Find each future value of single deposit by using the future value of a single deposit formula. Timothy invests $5,000 at 17% interest compounded daily for three years.How much does he have in the account at the end of the three years?

Future Value is the accumulated value with interest after a certain time period. Future Value…

Answered: Timothy invests $5,000 at 17% interest…

Timothy invests $5,000 at 17% interest compounded daily for three years.How much does he have in the account at the end of the three years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1PROB

See similar textbooks

Related questions

Q: Georgi Rostov deposits $4,000 in a savings account that pays 8% interest compounded monthly. Three…

A: Future value is the value of the current amount at some future date after adjusting it with the…

Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: A man deposited $10,000 in a savings account when his son was born. The nominal interest rate was 8%…

A: The future value t is the estimated value of the deposit on a future date with an estimated interest…

Q: Elwin Tulpo invests Php1,000 in a Bank at 10% a year for five years, but when the interest is…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Leo makes one deposit today into his savings account earning an interest rate of 4% p.a. compounded…

A: Future value is the compounded value of a sum of money at a given interest rate for a specified…

Q: Priscilla deposits $200 at the end of each month for seven years into savings account earning 5%…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Amishi deposited $600, at the end of each six months for 19 years in a savings account. If the…

A: The future value (FV) represents the value of a current asset at some point in the future based on…

Q: Brad invests in a savings account that pays 8% interest compounded quarterly. What is the APY for…

A: The annual percentage yield (APY) the return earned by an investor over a one-year period horizon…

Q: Suppose a child's parents decide to make annual deposits to a savings account, making the first…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: Charlotte wishes to accumulate $100,000 in a savings account in 10 years. If she wishes to make a…

A: Present value indicates the current value of a future earning or sum incurred in the future years…

Q: Peter has RM10,000 that he can deposit in any three savings accounts for a 3-year period. Bank A…

A: answer deposit amount =RM10,000 Rate of interest = 4% period = 3 year bank A = compounding annual…

Q: To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine…

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

Q: If Trey opens an account with $7,500 and plans on depositing $1,500 every year-end, how much will he…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: SAVINGS ACCOUNTS If Jackson deposits $100 at the end of each month in a savings account earning…

A: We here need to use future value of ordinary annuity(payment due at end) formula for calculation of…

Q: Belle invests RM7000 in a savings account at 3.2% rate of interest, compounded annually. No further…

A: Initial investment (P) = RM 7000 Interest rate (r) = 3.2%

Q: Jeremy and Bill each have $57,043 to invest in a retirement account whose annual rate is 2.9% with…

A: As the compounding is monthly the effective rate = [1+(apr/12)]^12 - 1 = [1+(2.9%/12)]^12 - 1 =…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: If Bob and Judy combine their savings of $1,000 and $800,respectively, and deposit this amount into…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Annuity means no. of finite payments which are the same in size and made in equal intervals. Person…

Q: If Bob and Judy combine their savings of $1,260 and $975, respectively, and deposit this amount into…

A: To know the account balance after four years we have to calculate the future value. In the question,…

Q: An investor desires to deposit with a trust company a sum just sufficient to provide his family with…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: Derek will deposit $7,502.00 per year for 23.00 years into an account that earns 8.00%, The first…

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

Q: John deposits $1500 into a savings account earning simple interest at 2.19% annually. How much will…

A: Calculation of actual amount in account in future: Answer: John will have $1,582.13 in his account…

Q: Heidi deposits $8,000 in a savings account that earns 4.5% interest, compounded quarterly. How much…

A: Amount she will have is future value of deposit

Q: Yolanda deposited $1,800 at the end of each six months for 2 years in a savings account. If the…

A: The future value of an investment is the amount accumulated in the account after a period of time.…

Q: How much should the parents place at the end of each year into a savings account that earns an…

A: This problem expects the present value of 45,000. interest = 4.8% period = 16 years We also need…

Q: Yolanda deposited $1,800 at the end of each six months for 2 years in a savings account. If the…

A: The value of money differs with the time passage and the value of it at present is worth more than…

Q: Heidi deposits $8,000 in a savings account that earns 4.5% compound interest. What is the estimated…

A: Given data; deposit amount = $8000 rate of interest = 4.5% future value = 2 * deposit amount…

Q: New parents wish to save for their newborn's education and wish to have $47,000 at the end of 19…

A: Given: Future value = $47,000 Years = 19 Interest rate = 4.3%

Q: Heidi deposits $8,000 in a savings account that earns 4.5% interest, compounded quarterly. How much…

A: This question is from time value of money. It is the concept that money you have now is worth more…

Q: Cena deposits a certain amount of money into his family’s savings account at the beginning of each…

A: Future value = $ 100,000 Period = 4 Years Period in quarters = 4*4 = 16 Annual interest rate = 8%…

Q: Use the appropriate formula located on Illustration 10-1 on page 209 to solve the problem. Bob…

A: Given: Semi-annual contribution : $5,000 Annual Interest Rate: 6% Compounding: Semi-Annual Number of…

Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…

A: Deposits= $100 Interest= 3.25% per year Period= 7 years

Q: Bob has deposited $10,000 at the end of each year into a saving account for the last 12 years. His…

A: Future value: Value of $1 today is different, value of $1 in future. $1 today is more valuable than…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Interest earned on savings - 3.2% quarterly Period for which it is saved - 9 years Conversion of…

Q: On his son's fifth birthday, a man decides to deposit a certain amount which will be equivalent to…

A: given, FV = 28000 NOMINAL RATE = 512%=5.5% inflation = 8.7% n = 13 years ( 18-5)

Q: Gustav desires to deposit with a Trust Company a sum just sufficient to provide his family with an…

A: The Trust need to pay $600 per month for twenty four year, so the individual need to deposit…

Q: a) Liliana makes the following deposits into her savings account. $7,400 in 2 years, $4,800 in 3…

A: " Hi, Thanks for the Question. Since you posted multiple question, we will answer the first question…

Q: A woman deposits $10,000 at the end of each year for 14 years in an account paying 7% interest…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: If Hollie deposits $5000 in an account that earns 3.5% interest compounded annually, how much will…

A: Given data; Present value = $5000 interest rate = 3.5% compounded annually number of years = 19

Q: Tanya deposits ₱1,500 at the end of each quarter in her savings account. If the account earns 6.75%…

A: The amount deposited in the savings account grows on the basis of interest rate and the duration of…

Q: man wants to get from her bank account ¥26,265.58, 8 years from now. How much should he invest for…

A: Given information : Amount needed in 8 years ¥26,265.58 Time period 8 Number of annual…

Q: Rahimah invests RM500 in a saving account paying 12% interest per year compounded monthly. How much…

A: Hi there, Thanks for posting the questions. But per Q&A guidelines, the solution for one…

Q: Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The…

A: Information Provided: Return for the first 11 years = 1.40%Return for the next 16 years = 6.90%…

Q: Mrs Sam has deposited $ 18,000 in a bank at the rate of 7% per annum. Find out how much she will…

A: Given: Deposit = $18,000 Period 12 years Interest rate = 7% or 10%

Q: If Rex wants to be a millionaire by the time he retires (45 years from now), how much does he need…

A: Present Value: It represents the present worth of the future amount and is computed by the…

Q: Isaiah wants to have $50,000 after six years in an account by making one single deposit. The account…

A: In the given question we require to calculate the initial deposit i.e. present value from following…

Q: Yolanda deposited $1,200 at the end of each six months for 2 years in a savings account. If the…

A: The question is based on the concept of Annuity

Question

Find each future value of single deposit by using the future value of a single deposit formula.

Timothy invests $5,000 at 17% interest compounded daily for three years.How much does he have in the account at the end of the three years?

Video Video

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

Future Value:

VIEW

1. Calculate Future Value:

VIEW

Answer:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

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 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.
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?
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?
Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
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
Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?