You deposit $300 in an account earning 5% coumpound interest for 4 years. Find the future value and the interest earned for each of the following compounding frequencies. Use the Bankers' Rule for daily compounding. Future Value Interest Earned Frequency (a) Annually: b) Semiannually: ) Quarterly: d) Monthly: Ce) Daily:

Q: e future value and the interest earned

A: Future value refers to the amount of the current asset at some future date based on the assumption…

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: Equal – quarterly deposits of P 2,000 for 2 years which starts immediately is made at a savings…

A:

Q: A mortgage of $100,000 is amortized over 20 years with monthly payments. The interest rate is 6%…

A: Amortization is the process of writing off the initial cost or the total cost of an asset.…

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: Suppose that you have borowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the…

A: Loan Repayment Calculation of the loan repayment is some what complicated and need to know the fact…

Q: You deposited P5,000 from the savings of your daily allowance in a time deposit account with your…

A: SIMPLE INTEREST FORMULA: INTEREST =P×R×T where, p=principal R=  interest rate T= time in years total…

Q: One year from today you must make a payment of $4,000. To prepare for this payment,you plan to make…

A: Excel Spreadsheet: Excel Workings:

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: Harry Morgan plans to make 30 quarterly deposits of P200 into a savings account. The first deposit…

A: Solved using Financial Calculator  N= 30 (7.5 * 4 = 30) I/Y = 8/4 = 2 PMT = 200 CPT FV = 8113.62

Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…

A: The present value (PV) is $39,000. The number of compounding periods (n) is 8 (2 * 4). The quarterly…

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…

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A: Present Value(PV) is current value of any future amount. It is calculated by discounting that future…

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: You have taken a loan of $76,000.00 for 22 years at 5.2% compounded quarterly  1st-3rd month…

A: Payment refers to the periodic payments which are made in lieu of repayment of a loan. Payment…

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: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

Q: You deposit $300 in an account earning 5% coumpound interest for 4 years. Find the future value and…

A: Future value can be using following in excel   FV (rate, nper, pmt, [Pv], [type]) Rate The interest…

Q: You deposit $300 in an account earning 5% coumpound interest for 4 years. Find the future value and…

A: Note: Since Part c) is specifically asked to solve among multiple subparts, so we will solve the…

Q: Suppose you invest $1,000.00 in an account with an annual interest rate of 6% compounded monthly…

A: To complete this table we have add simple interest on ending balance and then add deposit balance to…

Q: Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: You deposit $400 in an account earning 8% coumpound interest for 2 years. Find the future value and…

A: Given That: P=$400 r=0.08 t=2 years

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: 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: An amount of $8,430 is deposited into an account earning 7% interest compounded quarterly. How much…

A: There are different types of accounts which an individual can open in a bank. It can be a savings…

Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: You deposit $300 in an account earning 5% coumpound interest for 4 years. Find the future value and…

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

Q: What amount must be deposited at the bank today to grow to $600 in 4 years, assuming 10% interest…

A: Amount means the sum to be received after few year with interest. Principal means the sum to be…

Q: For the given principal, interest rate, and time period, determine the amount of interest that would…

A:

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: Suppose that $3000 is deposited in a saving account at the rate of 8% per year. Determine in details…

A: Given data,                 Principal (P)  = $3000             Interest rate (r) = 8% per year…

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: You deposit $100 in an account earning 4% coumpound interest for 5 years. Find the future value and…

A: Future Value: It represents the future worth of a present amount and is estimated by compounding…

Q: Find the future value and the interest earned for each of the following compounding frequencies.

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: You deposit $500 in an account earning 7% compound interest for 3 years. Find the future value and…

A: In order to find the future value and interest earned one has to take help from excel and use…

Q: Determine the value at the end of three years of a $10,000 investment (today) in a bank certificate…

A: The formula to calculate future value is given below:

Q: Your bank account pays a nominal interest rate of 8%, compounded quarterly. You deposit $500 in the…

A: Here, Deposit today is $500 Deposit at the end of first year is $1,000 Interest Rate is 8%…

Q: You deposit $300 in an account earning 5% coumpound interest for 4 years. Find the future value and…

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

Q: You are  planning to start a business in 5 years. You have decided to deposit  Shs. 400,000 in a…

A: As the amount is required in future, future value formula will be used to calculate the amount…

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: Use the appropriate formula to find the future value (in $) of $700 deposited at the beginning of…

A: Future Value or Compounded Value is worth of either one single amount at any future date or a series…

Q: You deposit st, 100 in a 2-year certificate of deposit (CD) earning 2.2% annual interest compounded…

A: Compound interest is the interest calculated upon original principal and interest cumulated from…

Q: An engineer deposits $830 per month into a savings account that pays interest at a rate of 10% per…

A: The future value of an annuity is the future worth of a series of cash flows at a certain rate of…