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- 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?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?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?
- You expect to have $1000 in one year. A bank is offering loans at 6% interest per year, how much can you borrow today?If you want to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%?You expect to have it $12,000 in one year. A bank is offering loans at 3.5% interest per year. How much can you borrow today? Today you can borrow $_____(round to the nearest cent)
- How much would be in your savings account in 11 years after deposting $150 today if the bank pays 8 percent per year?If you deposit $8,000 in a bank account that pays 7% interest annually, how much will be in your account after 15 years? If you deposit $4,000 in a bank account that pays 8.6% interest annually, how much will be in your account after 3 years? If you deposit $1,000 today, and $1,500 every year, in a bank account that pays 4% interest annually, how much will be in your account after 23 years? If you deposit $14,000 in a bank account that pays 3.7% interest annually, how much will be in your account after 5 years? If you deposit $13,000 in a bank account that pays 13% interest annually, how much will be in your account after 13 years? If you deposit $7,500 today, and $2,000 every year, in a bank account that pays 2.8% interest annually, how much will be in your account after 35 years?You have $300 and a bank is offering 5.5% interest on deposits. If you deposit the money in the bank, how much will you have in one year? In one year you will have $____.
- You want to buy a car, and a local bank will lend you $33,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 13%, with interest paid monthly. What is the monthly loan payment? What is the loan’s EFF%?Your bank will pay you an interest rate of 0.102% per week. You want to have $22, 500 in 10 years. How much will you have to deposit today? Assume 52 weeks per yearHow much do you have to invest today in a savings account that returns 6.5% interest, compunded annually, to get $25,300 at the end of 10 years?
