Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134476315
Author: Chad J. Zutter, Scott B. Smart
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 5, Problem 5.18P
Learning Goal 2
P5-18 Calculating deposit needed you put $10,000 in an account earning 5%. After 3 years, you make another deposit into the same account. Four years later (that is, 7 years after your original $10,000 deposit), the account balance is $20,000. What was the amount of the deposit at the end of year 3?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Answer in excel2. Suppose another graduating student also has a financial plan with regard to starting his business. He intends to borrow $25,000 from his family and friends at the end of this year to start his business. He believes his business will earn $5000 after expenses one year after it begins, another $7000 after expenses the following year, $10,000 after expenses in each of the next , two years, and $3000 in the last year before it closes. Using a 4% annual interest discount rate, determine the net present value of this investment.
Please show in excel 2. Suppose another graduating student also has a financial plan with regard to starting his business. He intends to borrow $25,000 from his family and friends at the end of this year to start his business. He believes his business will earn $5000 after expenses one year after it begins, another $7000 after expenses the following year, $10,000 after expenses in each of the next , two years, and $3000 in the last year before it closes. Using a 4% annual interest discount rate, determine the net present value of this investment.
3. You have just received an email inviting you to accept a new credit card that offers you a $12,000 credit limit based upon your FICO score. You realize you can use that card now to charge your long overdue upscale vacation, which will cost $7500. The introductory terms of your new card indicates that no payment is due for the next two years, and the amount due will be charged a low 3% every month until you repay. Assuming you wait the full…
A person deposits $500 into an account that earns 4.75% annually. If no oth are made, how much interest will the account have earned after 12 years? CCESS Virtual Learning 2022
Chapter 5 Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Ch. 5.1 - What is the difference between future value and...Ch. 5.1 - Define and differentiate among the three basic...Ch. 5.2 - Prob. 5.3RQCh. 5.2 - Prob. 5.4RQCh. 5.2 - Prob. 5.5RQCh. 5.2 - Prob. 5.6RQCh. 5.2 - Prob. 5.7RQCh. 5.3 - What is the difference between an ordinary annuity...Ch. 5.3 - What are the most efficient ways to calculate the...Ch. 5.3 - How can the formula for the future value of an...
Ch. 5.3 - Prob. 5.13RQCh. 5.3 - What is a perpetuity? Why is the present value of...Ch. 5.4 - How do you calculate the future value of a mixed...Ch. 5.5 - What effect does compounding interest more...Ch. 5.5 - Prob. 5.21RQCh. 5.5 - Differentiate between a nominal annual rate and an...Ch. 5.6 - How can you determine the size of the equal,...Ch. 5.6 - Prob. 5.27RQCh. 5.6 - How can you determine the unknown number of...Ch. 5 - Learning Goals 2, 5 ST5-1 Future values for...Ch. 5 - Learning Goal 3 ST5-2 Future values of annuities...Ch. 5 - Prob. 5.3STPCh. 5 - Learning Goal 6 ST5-4 Deposits needed to...Ch. 5 - Assume that a firm makes a 2,500 deposit into a...Ch. 5 - Prob. 5.2WUECh. 5 - Prob. 5.3WUECh. 5 - Your firm has the option of making an investment...Ch. 5 - Joseph is a friend of yours. He has plenty of...Ch. 5 - Jack and Jill have just had their first child. If...Ch. 5 - Prob. 5.1PCh. 5 - Learning Goal 2 P5-2 Future value calculation...Ch. 5 - Prob. 5.4PCh. 5 - Prob. 5.5PCh. 5 - Learning Goal 2 P5- 6 Time value As part of your...Ch. 5 - Learning Goal 2 P5-7 Time value you can deposit...Ch. 5 - Learning Goal 2 P5-8 Time value Misty needs to...Ch. 5 - Learning Goal 2 P5- 9 Single-payment loan...Ch. 5 - Prob. 5.10PCh. 5 - Prob. 5.11PCh. 5 - Prob. 5.12PCh. 5 - Prob. 5.13PCh. 5 - Time value An Iowa state savings bond can be...Ch. 5 - Time value and discount rates You just won a...Ch. 5 - Prob. 5.16PCh. 5 - Cash flow investment decision Tom Alexander has an...Ch. 5 - Learning Goal 2 P5-18 Calculating deposit needed...Ch. 5 - Future value of an annuity for each case in the...Ch. 5 - Present value of an annuity Consider the following...Ch. 5 - Learning Goal 3 P5-21 Time value: Annuities Marian...Ch. 5 - Learning Goal 3 P5-22 Retirement planning Hal...Ch. 5 - Learning Goal 3 P5-23 Value of a retirement...Ch. 5 - Learning Goal 2, 3 P5-25 Value of an annuity...Ch. 5 - Prob. 5.26PCh. 5 - Prob. 5.30PCh. 5 - Learning Goal 4 P5-31 Value of a single amount...Ch. 5 - Value of mixed streams Find the present value of...Ch. 5 - Prob. 5.33PCh. 5 - Prob. 5.34PCh. 5 - Prob. 5.36PCh. 5 - Prob. 5.37PCh. 5 - Changing compounding frequency Using annual,...Ch. 5 - Prob. 5.39PCh. 5 - Prob. 5.40PCh. 5 - Compounding frequency and time value You plan to...Ch. 5 - Learning Goals 3, 5 P5-42 Annuities and...Ch. 5 - Prob. 5.43PCh. 5 - Prob. 5.44PCh. 5 - Prob. 5.45PCh. 5 - Prob. 5.46PCh. 5 - Prob. 5.47PCh. 5 - Loan amortization schedule Joan Messineo borrowed...Ch. 5 - Prob. 5.49PCh. 5 - Prob. 5.50PCh. 5 - Prob. 5.52PCh. 5 - Prob. 5.53PCh. 5 - Prob. 5.54PCh. 5 - Prob. 5.55PCh. 5 - Prob. 5.56PCh. 5 - Prob. 5.57PCh. 5 - Number of years needed to acccumulate a future...Ch. 5 - Prob. 5.59PCh. 5 - Prob. 5.60PCh. 5 - Time to repay Installment loan Mia Saito wishes to...
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
- A college savings fund is opened with a $12,000 deposit. The account earns 6.55% annual interest compounded continuously. What will the value of the account be in 18 years? $26,704.29 $38,704.29 $27,013.46 $39,013.46 . By formula only please correct ansarrow_forwardYou borrowed $10,000 from a bank to invest in IT & Mobile technology with payback the loan in graduated payment plan. If your first payment is $1,000 at the end of first year and i=10% over 5 years. Note: (P/G, 10%, 5) = 6.86 Q/Find the total earned interest by the bank at the end of period?arrow_forwardShow complete solution. Don't use excel for solution. You need P50,000 per year for four years to go to college. Your father invested P12000 per year in a 10.120% account for your education starting from the year you were born until you were 18. If you withdraw the P50,000 at the end of your 19th, 20th, 21st, and 22nd years to aid you in your college years, how much money will be left in the account at the end of your last withdrawal?arrow_forward
- Problem 1: The Happy Toddlers The Happy Toddlers is a preparatory school for children three to five years old. Students are enrolled for a school-year. Parents can pay the full tuition fee of 70,000 at the start of the school year (June). There is also an option to pay two installments of 37,000 each at the start of every semester (June 1 and November 1). Of the 150 students enrolled, 80 are paid in full at the start of the year. The remaining students are on installment basis. One school year runs from June 1 to March 31. Determine the tuition fee revenue for the period December 31. This is the first year of Happy Toddlers operations.arrow_forwardSt. Thomas University (STU) plans to build an addition to the Gus Machado School of Business 4 years from today. It will need to have $8 million in an account at that time. It would like to make 4 equal annual deposits, starting 1 year from today, into an account earning 4% per year to meet this need. What is the amount of each deposit STU must make to meet this need?arrow_forward3. You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded 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. Year Year Beginning Balance Interest Year End Balance 1 $250.00 ? ? 2 ? ? ? 3 ? ? ? 4 ? ? ? 5 ? ? ? PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the future value of $1 table in the Appendix B PV FV Tables Appendix B PV FV Tablesand verify that your answer above is correct. Present Value (PV) PV FV Factor Future Value (FV) ? ? ? PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).arrow_forward
- a principal amount of $600 was invested at 5% interest. in this lesson, recalculate the interest earned and value of the account, this time calculating the next year's interest on the entire value of the account (including previously earned interest), rather than just on the principal amount. Compute the amount of interest earned during the second year if that amount is 5% of both the principal amount of $600 AND the $30 in interest that was already earned in the first year. Find the new ending value as well. Show work, please.arrow_forwardTime Value of MoneyQuestion 1:Your friend John started college at the age of 18 with $63,450 already saved, because 18 years ago when he was born, his parents placed money into a special college savings account earning 7.25% per year. How much money did John’s parents place into his college account? How if the rate is 10% instead?Net Present Valuearrow_forwardMay I ask for an explanation and solution to the question for a better understanding. Thank you! 4. You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive? a. P1,999.00 b. P1,439.45 c. P250.25 d. P1,126.16arrow_forward
- 3. Need help with finance homework. Assume a discount rate of 6.75%. You are planning to receive payments annually (at end of year) for the next 6 years. The first payment's amount will be $12,000. Each subsequent payment will increase by 2.2%. What is the present value of these payments you are planning to receive?arrow_forwardQuestion 1 You borrow $50,000 for 5 years. This is an amortized load, meaning that payments are the same each month, and the loan is fully paid off with final payment. The quoted interest rate (or APR) is 12% per year. What is the beginning balance, Payment, Interest, Principal and Ending Balance in months 10 and 25? Enter all the necessary information in an Excel spreadsheet as the example in class, by entering the right formulas in each column. Also copy and paste the final table from Excel in a word document and attach it with your answer.arrow_forward6. After graduation, you and a few business partners begin a small business. The first year, earn a profit of $10,000. Your profit increases by 12% each year. As a team, you and your business partners have decided to invest all of your profits into an account that you will use to fund a business expansion. Money in the account earns 6% compound annual interest. Use this information to answer the following questions. a. How much would be available in the account at the end of 10 years to fund business expansion? (please explain how to solve this in steps using formulas and showing how :)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
5 Steps to Setting Achievable Financial Goals | Brian Tracy; Author: Brian Tracy;https://www.youtube.com/watch?v=aXDuLxEJqBo;License: Standard Youtube License