You invest in a bank $5,000 at beginning of every 6 months. How much will you get if you withdraw investment after 5 ye (Interest rate is 12 %) (round to whole number) A. 65,905 B. 28,185 C. 31,765 D. 50,000 OD

You invest in a bank $5,000 at beginning of every 6 months. How much will you get if you withdraw investment after 5 ye (Interest rate is 12 %) (round to whole number) A. 65,905 B. 28,185 C. 31,765 D. 50,000 OD

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 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

See similar textbooks

Related questions

Q: What is a sales budget? a. A plan of items to be sold b. A plan of how much an item will cost c. A p...

A: Sales budget is an important budget prepared by the management of the organization.

Q: Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at a...

A: Here, Cost of Debt (rd) is 9% Weight of Debt is 35% Weight of Equity is 65% Dividend (D0) is $1.85 G...

Q: An Australian firm asks the bank for an AS/SFr quote because it received SFr and wants to change it ...

A: Calculate the ask rate of US$/SFR by dividing 1 by the bid rate of SFR/US$ which is 1.4950. Thus, t...

Q: Which of the following is a type of captive formed to write most types of liability insurance covera...

A: A captive insurance firm is a special arrangement for insurance, which is a subsidiary insurer to mi...

Q: PS #2 Type A: Brite Events has been growing at a rate of 204 per year, and you expect this growth ra...

A: Given: Risk free rate 3% Market risk premium 6% Beta 2

Q: A five-month, 5% note for $2100 is issued June 1, 2020. What is the maturity value of the note?

A: Issue price = $2100 Interest rate = 5% Period = 5 Months

Q: Discuss the various uses for break-even analysis?

Q: Discuss the dangers of ignoring the impact of business decisions on the full range of stakeholders, ...

A: In every business decision making is most important thing for the business continuity. Business need...

Q: If an invoice indicates that interest at the rate of 0.69% per month will be charged on overdue amou...

Q: a) What are x and y? b) What are the cumulative repricing gaps for 1 month (CGAP1-month), 3 months (...

A: Since you have posted a question with multiple sub parts therefore, as per the guidelines we will b...

Q: 5.0 4.0 Nominal Interest Rate 3.0 2.0 Real Interest Rate 1.0 -1.0 2.0 -3.0 2003 2004 2005 2006 2007 ...

Q: Saved An initial $3300 investment was worth $3820 after two years and six months. What quarterly com...

A: An interest rate method in which current interest is computed by multiplying the interest rate by th...

Q: Conn Man’s Shops, a national clothing chain, had sales of $440 million last year. The business has a...

A: To meet the business financial needs and operate the business, companies raise the funds from extern...

Q: 6. You want to have $4000 in your savings account after 2 years. Find the amount you should deposit ...

Q: mpute for the NET PRESENT VALUE of the following project. You found that opening your own cake shop ...

A: Net present value is the difference between the current worth of cash inflows and withdrawals over a...

Q: What is the expected return on a portfolio that will decline in value by 10% in a recession, will in...

A: Expected return of portfolio is weighted average return on all possible situations of economy.

Q: A} 3.99 % {B} monthly {C} $ 145,399.00 {D} $ 163...

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for yo...

Q: can be progressively eliminated by adding stocks to a portfolio? Systematic risk Specific risk Marke...

Q: You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent...

A: Data given:: Amount = $5000 Regency Bank offers = 15% compounded monthly (15%/12 = 1.25%) King Bank ...

Q: You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks, b...

A: Here we will have to formulate a linear program (LP) and then solve the problem using the solver fun...

Q: Hanie Najwa needs to borrow RM5,000 for one year. • Option A: She is offered a loan at an effective...

Q: Ultravision Inc. anticipates sales of $460,000 from January through April. Materials will represent ...

A: Cashflows means movement of cash, it can be positive or negative. Positive cashflows means cash infl...

Q: Find the present value of a deferred annuity of P30000 every three months for 3 years that is deferr...

A: a. Determine the value of the fund after 1 year using the Excel PV function with the following input...

Q: A. find the monthly payment of an ordinary if the present value is P18,500 with an interest rate of ...

A: A) Present value of annuity = P 18500 Interest rate = 10% quarterly compounded n = 6 years = 72 mont...

Q: rong form efficient eak form efficient and S

A: Step 1 Strong form performance is a very strong version of the efficient market hypothesis (EMH) inv...

Q: A 10-year bond has a coupon of 3% and a DV01 of 8. What is the present value of just the principal?

Q: Examples of Current liabilities includes accounts payable, accruals and other short-term liabilities...

A: Current Liabilities are the liabilities (payments) that the company has to pay within a year. These ...

Q: LAST YEAR ABC CO MADE PROFITS BEFORE TAX OF $2628000. TAX AMOUNTED TO $788000 ABC COMPANY SHARE CAPI...

A: Profit before tax = $2628000 Tax = $788000 Shares outstanding = 2000000

Q: Suppose you observe the following exchange rates: €1 = $1.45; £1 = $1.90. Calculate the euro-pound e...

Q: The future earnings, dividends, and common stock price of Callahan Technologies Inc. are expected to...

A: As you have asked question with multiple parts , we will solve the first 3 parts as per the policy p...

Q: Core Principle 3 states information is the basis for decisions. Suggest one way in which the problem...

A: The word "shadow bank" was first used in the United States just before the global financial crisis o...

Q: What are the different sources of financial capital available to entrepreneurs? Discuss the advantag...

A: Sources of Financial Capital for Entrepreneurs are Equity share capital, preference share capital, p...

Q: An investment of 7,500,000 is expected to produce the following cash flows including decommissioning...

A: Discount Rate = 7.5% Cash Flows: Year Cash Flow 0 -7,500,000.00 1 1,750,000.00 2 2,250,000....

Q: A decrease in the will cause an increase in common stock value. O A. growth rate O B. required rate ...

A: Value of the common stock depends upon following parameters: a) Last dividend b) Growth rate c) Requ...

Q: For your area finance evaluate how appropriate the executive performance measures and incentives are...

A: The question is based on the concept of performance link incentives for top-level managers. The exec...

Q: b) Herman bought a terrace house at RM650,000. He paid a 10% down payment and the balance was financ...

A: Calculate the present value of the loan taken by multiplying the purchase value which is RM650,000 w...

Q: Financial markets promote economic efficiency by * A.channeling funds from investors to savers. B. c...

A: Answer - The financial system performs the essential economic function of channeling the funds o...

Q: An investment that will give you monthly payments for 14 years costs $146,897. If your required retu...

A: An annuity is a series of cash flows that involve equivalent periodic amounts at equal time interval...

Q: Briefiy explain (in one or two sentences) what the meaning is of the SFr/AS bid rate that you calcul...

A: Foreign Exchange rates: The value of one currency vis-vis another currency is known as the foreign e...

Q: It is possible to ignore cash dividends that occur very far into the future when using a dividend di...

A: Using dividend discounting model, we can find the value of the share at present. This method is used...

Q: I met Mr. Talagitok a year ago and he told me that he had invested a hundred thousand dollars in a b...

A: The question is based on the application of the time value of money, the value of money increases wi...

Q: DISCUSS WHY ESTIMATING THE VALUE FOR A BOND IS EASIER THAN ESTIMATING THE VALUE FOR COMMON STOCK.

A: Stocks are known as equity securities in finance because they make the holder a part owner of the co...

Q: r creates a bear spread by selling a six-month put option with a $25 strike price for $2.15 and buyi...

A: Call gives the the opportunity to buy and put give opportunity to sell the stock. Both give the both...

Q: Repaying a Loan While Mary Corens was a student at the University of Tennessee, she borrowed $9,000...

A: Loan repayment is the process by which loan taken is returned to the lender with applicable interest...

Q: A family purchased a house with a 15 year mortgage at 7.375% compounded monthly. The monthly payment...

A: Mortgage are the loan which is taken by the individual to meet its financial requirements. The mortg...

Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabiliti...

Q: A credit union's Rate-Climber GIC pays rates of 21%, 26%, and 3.1% compounded semiannually in succes...

A: Given: Present value = $13,000 Interest rates: Year 1 = 2.1% Year 2 = 2.6% Year 3 = 3.1%

Q: If the net income after tax of the company is P4,000,00O, starting balance of assets is P500,000 and...

A: "Since you have asked multiple question, we will solve the first question for you.If you want any sp...

Q: It is now January 1. You plan to make a total of 5 deposits of $600 each, one every 6 months, with t...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

Q: How much should an investor be willing to pay now for 10%, P 50, 000.00 bond that will mature in 25 ...

A: Given: Face Value of bond = 50,000 N = 50 semi annual periods (25 years) Interest rate = 12%/2 = 6% ...

Question

Handwritten only

You invest in a bank $5,000 at beginning of every 6 months. How much will you get if you withdraw investment after 5 yea
(Interest rate is 12 %) (round to whole number)
A. 65,905
B. 28,185
C. 31,765 D. 50,000
OD
OB

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

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.
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?
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?
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%