Answered: You deposit $ 6,957 in an account that…

You deposit $ 6,957 in an account that pays 1 % simple interest. How much do you have after 12 years? If needed, round your answer to zero decimal places.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 5RE: Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit...

See similar textbooks

Related questions

Q: You deposit $2,500 at the end of the year (k = 0) into an account that pays interest at a rate of 7%…

A: Saving Account is a deposit facility offered by commercial banks to their customers which gives them…

Q: If you would like to make $609 in 4 years, how much would you have to deposit in an account that…

A: We need to calculate persent value(amount deposit today) of investment with simple interest from…

Q: How much will accumulate in an account with an initial deposit of $100, and which earns 10% interest…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much…

A: Yearly Deposit are of $5,700 Interest rate is 11% Time period is 19 years for Part(A) and 38 Years…

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: Assume you deposit $5,400 at the end of each year into an account paying 10.5 percent interest. a.…

A: We will have to use the following formula to calculate the future value of an ordinary annuity:…

Q: Starting three years from today, you make equal annual deposits of $5,000 into an account which…

A: Effective annual rate is calculated using the formula: EAR=1+rmm-1=1+12%22-1=1.062-1=12.36%

Q: If you want to earn 3% annual simple interest on an investment, how much should you pay for a note…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: At the end of each quarter, a life insurance client deposits PhP 9,174 for 5 years. If money is…

A: The amount of saving can be calculated as future value of annuity.

Q: If you deposit $5,000 in a bank account that pays 6% interest annually, how much will be in your…

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

Q: An amount of $4,000 is deposited into an account for which the interest rate is 5% per annum.…

A: Given Rate = 5% Time = 7years

Q: You plan to deposit $4,900 at the end of each of the next 15 years into an account paying 11.3…

A: Solution- Given that P=$4900 r=11.3% n=15 years Future value of Annuity- =P * [ (1+r)^n -1] /r

Q: Suppose you need to hand $52,569 in an account 25 years from today and that account pays 6%. How…

A: Future vaue =52569Interest rate=6%

Q: You deposit $66000 into an account which pays 5% compounded quarterly. How much can you withdraw at…

A: Perpetuity means infinite no. of payments which are same in size and made in equal intervals. Person…

Q: How much will the account contain after 9 years and 3 months? How much interest will be earned?

A: Deposit amount = $600 Interest Rate = 5±70 compounded quarterly i.e 4.3 or 5.7 compounded quarterly…

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: You place £1,000 on deposit at an annual interest rate of 10% and make regular contributions of £250…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: How much money should be invested in an account that earns 9% interest, compounded monthly, in order…

A: Computation of the money that has to be invested:Hence, the money that has to be invested is…

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

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

Q: You deposit $57000 into an account which pays 7% compounded annually. How much can you withdraw at…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You put $6,150 in the bank for 15 years at 5%. Using the Future Value of 1 Table, what factor would…

A: Future Value is known as Terminal Value. The accrued amount of FVn on principal amount after n…

Q: You wish to save $58000 in an account which pays 7% compounded quarterly by making monthly deposits…

A: Given: Expected value in the account in future $58,000.00 Interest rate per year 7%…

Q: How much would be in your savings account in seven years after depositing $290 today if the bank…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: At the end of each quarter, a life insurance client deposits PhP 7,076 for 5 years. If money is…

A: Quarterly deposit (P) = Php 7076 Period = 5 Years Number of quarterly deposits (n) = 5*4 = 20…

Q: What is the amount a person would need to deposit today to be able to withdraw $6,000 each year for…

A: Present value (PV) is the current value of future money or cash flows at a specified rate of return.…

Q: You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded…

A: Deposit amount (PV) = $ 1000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…

Q: If you earn 5% per year on your bank account, how long will it take an account with $110 to double…

A: The present value is the present worth of the amount that is paid or received in the future.

Q: How much would be in your savings account in 9 years after depositing $190 today if the bank pays 9…

A: Deposit amount (P) = $190 Interest rate (r) = 9% Period (n) = 9 Years

Q: You deposit $2,000 in an account today earning 8% per year. Five years from today, you make another…

A: Using excel PV and FV function

Q: For someone who has $100,000 to save for 20 years, would a 4% Certificate of Deposit that compounds…

A: Certificate Of Deposits A certificate of deposit (CD) is a bank or credit union product that pays a…

Q: You plan to deposit $700 in a bank account now and $900 at the end of one year. If the account earns…

A: Simple interest is a method of calculating the percentage of interest paid on a sum over a defined…

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 7% interest…

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

Q: If you deposit #9989 into an account paying 3.6% annual interest compounded monthly, how much money…

A: The importance of future value: Future value is a crucial estimate since it informs investors and…

Q: If you deposit money today in an account that pays 9.5% annual interest, how long will it take to…

A: Given The rate of interest is 9.5%

Q: If you want to earn 3% annual simple interest on an investment, how much should you pay for a note…

A: Interest = Principal * rate * time Interest =$13500*3%*10/12 Interest = $337.50

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

Q: 14

A: Rule 72 is the equation that is best used to find the duration it would take to double the amount at…

Q: You wish to save $51000 in an account which pays 4% compounded monthly by making semiannual deposits…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: You plan to withdraw the amounts given below over the next five years from a savings account that…

A: GIVEN, R=9% YEAR CASHFLOW 1 0 2 24000 3 14000 4 26000 5.00 42000

Q: If you invested $12,000 into an account paying 9% compounded monthly (j12), how much would you have…

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

Q: You wish to save $52000 in an account which pays 3% compounded semiannually by making quarterly…

A: An annuity is a series of payments or deposits for a certain period of time at a compounded rate.…

Q: How much money would be in an account if $6,200 is deposited at 2% interest compounded semi-annually…

A: Time value tells the amount received by an individual today is of more worth than the same amount…

Q: If you deposit $2000 in an account that pays 3.6% with quarterly compounding, what is the balance…

A: given, pv = $2000 r = 3.6% m =4 n= 6

Q: You will be able to deposit $4,000 at the end of each of the next 5 years in a bank account paying…

A: We need to use future value formula to calculate future value of single deposit and future value of…

Q: How much would you need to save each month in an account that earns 8% interest compounded monthly…

A: To calculate the monthly payment we will use the following formula Monthly payment =…

Q: You have $23,067.36 in a brokerage account, and you plan to deposit an additional $6,000 at the end…

A: The computations as follows: Hence, it will take 14 years to reach your goal.

Question

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

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.
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
Suppose you deposit $1,751.00 into an account today that earns 5.00%. It will take ___ years for the account to be worth $2,806.00. Answer format: Number: Round to: 2 decimal places.
Find the amount accumulated in an account where $25 is deposited monthly for 10 years at 2.5% interest compounded monthly. Assume the account currently has $450 in it. Round your answer to two decimal places if rounding is necessary. The $ sign is already listed next to the answer box, so do not type a $ sign in your answer.
[2] Directions: Identify if the problem involves simple interest or compound interest. Then, solve the problem. Show complete solution. If you deposit P6,500 into an account paying 8% annual interest compounded monthly, how much money will be in the account after 7 years.
ESSAY writing. Provide your answers and make at least four statements in a phrase to obtain 10 points and highlight your main points, and provide solution for computation Mr Dela Cruz deposited ₱18,980.00 from the project you’ve earned in a time deposit account with your savings bank at a rate of 1.25 per annum. This will mature in mature in two years. Compute for the interest and the total amount to be collected?
onsider a credit card with a balance of $8500 and an APR of 14.5%. If you want to make monthly payments in order to pay off the balance in 11 year, what is the total amount you will pay? Round your answer to the nearest cent, if necessary
A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used to establish an annuity that earns 7%, compounded quarterly, and pays $5500 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.) Please Introduction and explanation step by step without plagiarism and I humble request plz use math tools no handwriting
Please do not answer this question in excel thank you in advance. A deposit of $2,500 is made into an account drawing 3.6% interest compounded monthly. Find the future value 15 years after the initial deposit.
How much money (to the nearest dollar) will you need to deposit in an account now in order to have $35,000 in the account after 5 years if the account earns 1.2% interest compounded weekly? Summarize the information provided, stating the interest rate in a decimal form. PN = r = N = k = Solve the problem and give your answer here:
[1] Directions: Identify if the problem involves simple interest or compound interest. Then, solve the problem. Show complete solution. If you deposit Php4,000 into an account paying 6% annual interest compounded quarterly, how much money will be in the account.
$10,000 is deposited in an account in which it earns 9.5% interest compounded quarterly. No principal or interest is withdrawn from the account. Instead, both continue to earn interest over time. (Round your answers to two decimal places.) (a) Find the account balance after one year using the Simple Interest Future Value Formula to compute the balance at the end of each compounding period. $ (b) Find the account balance after one year using the Compound Interest Formula. $