The plan was to leave $8,000 on deposit in a savings account for 15 years at 7.5% interest compounded annually. It became necessary to withdraw $2.000 at the end of the 5th year. How much will be in the savings account at the end of the 15 year period? Show all work.

The plan was to leave $8,000 on deposit in a savings account for 15 years at 7.5% interest compounded annually. It became necessary to withdraw $2.000 at the end of the 5th year. How much will be in the savings account at the end of the 15 year period? Show all work.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: How much would an investor expect to pay for a $1,000 par value bond with a 9% annual coupon that ma...

A: A financial instrument that doesn’t affect the ownership of the common shareholders or management of...

Q: From the given data, calculate the Debt to Total Assets Ratio for the MultiVerse Corp for 2021: Acco...

A: Debt to Total Assets ratio = Long term debt + Short term debtTotal Assets

Q: You will invest $200 per year. If the rate is 8.83%, how much will you have in 13 years?

A: Amount invested per year is $200 Rate of interest is 8.83% Time period is 13 years To Find: Future ...

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a ...

A: Let the quarterly rate = r n = 13 years = 52 quarters Future value (F) = Php 5500000 Present value (...

Q: Aaron contributed $2100 to his RRSP at the end of every half-year. What was the value of his RRSP af...

A: The worth of a present commodity at a date in the future predicated on an estimated rate of growth i...

Q: on gives the right to sell an asset at any time prior to or at maturity? * A. European Put B. Americ...

A: Options gives the opportunity Buy or sell the stock on or before maturity of stock. But there is obl...

Q: What is Bond A's interest rate?

A: Real Risk-Free Rate: It is the rate of return expected from a risk-less investment. It is computed b...

Q: Please select the risk that affect only a single company? market risks. specific risks. systematic r...

A: Systematic risk is also known as non-diversifiable risk, and it exist for entire market. It arises d...

Q: Pls help with below homework. The yield on a two-year bond is 4%. The yield on a four-year bond is 3...

A: The yield on a bond is the predicted profits created and realized on a fixed-income investment over ...

Q: Norm and Tanya earn about the same salary and are undertaking a life insurance needs analysis for on...

A: As per the information provided : Nominal projected investment return = 8% Per annum Inflation = 3% ...

Q: After the due date on Sept.4, Ashley made the following transactions using her credit card. Sept. 6 ...

A: Interest on average daily balance is 1% To Find: Average daily balance Finance Charge

Q: equals the slope of the security market line: one. beta. the market risk premium. the expected retur...

A: Security refers to the financial asset which doesn’t have any real value like golds and other metals...

Q: Accumulate $2000 for 3 years at 7% simple interest. O1= $420; F = $2420 O 1 = $4200; F= $6420 O 1 = ...

A: Here, Principal is $2,000 Interest Rate is 7% Time Period is 3 years Interest Type is Simple Interes...

Q: Arabella converted her loan to light payments which gives her an option to pay 12,000 every 2 years ...

A: Present Value of annuity refers to the today's value of cash flows of a series of equal cash flows o...

Q: LAST YEAR ABC CO MADE PROFITS BEFORE TAX OF $2628000. TAX AMOUNTED TO $788000 ABC COMPANY SHARE CAPI...

A: Profit before tax = $2628000 Tax = $788000 Shares outstanding = 2000000

Q: Calculate the profitability index of a 20-year project with a cost of $400,000 and an annual cash fl...

Q: One-year T-bills yield 1.00%. Based on future rates, the market expects that one year from now, new ...

A: Pure Expectations Theory (PET) is used to compute the future rates because this theory defines that ...

Q: ate Equity What are the benefits of less regulation for private equities

A: Private equities are important source of finance for the new and small business and even larger busi...

Q: safety net to safeguard the world financial system from the Asia-type o nternational Monetary Fund (...

A: Introduction : In simple words, financial crisis refers to the situation in which the assets of any ...

Q: A rotary engine powers a vertical takeoff and landing (VTOL) personal aircraft known as the Moller S...

A: N = 28 Total cost = 110,000,000 Interest rate = 9% Equal amount spent each year = Total Cost / N = 1...

Q: Analyst forecasts which focus on a top-down approach to forecasting future performance are most like...

A: Top down approach in fundamental analysis involves analysis of macroeconomic factors first, then ind...

Q: Pedro Corp. currently has sales of P2,000,000, and its days sales outstanding is 2 week. The financi...

A: SINCE YOU WANT US TO SOLVE THREE PARTS BUT THE LAST PART BELONGS TO ACCOUNTS AS IT REQUIRES PREPARAT...

Q: ABC Corporation will be investing in X Corporation shares. X provided dividends of 45 per share last...

Q: PERIODO MÁQUINA A PERIODO MÁQUINA B 30,000.00 42,000.00 1 9,500.00 1 8,600.00 2 9,500.00 2 10,940.00...

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative) ...

Q: A. True or False: Write T if the statement is correct. If it is not, write F, and state your reason ...

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...

Q: A margin account requires an initial margin of 50% and a margin call will occur if the stock price d...

A: Initial price = $20 Margin call price = $13.33 Initial margin = 50% Let the maintenance margin = x

Q: The required rate of return is 6%. Which of the following statement on decision rules is incorrect?

A: We can evaluate a project using various tools of capital budgeting like NPV, IRR, payback, discounte...

Q: you have two investmwnts, each of which has a 0.8% chance if a loss $12 million and a 99.2% chance o...

A: The process of discovering, analysing, and controlling threats to an organization's capital and prof...

Q: (Related to Checkpoint 7.1) (Expected rate of return and risk) B. J. Gautney Enterprises is evaluati...

A: Given: Probability(P) Return 0.05 -4% 0.4 3% 0.5 6% 0.05 9%

Q: using only ANNUITY DUE formulasQuestion: A man bought an equipment costing P60,000 payable in 12 qua...

A: Annuity due formula for calculation of periodic payment when present value is known: Pv= P60,000, n...

Q: Ifyouare in Vietnam, please quote direct and indirect rate from Tha i Baht for Cash and both Buying ...

A: The question is based on the concept of foreign exchange quotation. Foreign exchange quotation uses ...

Q: You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent...

A: Data given:: Amount = $5000 Regency Bank offers = 15% compounded monthly (15%/12 = 1.25%) King Bank ...

Q: GoodFish Corporation is considering a new project with a four-year useful life. The initial investme...

A: NPV represents net present value which is the the net value added by undertaking a capital budgeting...

Q: 1- Consider a project of the Pearson Company. The timing and size of the incremental after-tax cash ...

A: Since it involves multiple questions, we will answer 1st question for you.

Q: Answer all parts

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

Q: How long will it take an investment to triple if it earns: o. 9.4% compounded annually? (Do not roun...

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

Q: Ray Miller was looking for funds to support his company's expansion. His bank offered him a $25,000 ...

A: Value of simple discount loan is $25,000 Interest rate is 10% Time period is 90days To Use: 30/360 ...

Q: Which option gives the right to buy an asset any time prior or to maturity? * A. European Call B. Am...

A: An option is a financial derivative instrument that derives its value from an underlying. The option...

Q: Solve each of the following completely. 1. Find the compound amount and compound interest in Php62,0...

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

Q: You are interested in buying one corporate bond and your broker has offered two corporate bonds for ...

A: A bond is a monetary instrument issued by the government and companies. It offers a fixed rate of re...

Q: Bob has $2,500 invested in a bank that pays 1% annually. How long will it take for his funds to doub...

A: A fund is a collection of money set aside for a certain purpose. A fund can be formed for a variety ...

Q: Make the cash flow diagram and solve: What is the maximum amount that can be loaned at 5 percent in...

A: Interest rate = 5℅ Year Payment 1 500.00 2 1000.00 3 1500.00 4 2000.00 5 2500.00

Q: 15. Scarlet Knight Corporation's bonds have a face value of $1.000 anda 9% coupon paid semiannually:...

A: The current yield of the bond is the Annual return paid by the bond divided by its current market pr...

Q: The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to...

A: As you have asked question with multiple parts , we will solve the first 3 parts as per the policy p...

Q: Suppose the current USD/euro exchange rate is 1.2000 dollars per euro. The six-month forward exchang...

A: Exchange rate (ER) is a value at which two different currencies are exchanged or traded. To estimate...

Q: Howie Long has just learned he has won a $500,000 prize in the lottery. The lottery has given him tw...

A: In the given case the howie long has won a $500000 prize and he has been offered two options either ...

Q: Suppose you make an annual contribution of BD100 each year to a college education fund for a niece. ...

A: Here, Annual Deposits is BD100 Interest Rate is 6.5% Current Age is 4 years Last Deposit is made on ...

Q: QUESTION 4 Jeremiah invested RM100 every month into his Paradise Mutual Fund account for 8 years at ...

A: A trade discount is offered when a manufacturer sells a product to a reseller rather than the end cu...

Q: BNG Inc. has cash of $16,300, inventory of $56,400, accounts receivable of $128,366, accounts payabl...

A: Accounting Equation shows the relationship between assets, liabilities, and equity of the company. I...

Q: Faizal purchased an electric motorcycle at RM8,500 through an instalment payment. The purchase was m...

A: Motorcycle cost = RM 8,500 Down Payment = RM 1,500 Time Period = 5 Years Interest rate = 4%

Question

Solve it correctly not use excel

The plan was to leave $8,000 on deposit in a savings account for 15 years at 7.5%
interest compounded annually. It became necessary to withdraw $2.000 at the end
of the 5th year. How much will be in the savings account at the end of the 15 year
period? Show all work.
Paragraph
B IU A

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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.
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?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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 $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?
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?