Could you please help me to solve this? What is the maturity value of a 8-year term deposit of $1773.97 at 4.4% compounded quarterly? How much interestdid the deposit earn?.…….The maturity value of the term deposit is $.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places asneeded.)The amount of interest earned is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places asneeded.)

Maturity value is calculated with the Future value formula which is as follows. Please note the…

Answered: What is the maturity value of a 8-year…

What is the maturity value of a 8-year term deposit of $1773.97 at 4.4% compounded quarterly? How much interest did the deposit earn?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 13E

See similar textbooks

Related questions

Q: having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers Bank.…

A: The effective interest rate is interest rate considering after the impact of compounding on the…

Q: Company B uses $800,000 of its accounts receivables as collateral when the company borrowed…

A: The accounts receivable refers to the amounts due from customers for the goods and services provided…

Q: Revenues - Manufacturing Expenses - Marketing Expenses - Depreciation =EBIT - Taxes (20%) =Unlevered…

A: Capital Budgeting is a technique to understand if a project is adding value to the organization or…

Q: Related to Checkpoint 9.6) (Inflation and interest rates) What would you expect the nominal rate…

A: Nominal Interest Rate is that rate of interest which includes the inflation rate of that currency.…

Q: Discuss the implications of not having a data governance framework to support product analytics

A: Data governance is referred as the process of the management of the usability, integrity,…

Q: Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to…

A: The Hurwicz criterion: The Hurwicz criterion is a tool that aids decision-making under uncertainty.…

Q: Ran Company wants to determine its cost of common stock equity using the CAPM. The company's…

A: Solution:- Capital Asset Pricing Model (CAPM) is a model to determine cost of equity of a company.…

Q: Natsam Corporation has $291 million of excess cash. The firm has no debt and 526 million shares…

A: A firm is at liberty to take a decision on how to disburse the excess cash at hand. It may decide…

Q: Use the present value of an annuity formula to find the maximum car loan that you can afford if you…

A: Annuity is the equal stream of cash flows received/paid at regular interval of time. There are 2…

Q: Find the present value of a deferred annuity of P9565 every six months for 4 years that is deferred…

A: To calculate the present value we will use the we will use the below formula Present value =…

Q: Suppose there are an infinite number of assets with an expected return of 12% p.a. and a standard…

A: Formula for Expected Return and Standard deviation of 2 asset and 3 asset portfolio w1,w2,w3 =…

Q: A company is considering purchasing a new machine. The machine costs P50,000 and requires…

A: Internal rate of return (IRR) It is a capital budgeting tool to decide on whether the capital…

Q: Compute the simple payback period for this replacement option. Determine the discounted payback…

A: Information Provided: MARR = 10% Initial cost = $12 million Year 1 Savings = $2.25 million Year 2…

Q: Describe some of the barriers to international portfolio diversification.

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: ABC and XYZ have total equity values of P5,000,000 and P10,000,000 respectively. If they merged, a…

A: We need to use constant growth model to calculate share price after merger. Stock price(P0) =D1rs -g…

Q: are deciding between two mutually exclusive investment opportunities. Both require the same initial…

A: Crossover rate: The crossover rate is used in capital budgeting analysis exercises to demonstrate…

Q: Holding other factors constant, an increase in the tax rate on revenue generated by capital will:…

A: Increase in tax rate acts as the addition of tax liability of the business. This tax rate is…

Q: Assess the main features of exchange traded funds (EFTs) drawing on their advantages and…

A: Exchange Traded Funds: ETF represents the basket of financial securities that are traded on an…

Q: Related to Checkpoint 9.2) (Yield to maturity) Abner Corporation's bonds mature in 18 years…

A: Yield to maturity of bond: bond's anticipated returns upon completion of all timely payments during…

Q: Compute the pay back, discounted pay back, NPV and IRR of the following projects; Assume a discount…

A: Discount rate 10% Year Project A Project B Project C 0 -2000 -2000 -2000 1 500 500 1800…

Q: The maximum loss a seller of a stock put option can suffer is the _

A: Put Option: Put option provides the buyer the right to sell an asset at a predetermined price.…

Q: A P15,000 loan at 12% compounded quarterly is to be amortized every 3 months for 12 years. Find the…

A: Here, To Find: Quarterly payment =? Construction of amortization schedule =?

Q: ABC Corporation plans to purchase a call option for 1,000 Red Corp. ordinary shares at a strike…

A: Black Scholes Model is used to calculate the value of a call option and requires 5 variables to…

Q: Amar Corporation pays 11.6% interest on its outstanding bonds. If its tax rate is 40%, what is its…

A: Solution:- When a company issue bonds to raise funds, it pays interest on it. This interest is…

Q: At i = 18%, what is the annual-equivalence amount for the infinite series shown next? 5 Click the…

A: Cash flow (Year 1 - 6) = $2400 $2400 cash flow period (p) = 6 years Cash flow (Year 7 - Infinite) =…

Q: An investor is considering purchasing Apple’s stock for $150 per share. The investor is optimistic…

A: Strike price = $150 Option premium = $3.95 Breakeven value = ? Breakeven value on the call option…

Q: The after-tax cost of debt debt for the firm is____%

A: Information Provided: Yield on debt = 7.01% Tax rate = 34%

Q: Balance sheet and income statement data indicate the following: Bonds payable, 10% (due in two…

A: Times interest earned ratio = Earnings before interest and tax/Interest expense

Q: Robertson Resorts is considering whether to expand their Pagosa Springs Lodge. The expansion will…

A: The question is related to capital Budgeting. The the annual net operating income is calculated with…

Q: 2. When you deposit $50 in currency at Old National Bank A) its assets increase by less than $50…

A: When you deposit money in the banks than some part of it goes to deposit and some part of it goes to…

Q: What is the relationship of business risk, financial risk, and stand-alone risk? How to calculate…

A: Risk refers to the proportion of uncertainty arising as a potential financial loss inherent while…

Q: calculate the M1 money multiplier (using the U.S. laws and regulations) but forgets to tell you…

A: Formula for M1 multiplier = [1+ (C/D) + (ER/D)]/ [(SD/D) + (STD/D)] Where C = Cash /currency in…

Q: Nick's Enchiladas has preferred stock outstanding that pays a dividend of $3 at the end of each…

A: A fixed rate of dividend is guaranteed to preferred shareholders. Although there is no legal…

Q: pia Inc. issued bonds for $375,000 that were redeemable in 5 years. They established a sinking fund…

A: The bonds are paid by the monthly payments that are to be accumulated over the period of time by…

Q: Andrew has been employ and open his own independent pharmacy. His annual expenses will include…

A: Implicit cost-It represents an opportunity cost. Implicit cost in this case would be: Implicit…

Q: A writer sells 100 call options with strike $46 for $0.94 each and deposits these premiums in a…

A: A writer receives the premium for the call option sold. He receives $0.94 per option.The amount he…

Q: stimate the annual required rate of return for BTO stock, using the Constant Dividend Growth Model.…

A: To calculate the annual required rate of return we will use the below formula Annual required rate…

Q: uation of companies can be done by forecasting a series of cash flows and then estimating a horizon…

A: Value can be found as the discounted value of cash flow and discounted value of terminal value of…

Q: Darwin is a young entrepreneur trying to keep his business afloat. He has missed two payments to a…

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

Q: Which of the following asset combinations represent diversification in your portfolio? Select one:…

A: In the world of finance in general and investing in particular diversification of portfolio is an…

Q: Joan Zorba orders calculators for her office supply stores. Each calculator cost $35, currently she…

A: Given values in the question: Cost of calculator (C) = $35 Daily demand (d) = 5 Ordering cost (Co)…

Q: Your company has earnings per share of $8. It has 1 million shares outstanding, each of which has a…

A: Answer a:- * Calculation of number of shares after merger:- We are given that our company has a…

Q: A man invested P1,000 per month on a bank that offers 6% interest compounded annually. How much can…

A: The Concept is of Annuity. Annuity is a series of fixed payments/receipts made at regular interval…

Q: There are two accounts. One pays simple interest and the other pays compound interest. Both accounts…

A: In case of simple interest Future value = Present value×[1+Periodic interest rate×time ]

Q: Melanie founded her company using $250,000 of her own money, issuing herself 100,000 shares of…

A: To calculate the percentage of ownership we will use the below formula Percentage of the ownership…

Q: Calculate the value of the bond. b. How does the value change if the market's required yield to…

A: Information Provided: Coupon rate = $70 Par value = $1000 Bond maturity = 18 years YTM on…

Q: In 1988, your Grandmother left you a trust fund with $10,000 in the account that has been earning 8%…

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

Q: BA Corp is issuing a 10-year bond with a coupon rate of 8 percent. The interest rate for similar…

A: Note: You have posted several different questions at once. I have answered the first question in…

Q: Which of the following statement(s) are true? a By adding more stocks to my portfolio, I can…

A: One of the most popular ways to determine a risk-adjusted return is through the use of the Sharpe…

Q: yields of $1000 dollar par value zero-coupon government bonds (ignore liquidity premiums) are tabled…

A: 2 year interest rate 3 years from now is calculated using following equation [1+f(T*,T)]T =…

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Could you please help me to solve this?

What is the maturity value of a 8-year term deposit of $1773.97 at 4.4% compounded quarterly? How much interest
did the deposit earn?
.…….
The maturity value of the term deposit is $.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as
needed.)
The amount of interest earned is $
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as
needed.)

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

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
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest? (do not round intermediate calculations. Round your answer to 2 decimal places.)
the difference between the future values of a deposit accumulated for 15years at a rate of 9.5% compounded per annum and the future value of same deposit over the same period at 7.75% compounded quarterly is 375. find tge deposit
Assuming a 360-day year, when a $14,700, 90-day, 12% interest-bearing note payable matures, total payment will be ______ .Round your answer to the nearest whole dollar. a.$1,764 b.$15,141 c.$441 d.$16,464
A deposit of $250 earns the following interest rates: 10 percent in the first year. 8 percent in the second year. 7 percent in the third year. What would be the third year future value? (Round your answer to 2 decimal places.)
You can invest SGD 100,000 in fixed deposit with a bank. The term of the deposit is 6 years, and the deposit rate quoted is 3.6%.Calculate the amount (round to 2 decimal places) you will have in 6 years, upon maturity of this fixed deposit, if the 3.6% is an APR but compounded quarterly
A deposit of $19,000 earns a continuous force of interest given by 0.028t for the first 5 years (t is time in years), and a constant force of 0.14 thereafter. What nominal quarterly compounding rate is earned over the first 13 years?
Suppose you deposit $4,000 at the end of each quarter for five years at an interest rate of 8% compounded monthly. Which of the formulas given next will determine the equal annual end-of-year deposit amount that would accumulate the same balance over five years, under the same interest compounding, as the $4,000 deposited quarterly?(a) A= ($4,000 (FIA, 2.01%,20)] x (AIF, 8%, 5).(b)A = $4,000 (FIA, 9%, 5).(c) A= $4,000 (FIA, 9%, 20) x (AIF, 9%, 5).(d) None of the above.
Consider the following cases: Amount of Compounding Initial Stated Annual Frequency, m Deposit Case Deposit ($) Rate, r (%) (times/year) Period (years) A 2,500 6 2 5 B 50,000 12 6 3 C 1,000 5 1 10 D 20,000 16 4 6 a. Calculate the future value at the end of the specified deposit period.
Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
suppose that $47,700 is invested in certificate of deposit for 3 years at 6.2% annual interest to be compounded daily. how much interest will this investment earn?