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- 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?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 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.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 expect to have $12,000 in one year. A bank is offering loans at 5.5% interest per year. How much can you borrow today? Today you can borrow $ C.T (Round to the nearest cent.) 6
- K You expect to have $12,000 in one year. A bank is offering loans at 5.5% interest per year. How much can you borrow today? Today you can borrow $ (Round to the nearest cent.) Cyou expect to have $3, 000 in one year. A bank is offering loans at 11% interest per year. How much can you borrow today?You have $100 and a bank is offering 5.0% 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 $ (Round to the nearest cent.)
- 8. You expect to have $8,000 in one year. A bank is offering loans at 4.5% interest per year. How much can you borrow today? Today you can borrow $____ (Round to the nearest cent.)You are going to buy an apartment, and are borrowing 5 000 000 from a bank for 10 years. The interest rate is 3% (APR), the payments are monthly. How much is the EAR that the bank will earn from the loan?Your bank pays 2.6% interest per year. You put $1,400 in the bank today and $500 more in the bank in one year. How much will you have in the bank in 2 years? In two years, the amount that you will have is: (Round to the nearest cent.).