7. If you want to collect ¢ 5,000,000 in 4 years and for this you make deposits every end of the month in the local bank that pays 18% interest compounded monthly. After 3 years, the bank lowers the interest to 15%. What is the value of each deposit, before and after the change in the interest rate?
Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 7.2%,…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
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: Suppose an individual makes an initial investment of $2,200 in an account that earns 7.8%,…
A: An individual investor made deposits initially and continues to invest on monthly basis for 12…
Q: the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of…
A: The future value of annuity due is the total future value of each cash flow which is made at the…
Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…
A: The future value of a present sum of money after n periods is given by the formula Future…
Q: If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a…
A: Ordinary Annuity means a series of equal payments that are made over a fixed length of time at the…
Q: A bank is offering 10% compounded quarterly. If you put $200 in an account, how much will you have…
A: Step 1 The worth of a series of periodic payments at a future date, assuming a specific rate of…
Q: You deposit $4,000 today in a bank that promises to pay an annual interest of 8%? a. What is future…
A: (1) (a.) FV =PV*(1+r)^n =4000*(1+8%)^12 =10072.68 (b.) If rate =8% with monthly compounding FV…
Q: Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank…
A: Amount at the end of 4 years = 24000 Total Terms(n) = 4*4 = 16 quarters Anbuak rate =6% Quarterly…
Q: 1. First City Bank pays 7 percent simple interest on its savings account balances, where Second City…
A: 1) Simple interest rate of First City Bank (r) = 7% Compound interest rate of Second City Bank (i) =…
Q: 3. You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more…
A: Time period for a present value to accumulate to future value is calculated by NPER function in…
Q: You just deposited $3,500 in a bank account that pays a 4.0% nominal interest rate, compounded…
A:
Q: Suppose an individual makes an initial investment of $2800 in an account that earns 7.8%. compounded…
A: Given information: Initial investment is $2,800 Interest rate is 7.8% Number of periods is 12 made…
Q: Commercial bank pays 12% interest and compounds quarterly. If 1000 are initially, how much shall it…
A: Computation:
Q: Second Union Bank pays 5 percent simple interest on its savings account balances, whereas Third…
A: In simple interest there is no interest on interest only simple interest is considered.
Q: 1. If PS00,000 is deposited at rate of 11.25% compounded monthly, determine the compounded interest…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: a) How much is in the account after the last deposit is made? (b) How much was deposited (c) What…
A: In order to find the following questions, one needs to use excel and apple functions like PMT, FV…
Q: It is now January 1. You plan to make a deposit of GHȼ100 each, one every 6 months, with the first…
A: The future value is the amount that will be received at the end of a certain period. In simple…
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: Suppose an individual makes an initial investment of $1,600 in an account that earns 8.4%,…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Supposed you deposited rm5000 in a bank account that pays 5.25%with daily compounding based on a 360…
A: Principal (PV)=5000, Interest rate (rate)=5.25%, compounding daily. time period = 8 months, Total…
Q: It is now January 1. You plan to make a total of 5 deposits of $600 each, one every 6 months, with…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more…
A: Interest is an additional amount which is earned on deposited amount for the period. It increases…
Q: Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank…
A: Amount at the end of 4 years = 24000 Years = 4 Terms(n) = 4 *4 = 16 quarterly deposits Rate (r) = 6%…
Q: Hamilton wants to accumulate $170.000 at the end of 4 years. It starts quarterly payments in a bank…
A: in this you have to find out future value FACTOR and find quarterly payment.
Q: A bank deposit of P10,000 earns 3.5% pa compounded quarterly. If inflation is at 5% per year, what…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose…
A: Here Investor has $8,675,309 to deposit for 1 year @ 12% in two options: Compounded annually…
Q: how much do you need to deposit now in a bank paying 6% interest compounded monthly if you want to…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: 1. The Lexington Property Development Company has a RM10,000 note receivable from a customer due in…
A: Present value is the value of an investment in today’s time. It helps to make decisions better.
Q: You plan to make 15 annual deposits in a saving account that pays 6% interest compounded annually.…
A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…
Q: Suppose that you make 12 equal annual deposits of Php 2,000 each into a bank account paying 8%…
A: Annual deposit (P) = Php 2,000 Annual interest rate (R) = 8% Number of annual deposit (N) = 12
Q: You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded…
A: Deposit amount (PV) = $ 1000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…
Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: I. Hamilton wants to accumulate ₺30000 at the end of 4 years. It starts quarterly payments in a bank…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: It is now January 1, 2x16, and you will need P100,000 on January 1, 2x20. Your bank compounds…
A: In this question, we are required to find the accumulated value of funds deposited todayz which is…
Q: Hamilton wants to accumulate ₺ 35000 at the end of 4 years. It starts quarterly payments in a bank…
A: The question is based on the concept of annuity method of cash flow for future value approach.…
Q: Suppose that you deposit $750 into a bank account today. If the bank pays 8 percent APR per year,…
A:
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: 1. If P5,000 is invested in a time-deposit for 2 years in a bank that offers 4% annual interest…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: 1. At the beginning of each quarter, P36,000 is deposited into savings account that pays 6%…
A: Honor code: Since you have asked multiple questions, we will solve the one question for you. If you…
Q: To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9720. What annual…
A: future value = $10000 Mature time = 6 months or 6/12 Principal = $9720 interest amount = future…
Q: Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but…
A: In order to take investment decisions, the investor will look forward for evaluation. The evaluation…
Q: 6. A consumer loan worth 83,000 pesos is to be repaid in 18 months at 8% convertible monthly. How…
A: Here, Details of Ques-6: Mortgage Amount (P) is 83,000 pesos Interest Rate (r) is 8% Compounding…
Q: 3 A bank account pays 5 % annual interest compounded semiannually. How much money should be…
A: Following is the answer to the question
Q: 4. You plan to deposit P2, 500 in the bank now and another P2, 500 after 2 years. After four years…
A: Deposit in year n = Dn Withdrawal in year n = Wn D0 = P 2500 D2 = P 2500 W6 = P 6500 We need to find…
Q: Hamilton wants to accumulate ₺ 100.000 at the end of 4 years. It starts quarterly payments in a bank…
A:
Q: Starting in 3 years, you want to be able to withdraw P7,308 every three months for 8 years. You want…
A: Quarterly amount to withdraw (Q) = P 7308 n = 8 years = 32 quarters Interest rate = 5.25% monthly…
7. If you want to collect ¢ 5,000,000 in 4 years and for this you make deposits every end of the month in the local bank that pays 18% interest compounded monthly. After 3 years, the bank lowers the interest to 15%. What is the value of each deposit, before and after the change in the interest rate?
Step by step
Solved in 2 steps
- 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.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?If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a function f (r) of the interest rate, r%. At 7% interest (compounded monthly), f (7) = 2568.10 and f (7) = 25.06. Approximately how much additional money would you earn if the bank paid 7 1/2 % interest?You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more than $8000 if a. The account pays 5 percent actual interest every half-year and is com- pounded every half-year? b. The account pays 5 percent nominal interest, compounded semiannually?
- 1. You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit? 2. FNB pays 6% interest compounded semi-annually. SNB pays 6% compounded monthly. Which bank offers the higher effective annual rate? 3. You deposit PHP1, 000 in your bank account. If the bank pays 4% simple interest, how much interest will you accumulate in your account after 10 years?. a. What if the bank pays compound interest? 4. Mr. Sotto won PHP10 million in the lottery. He was very excited to collect his winnings and had several plans for his PHP10 million. He would buy his dream house, car, and a lot more. However, he was very disappointed when the officers from PCSO said that he will not get his PHP10 million pesos upfront. He, however, has the following options: Get 8.1 million upfront Receive 1 million every year for 10 years Receive 1.8 million every year for 5 years a. The current government bonds have a yield of 5% per annum. Which is the best option?…A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits P10,000 and make no withdrawal for three years what is the interest earned in that period of time? A person borrow P100,000 for a period of 6 months. What simple interest rate is being charged if the amount A that must be paid after 6 months is P104,500?K You plan to deposit $700 in a bank account now and $100 at the end of the year. If the account earns 7% interest per year, what will be the balance in the account right after you make the second deposit? ... The balance in the account right after you make the second deposit will be $ (Round to the nearest dollar.)
- You plan to deposit S500 in a bank account now and S400 at the end of the year. If the account earns 4% interest per year, what will the balance be in theaccount right after you make the second deposit?If you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the interest rate is 9.42% and is computed quarterly. Select one: a. 3344.46 b. 7744.46 c. 6644.46 d. 2244.46 If you deposit OMR 27177 in your account in a bank. Suppose the bank pays 12% compound interest quarterly. Calculate value of your money in 4 years Select one: a. 166607.80 b. 43611.11 c. 16935.81 d. 42749.42 e. All the given choices in this question are not correct The company has made an investment in government bonds. The bonds will generate an interest income of OMR 20661 each year for 6 years. The interest rate is 12% annually. Compute present value of the stream of interest income for 6 years. Select one: a. 64284.79 b. All the given choices in this question are not correct c. 105606.79 d. 84945.79 e. 5025.29 Abdullah deposits OMR 23422 at the end of every year for 4 years and the deposit earns a compound interest of 3% per annum. Calculate the amount at the end of…You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to make 10 equal end of-year payments to pay off the loan. a) What is the amount of these equal payments? b) What is the amount of the 10 payments if the first payment is not made until 3 years after receipt of the money?
