Solve the following problem. If P100,000.00 is invested in a bank at 4.5% simple interest annually, how much interest will the investor get after 5 years?
Q: You plan to borrow $1000 from a bank. In exchange fro $1000 today, you promise to pay $1080 in one…
A: Given: The amount that is planned to borrow today is $ 1000 The amount that is to be paid after one…
Q: Suppose an investment will pay $19,000 in 16 years from now. If you can earn 10.15% interest…
A: Given information: Future value of investment is $19,000 Number of years is 16, Interest rate is…
Q: Suppose an investment will pay $25,000 in 39 years from now. If you can earn 11.05% interest…
A: Calculate the present value as follows: Present value = Future value / (1+rate)^years.
Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?
A: Lets understand, how to solve it. For solving the question, we need to use below formula. = Amount…
Q: Suppose you need to accumulate GHȼ100,000 in 10 years. You plan to make a deposit in a bank now, at…
A: The future value of the growing annuity is the future worth of a cash flow series growing at a…
Q: 1. An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4,…
A: 1)Calculate the present and future value of an investment: Excel workings:
Q: How long would it take $1,000 to double if it were invested in a bank that pays 6% per year?
A: Data given is as follows: Investment (Present Value) = $1000 Investment (Future value) = $1000 * 2 =…
Q: $5,000 deposit, the bank will pay $400 every year in the rate of return of this investment)?
A: Given information : Initial deposit $5,000.00 Annual payment $ 400.00 Since the…
Q: If you were to be promised $10,000 due in one year when interest rates are 5-percent, your…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: You expect to need $1500 in 3 years. Your bank offers 4% compounded semi-annually. How much money…
A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: Suppose that you need to take out a loan today and anticipate being able to pay back $50,000 sixteen…
A: Let the loan amount = X Amount to payback (A) = $50000 n = 16 years
Q: What is the value of $2000after one year, if bank compounding half yearly and offered rate is 10%?…
A: Given: Amount = $2,000 Interest rate = 10% Periods = 1years
Q: ou wish to have an investment that will bring about $50 000 in ten years, and the rate of return is…
A: Future value is defined as the amount that one gets at the end of the maturity period. An investment…
Q: How much will you need to put in the bank today at 4% interest to have P20,000 in five years?
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: You have an investment account that started with $2,000 10 years ago and which now has grown to…
A: Future value is an estimated value of the investment by an investor during period of time. This is…
Q: 1. If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in…
A: Dear Student, as per Bartleby answering guidelines we can answer only the first one if the student…
Q: suppose you have 100 dollars in a saving account and the bank adds 10 percent per year to the…
A: As per Time Value of money, Future value = Present value * (1+rate)^n
Q: Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest…
A: Hi there are multiple questions are posted in this post. As per company guidelines expert can answer…
Q: how many years your money will be doubled?
A: answer :- c) n= 6.12 years given present value PV= 10000 rate r=12% future value FV = 2*10000 =…
Q: How much money should a man invest in a bank account paying 8 percent annual interest compounded…
A: Interest Rate = 8% Continuous Compounding Future Value Required = 20,000 T (Time Period) = 4 years…
Q: A bank projects that the value of an account they hold will be $2, 000, 000 in 5 years. If the…
A: Future value (FV) = $2,000,000 Period (t) = 5 Years Interest rate (r) = 5% Mathematics constant (e)…
Q: How much would your investment be worth if you deposited $5,555.55 into a bank that paid compound…
A: Now, Principal amount invested $ 5555.55 for 10 years at 4% compund interest.Therefore, the formula…
Q: an investor has decided to save 5000 every year growing at a rate of 4.9% per year. the investor…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: How much money should be invested in a financial institution that pays 3.25% simple interest if the…
A: r=3.25%t=5yearsA=450000
Q: How much will $200,000 deposited in an investment account earning an annual interest rate of 8½% be…
A: Given information: Present value $200,000 Annual interest rate is 8.5% Number of years is 1
Q: If you put $850 in a bank today that pays (a) 13% interest per year, how much money could be…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: You have an investment account that started with $4,000 10 years ago and which now has grown to…
A: (a) Holding period return = (Investment at end - Investment at beginning) / Investment at beginning…
Q: If we are investing in an account with an interest rate of 5.7% compounded monthly and we wish to…
A: The amount to be placed in the account today is computed using the present value formula.
Q: How much money should you invest now (to the nearest dollar) in an account that earns interest at a…
A: Future value (FV) = $ 291,000 Interest rate (r) = 8.9% Period (t) = 13 Years Constant (e) = 2.7183…
Q: ered by a bank an interest rate of 6.5% per annum, compounded annually. How much money will the…
A: The given problem can be solved using PV function in excel. PV function computes present worth for…
Q: Suppose you found a CD that pays 2.9% interest compounded monthly for 5 years. If you deposit…
A: 1) FV = PV * (1 + r / m)m*n FV = future value PV = present value = $12,000 r = rate of interest =…
Q: You want to have $10000 in five years. How much should you deposit today if the bank pays 4%…
A: $10000 in 5 Years That is 5*12 months = 60 Months (n) Interest rate 4% annual compounded monthly…
Q: If an investor intends to double $35,000 by investing in a bank that pays 6% interest per year,…
A: Present value = $ 35000 Future value = 35000*2 = $ 70,000 Annual interest rate = 6%
Q: A person would want to have K143.33 in 4 years time by depositing a single cash of K100 in a bank…
A: Compound interest is one of the ways that money invested earns interest. In compound interest, the…
Q: Suppose that you have opened a saving account with an initial deposit of $10,000. The account offers…
A: Initial deposit (P) = $10000 Final amount needed (F) = $15000 n = 10 years Let the annual interest =…
Q: If you deposit 10000 in a bank account that pays 10% interest annually, how much will be in your…
A: The amount in the account after 5 years is future value of the deposited amount. Future value can be…
Q: If you want to have $60,000 in 8 years, how much do you need to deposit in the bank today if the…
A: Here. Required Amount in 8 Years (FV) is$60,000 Interest Rate (r) is 9% Time Period is 8 years
Q: You would like to put some money into an account so that you will have $6000 in the account 13 years…
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: Suppose you save $4,000 per year at the beginning of each year for 10 years and earn 8.5% interest…
A: Hi there! Thank you for the question. Post contains multiple questions. As per company guidelines…
Q: How long would it take $1,000 to double if it was invested in a bank that paid 6% peryear? How long…
A: Note: Since here nothing is mentioned about the type of interest, we will assume it as compound…
Q: Your company wants to have GHS 135,000 four years from now to buy a new machine. As the financial…
A: GIVEN, fv=135,000 N=4 R=12% LET ANNUAL DEPOSIT = A
Q: How much would be in your savings account in 11 years after deposting $150 today if the bank pays 8…
A: Given: Present value (PV) = $150 Rate of interest (r) = 8% = 0.08 Number of years (n) = 11
Q: 4. If Andy borrows R350 today at CBD Bank at 15% interest rate per annum, how much will have to be…
A: Solution:- When someone borrows an amount from bank, the bank charges interest on it. Therefore,…
Q: How much would be in your savings account in 7 years after depositing $100 today if the bank pays 5…
A: Using excel FV function
Q: At time 0 you had $2500 in the bank and 21 years later you had $15650. Calculate the effective…
A: Effective interest rate can be described as the interest rate gained or paid in actual on a project.…
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Solved in 3 steps
- 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?Suppose your bank account will be worth $4,200.00 in one year. The interest rate (discount rate) that the bank pays is 5%. What is the present value of your bank account today?
- How much will you need to put in the bank today at 4% interest to have P20,000 in five years? PROVIDE SOLUTIONExample 1. Your company wants to have GHS 135,000 four years from now to buy a new machine. As the financial manager of the company, you've just deposited GHS 45,000 today into a new bank account for saving towards the new machine. What equal amount must the company deposit each year in order to achieve it target if the GHS 45,000 deposited today and the annual deposits can earn an interest of 12% per year?How long it would take tk 150000 to double if it was invested in a bank at 6.5% interest rate?
- Suppose an investment will pay $21,000 in 29 years from now. If you can earn 11.35% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?The customer is offered by a bank an interest rate of 6.5% per annum, compounded annually. How much money will the customer have to invest with this bank now to achieve his goal of R300 000 in 10 years’ time?How much will you need to put in the bank today at 4% interest to have P20,000 in five years?
- Calculate time value of money : If I am to receive $10k in 5 years, given a 5% rate of return, what would be the present value of this amount? If I put $7k into the bank @ 3% interest for 10 years, what is the future value of this amount?5. You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The amount of money in your savings account in a given year can be modeled by the following function. P(t)=100(10)^.009 a. Evaluate P(0) and explain what it means in this context. b. Approximately how many years will it take for the amount of money in your bank account to reach $120? c. What year will you have $120 in your savings account?If a financial planner promised to pay you $100000 a year forever, what is the maximum amount of money you would pay him today if the interest rate in the market is 5%?