ParagraphStylesYou deposit $1,000 in an account at the Lifelong Trust Savings and Loan thatpays 7% interest compounded quarterly. By how much will your deposit have grownafter 10 years (in dollars)? (Round your answer to the nearest cent.)$You invest $10,000 in Rapid Growth Funds, which appreciate by 5% per year, with yieldsreinvested quarterly. By how much (in dollars) will your investment have grownafter 7 years? (Round your answer to the nearest cent.)2$D(Ctrl) -99+

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

You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 7% interest compounded quarterly. By how much will your deposit have grown after 10 years (in dollars)? (Round your answer to the nearest cent.) %24

You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 7% interest compounded quarterly. By how much will your deposit have grown after 10 years (in dollars)? (Round your answer to the nearest cent.) %24

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

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: You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to…

A: Compound interest is interest added to the principal amount of a loan or deposit, or interest on…

Q: Find the amount of an annuity that consists of 20 quarterly payments of $700 each into an account…

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

Q: . Your client deposits $5 million in a savings account that pays 5 percent per year compounded…

A: Following is the answer to the question

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: The future value of a present sum of money after n periods is given by the formula Future…

Q: If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a…

A: Ordinary Annuity means a series of equal payments that are made over a fixed length of time at the…

Q: The owner of Oak Hill Squirrel Farm deposits $2,000 at the end of each quarter into an account…

A: In the given question we need to compute the future value after 9 years, 6 months.

Q: You deposit 54000 in an account that pays 6% interest compounded semiannually After 4 years the…

A: First, calculate value after 4 years: Future Value (End of 4 years)=Deposit×1+Interest…

Q: You deposit $24,000.00 in an account that pays 6% compounded quarterly and immediately start making…

A: In this problem you have to find out present value FACTOR and find out quarterly deposits.

Q: he outstanding balance on Peter's credit card account is 3380 dollars. The bank issuing the credit…

A: Monthly payment(PMT) of a credit card amount can be calculated by using this equation PMT…

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

A: The future value of annuity refers to the future value of a series of payments. The future value can…

Q: Most people prepare for retirement by depositing money into a monthly or annual savings plan. An…

A: An annuity is a stream of equivalent periodic cash flows over a specific time duration. The future…

Q: A depositor puts $30,000 in a savings account that pays 4% interest, compounded quarterly. Equal…

A: A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a…

Q: A 12-month certificate of deposit at Middlesex Savings Bank is advertising a 1.2% annua percentage…

A: The question is based on the concept of Cost Accounting.

Q: In the situation where Ahmad are depositing $1,000 per month in a savings account that pays 6…

A: Payment period is the no. of times money is deposited in a year. compounding period is the no. of…

Q: f K40, 000 is deposited at the end of each half year in an account that earns 6.2% compounded…

A: Comment - Multiple Questions Asked Interest It is the amount that the borrower must pay in order to…

Q: You invest $2,300 in a 4-year certificate of deposit (CD) that pays 3.2% interest, compounded…

A: In this question we need to compute the future value at the end of year 4.

Q: You deposit $4700 in an account earning 3% interest compounded continuously. How much will you have…

A: Future Value Future value refers to the value of the investment at a certain point in time in the…

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 $825 today in a savings account that pays 3.5% interest, compounded annually. How much…

A: Future value is the value of current value at a specified interest rate for given period. The…

Q: Suppose that you are to make annual deposit of $3,000 into a retirement account that pays 11%…

A: Future value of the amount is the worth of the current amount in some future specified date at given…

Q: Your client's 401K account has an initial balance of $6,900 and has monthly contributions of $500.…

A: Future value is the value of an asset in the future. Future value estimation is very important for a…

Q: You invest $4,000 in an account that pays a fixed annual rate of 6% interest compounded yearly. How…

A: In the present question we require to calculate the future value after 7 years from the following…

Q: Your bank offers 3 percent annual interest onsavings deposits. If you deposit $560 today, howmuch…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Your bank pays 9% interest, compounded annually. Use the appropriate formula to find out how much…

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

Q: You plan to make 15 annual deposits in a saving account that pays 6% interest compounded annually.…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: You borrow $10,000 at 8% for 4 years. The loan is repayable in four equal instalments at year end.…

A: Yearly installment will be calculated by amount of borrowing divided by present value factor of $1…

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

Q: First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City…

A: Amount deposited (PV) in the Second City Bank is $66,000 Number of years (n) of deposit is 10 years…

Q: Your beginning salary is $70,000. You deposit 12% at the end of each year in a savings account that…

A: Given information: Beginning salary is $70,000 Interest rate is 3% Initial payment of 12% Salary…

Q: You have set a goal to save $ 10000 in a savings account that earns interest at 2.54% compounded…

A: Annuity due are the payments which are made at the beginning of the period.

Q: You deposit $3500 in an account earning 2% interest compounded quarterly. How much will you have in…

A: Deposit amount (P) = $3500 Interest rate = 2% Quarterly interest rate (r) = 2%/4 = 0.50% Period = 18…

Q: You are about to borrow $8,000 from a bank at an interest rate of 8% compounded annually. You are…

A: The money which is taken as a loan from the bank or from any financial institution is known as…

Q: (a) To what sum will the investment grow at the time of the 10th deposit? (b) How much interest will…

A: Time value of money means the amount of money received today will be worth more than the amount of…

Q: The owner of Oak Hill Squirrel Farm deposits $3,000 at the end of each quarter into an account…

A: This question require us to compute the value at the end of 6 years, 6 months from following…

Q: Your bank pays 12% interest, compounded quarterly. How much should you deposit now to yield an…

A: Present value is the amount that should be deposited to the given yield at each of the three months.

Q: Ahmad is making $1,000 monthly deposits into a fund that pays interest at a rate of 6% compounded…

A: We need to calculate future value of an ordinary annuity. here annuity is a monthly deposit of…

Q: You make deposits of $700 at the end of each month into an account earning i^(12) = .03 for three…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: The owner of Oak Hill Squirrel Farm deposits $2,000 at the end of each quarter into an account…

A: Quarterly deposit (P) = $2,000 Interest rate = 1.5% Quarterly interest rate (i) = Interest rate/4 =…

Q: A 12-month certificate of deposit at Middlesex Savings Bank is advertising a 1.2% annual percentage…

A: The future value is the future worth of the amount that will be paid or received at the end of the…

Q: Robert wants to have $2,300 at the end of every three months for 8 years. The bank pays 8% interest,…

A: Here, To Find: Present value of annuity due =?

Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…

A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…

Q: Under your six-year savings plan, you deposit P1,000 now and P1,000 at the end of the fourth year,…

A: Future value is a value of an investment or asset on a specific date in the future. Compound…

Question

Paragraph
Styles
You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that
pays 7% interest compounded quarterly. By how much will your deposit have grown
after 10 years (in dollars)? (Round your answer to the nearest cent.)
$
You invest $10,000 in Rapid Growth Funds, which appreciate by 5% per year, with yields
reinvested quarterly. By how much (in dollars) will your investment have grown
after 7 years? (Round your answer to the nearest cent.)
2$
D(Ctrl) -
99+

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

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

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

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?
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?
How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
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?
Determining Loan Repayments Jerry Rockness needs 40,000 to pay off a loan due on December 31, 2028. His plans included the making of 10 annual deposits beginning on December 31, 2019, in accumulating a fund to pay off the loan. Without making a precise calculation, Jerry made 3 annual deposits of 4,000 each on December 31, 2019, 2020, and 2021, which have been earning interest at 10% compounded annually. Required: What is the equal amount of each of the next 7 deposits for the period December 31, 2022, to December 31, 2028, to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?
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?