the account after 40 years…

A: Future value = Present value * (1+rate)^no. of period

Q: Your bank is offering you an account that will pay 20% interest in total for a two-year deposit.…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: PLEASE HELP ASAPThe client has made a deposit in the bank in the amount of 10,000$. The duration of…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more…

A: Interest is an additional amount which is earned on deposited amount for the period. It increases…

Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…

A: We know that the formula to calculate the present value is I/(1+i)n, where I is the cash flow that…

Q: It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%. a.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How much should you deposit now into a certificate of deposit (CD) at a bank, if the CD matures 10…

A: To calculate the principal amount deposit in the bank , we have to use the following formula : A = P…

Q: If a nine-month term deposit at a bank a simple interest rate of 9% per annum, how much will have to…

A: Simple interest: As the name indicates it is a simple interest computed on the amount of principal.…

Q: A bank bill with a face value of $250,000 was issued today and it matures in 60 days' time. If…

A: Present value is referred to as the current value of the future sum of the funds/cash flows stream…

Q: A person wishes to get 800$ at the end of second year and 900$ at the end of fifth year, if rate of…

A: The question is based on the concept of calculating the present value of expected future cash flows…

Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: A bank wishes to earn a 17% simple interest in discounting notes. If the term of the discount is 3…

A: Simple Interest: When the interest on the borrowed amount is computed on the principal at the loan…

Q: What lump sum of money must be deposited into a bank account at the present time so that $500 per…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: Suppose that you make 12 equal annual deposits of Php 2,000 each into a bank account paying 8%…

A: Annual deposit (P) = Php 2,000 Annual interest rate (R) = 8% Number of annual deposit (N) = 12

Q: Allied Bank pays 4% interest compounded annually on deposits, while bonkers Bank pays 3.5%…

A: The Effective Annual Rate: The effective annual rate is affected by the number of compounding…

Q: You borrow 180000 for 12 years from a bank in order to renovate your flat. The effective interest…

A: Loan Amount = 180,000 Time Period = 12 years Interest Rate = 4.8%

Q: You deposit $296 today into a bank account that earns 12% annually. How much will be in your…

Q: The bank is offering to the public their savings account scheme that pays 9.84% compounded annually.…

A: Annual rate (r) = 9.84% compounded annually Let the quarterly compounded rate = i Number of…

Q: if you deposit 55,650 in a bank at 12% interest for a period of ten years what will be the feuture…

A: Formula: Future value = Present value*(1+rate)^years

Q: How much must you deposit in the bank today if you want to have $1,500 after 4 years? Interest rate…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: n annual interest of 4% on 2-year CDs and you deposit $10,000. What is your balance two years later?

A: Given, Annual interest rate , i = 4% No. of years, t = 2 Amount deposited, A = $10,000

Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…

Q: How much do you need to deposit into a bank in order to receive proceeds of $200,000 in 5 years if…

A: The equation is, PV=FV÷1+in Where, Present value is represented by PV Future value is represented by…

Q: How much money should be deposited annually in a bank account for five years if you wish to withdraw…

A: We required for calculating an amount for 5 years from this time. Then, we need to determine the…

Q: What lump sum of money must be deposited in a bank account at present time so that Php 500 per…

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

Q: A person invests 100,000 TL in bank deposits with an annual nominal interest rate of 10%,…

A: According to the time value of money concept, money available today worth more than the same amount…

Q: a. If the bank compounds interest annually, how much will you have in your account on January 1,…

A: Comment: The Question is Multipart, so SME will answer only three subparts. For the rest of the…

Q: You plan to invest an amount of money in a certificate of deposit (CD) at your bank. The stated…

A: Compound Interest is also called interest on interest. It is the addition of interest in the…

Q: You deposited PHP5,500 in a bank with an interest rate of 6% for l year. What is the uture value of…

A: Deposited amount (PV) = PHP5,500 Interest rate (r) = 6% Period (n) = 1 Year

Q: You deposit $1,000 in a bank account at the beginning of Year 1. How much will be in the account…

A: Solution-1 Deposit at the beginning of year 1 $1,000 Furture value of $1 at 4% for 12 period…

Q: You want to lend $10,000 as a bank deposit in a private bank with an interest rate 3% per month. You…

A: Amount lend as deposit - $10,000 Interest rate - 3% per month Period - 6 months

Q: A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple…

A: Borrowings/Mortgage are the loan which is taken by the individual to meet its financial…

Q: What is the effective interest rate of a simple discount note for $32,000, at an ordinary bank…

A: Given: Principal amount =$32000Discount rate =13%Time duration =10 daysNumber of days in a year =360…

Question

The Bank pays $1,200 in a bank deposit after a period of 12 years at an annual interest rate of 6.5%

How much should you deposit in your bank account now

Future Value ?

Discount Rate/Period ?

No. of Periods ?

Present Value ?

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

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.
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.
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
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
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?
A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383