Answered: You deposit $1,500.00 in an account…

You deposit $1,500.00 in an account earning 8.46% interest compounded weekly. How much will you have in the account in 19 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: How much would you need to deposit in an account each month in order to have $20,000 in the account…

A: The amount you need to deposit in an account each month in order to have $20,000 in the account in 7…

Q: You borrowed $650,000 from a bank at an interest rate of 63% compounded quarterly to purchase a new…

A: Monthly payments can be calculated by present value of annuity as the money borrowed (Loan) is the…

Q: You deposit $100 each month into an account earning 6% interest compounded monthly. a) How much…

A: Future value refers to the amount worth in future time which is deposited today by an investor at…

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: If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be…

A: We know that the formula to calculate the accumulated value of cash flow is C*(1+r)n, where C is the…

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: If you deposit $8700 today in an account that pays 8.5% per year, compounded quarterly, how much…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: If you wish to accumulate $140,000 in 13 years, how much must you deposit today in an account that…

A: The provided information are: Future value (FV) = $ 140000 Time period (n) = 13 years Interest rate…

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: How much should you deposit at the end of each quarter into an account that pays 4.4% annual…

A: The principle refers to the amount you committed to repay at the outset. The expense of borrowing…

Q: You deposit $200 each month into an account earning 3% interest compounded monthly. a) How much…

A: Monthly Deposit = 200 Monthly Compounding Time Period (n) = 240 months Interest Rate (r) = 3%/12 =…

Q: How much must I deposit into an account every month to have $1,500,000 in 15 years at a rate of 7%…

A: A recurring deposit is a special type of term deposit offered by banks which help people with…

Q: You deposit $201 at the end of each quarter into an account that pays a nominal annual rate of 16%…

A: The account value at end of 15 years can be calculated with the help of future value of annuity…

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 $19,000 is deposited in an account earning interest compounded weekly at 5.87% for 13 years, what…

A: Effective Rate of Interest: It is the annual rate on a loan or investment considering the effects…

Q: Assume that you make quarterly payments of $650 into an annuity paying 8% interest compounded…

A: In this question we need to calculate the future value from following details: Quarterly payment =…

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: Suppose you invest $1,500.00 in an account with an annual interest rate of 6% compounded monthly (6%…

A: Monthly deposit = $125 Monthly interest = 0.5% In contrasts to a fee that the borrower may pay the…

Q: Suppose you deposit $22.000 in an account today that pays 6% interest, compounded annually. How long…

A: Information Provided: Initial deposit = $22,000 Future value = $76,000 Interest rate = 6% compounded…

Q: You initially deposit $3,000 in to a savings account for 5 years, paying 6% compounded annually.…

A: We will first establish the timelines We deposit $3,000 for 5 years at an interest of 6%. t0 is…

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: You borrow $8,000 at an annual rate of 21%. If you repay the debt in three months, what do you owe?

A: In this question we require to calculate the amount we owe if we borrow $8000 and repay it in 3…

Q: You deposit $5000 at the beginning of each year into an account earning 3% interest compounded…

A: Introduction: Annuity Due: It refers to the series or stream of equal payments made at the beginning…

Q: If you deposit $3,500 into an account earning an annual rate of 11% what would your account be worth…

A: To calculate the value of account after 35 years we will use the below formula Value after 35…

Q: You make deposits of $300 each year for the next 17 years at 5 % compounded annually. How much is in…

A: Annual deposit (P) = $300 Interest rate (r) = 5% Period (n) = 17 Years

Q: Assume you deposit $5700 at the end of each year into an account paying 11.25 percent interest.…

A: Given: Deposit = $5,700 Interest rate = 11.25% Future value= ?

Q: You have $1,500 to invest today at 7% interest compounded annually. How much will you have…

A: this future value which is what our investment is worth if invested today at given rate future…

Q: Assume that you make quarterly payments of $ 400 into an annuity paying 6% interest compounded…

A: Future value of annuity formula is: Future value of annuity is calculated in excel with function…

Q: If you deposit Php6500 into an account paying 8% annual interest compounded monthly, how much money…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: You deposit $3000 in an account that pays 88% interest compounded semiannually. After 33 years,…

A: Amount deposited, P = $ 3,000Future value of P deposited in an account offering annual interest rate…

Q: You deposit $1000 each year into an account earning 4% interest compounded annually. How much will…

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

Q: If you invest $2,538.00 in an account earning an annual interest rate of 3.153% compounded…

A: Interest is the fee paid to investor for investing funds over a period of time. It is the…

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 2% interest…

A: Future value (FV) refers to a means of estimating how much an asset or cash's present value (PV)…

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: 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 deposit $6000 in an account earning 7% interest compounded monthly. How much will you have in 15…

A: Time has been precious in all perspectives, however in terms of finance, time has a monetary value.…

Q: Suppose you deposit $125 on the first of every month for 240 months, and the bank credits interest…

A: The term annuity depicts a stream of equivalent periodic cash flows over a specific time duration.…

Q: You deposit $6000 in an account earnings 7% interest compounded monthly. How much you will you have…

A: future value formula: future value = present value×1+RMM×N where, R=rate M=frequency

Q: You deposit $600 each month into an account earning 4% interest compounded monthly. a) How much…

A: The future value of the account can be calculated with the help of future value of annuity function.…

Q: You deposit $300 each quarter into an account earning 5.8% interest compounded quarterly. a) How…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: You deposit $3000 each year into an account earning 8% interest compounded annually. How much will…

A: Future value of annuity is used to calculate the value of streams of cash flows in future at a given…

Q: You deposit $6000 in an account earning 2% interest compounded monthly. How much will you have in…

A: FV is the future worth of cash flow that have occurred in the past or present.

Q: At the end of each quarter, a life insurance client deposits Ph 6,366 for 5 years. If money is worth…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: You deposit $5000 each year into an account earning 3% interest compounded annually how much will…

A: Amount we will have is future value of yearly payments future value is calculated using fv function…

Q: If you have $50,000 in an interest-bearing savings account that pays2 percent annual interest, how…

A: Present value = 50000 Interest rate = 2% Days = 30 Assume 365 days in Year

Q: You

A: An annuity refers to a series of payments made at regular interval of time.

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

You deposit $1,500.00 in an account earning 8.46% interest compounded weekly. How much will you have in the account in 19 years?

Expert Solution

Future value:

It is abbreviated as FV or “Future Value, is the expected amount during the closure at a point in time in the future. It ought to be worth more than the present value, if it is earning interest and increasing after some time.

Calculation of amount in account:

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

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 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
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.
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?
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?