5.5: Calculating compound interest with non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Account Holder Amount Deposited Annuel Interest Rate Compounding Compounding Periods per Year (m) Periods (years) Theodore Logan III $1,000 10% 1 10 Vernell Coles 95,000 12 12 1 Tina Elliot Wayne Robinson Eunice Chung Kelly Cravens 8,000 12 6 2 120,000 8 4 2 30,000 10 15,000 12 23 2 4 3 3

5.5: Calculating compound interest with non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Account Holder Amount Deposited Annuel Interest Rate Compounding Compounding Periods per Year (m) Periods (years) Theodore Logan III $1,000 10% 1 10 Vernell Coles 95,000 12 12 1 Tina Elliot Wayne Robinson Eunice Chung Kelly Cravens 8,000 12 6 2 120,000 8 4 2 30,000 10 15,000 12 23 2 4 3 3

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 36P

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Related to Checkpoint 5.3) (Compound interest with non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Account Holder Amount Deposited Annual Interest Rate Compounding Periods Per Year (M) Compounding Periods (Years) Theodore Logan III $ 1,100 18 % 4 6 Vernell Coles 95,000 8 2 2 Tina Elliot 9,000 8 1 5 Wayne Robinson 119,000 12 3 4 Eunice Chung 30,000 18 6 6 Kelly Cravens 14,000 12 12 5
(Related to Checkpoint 5.3) (Compound interest with non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Account Holder Amount Deposited Annual Interest Rate Compounding Periods Per Year (M) Compounding Periods (Years) Theodore Logan III $ 1,100 18 % 4 6 Vernell Coles 95,000 8 2 2 Tina Elliot 9,000 8 1 5 Wayne Robinson 119,000 12 3 4 Eunice Chung 30,000 18 6 6 Kelly Cravens 14,000 12 12 5 a. The amount of money in Theodore Logan III's account at the end of 6 years will be $enter your response here. (Round to the nearest cent.) Part 2 b. The amount of money in Vernell Coles' account at the end of 2 year(s) will be $enter your response here. (Round to the nearest cent.)…
5. Assume you deposit RM1,000 into a savings account every three months that compounds interest semiannually. a. Determine the payment period (PP) and compounding periods (CP) b. State the payment period greater than or less than the compounding period.
Determine the interest rate earned on a $450 deposit when $475 is paid back in one year.
Find the periodic payment for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future compounding time periodic interest in Value frequency deposit (m) earned years $ $200,000 5% annually 10 12.5779 15905.29 $ $250,000 7.8% semiannually 11 34.6003 7225.43 $ $125,000 3.7% quarterly 15 120.3921 1038.46 $ $ $225,000 3% monthly 15 $ $175,000 7.5% weekly 12 A
(Related to Checkpoint 5.3) (Compound interest with non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Compounding Periods Per Year (M) Compounding Periods (Years) 3 6 4 2 Annual Interest Rate 16% 10 12 121,000 12 32,000 18 Kelly Cravens 13,000 10 (Click on the icon in order to copy its contents into a spreadsheet.) Account Holder Theodore Logan III Vernell Coles Tina Elliot Wayne Robinson Eunice Chung 2 x 12 W S a. The amount of money in Theodore Logan IIl's account at the end of 6 years will be $. (Round to the nearest cent.) b. The amount of money in Vemell Coles' account at the end of 2 year(s) will be $ (Round to the nearest cent.) c. The amount of money in Tina Elliot's account at the end of 5 years will be $. (Round to the nearest cent.) 7 d. The amount of money in Wayne Robinson's account at the end of 5 years will be $ (Round to the nearest cent.) e. The amount of money in Eunice Chung's…
Determine the monthly payment for the installment loan. Use the installment payment formula m = 1- Amount Financed (P) $1,440 O A. $179.15 B. $35.15 O C. $125.26 O D. $366.02 P n 1+) - not Annual Percentage Rate (r) 8% Number of Payments per Year (n) 12 Time in Years (t) 4
USE THE FOLLOWING INFORMATION FOR THIS QUESTION: Installment note payable borrowed from the bank Present value interest factor from table Signed for Annual interest rate Payments are made 195,060 $7,802 $99,442 The outstanding loan balance at the end of year 3 equals what amount? $103,420 zero $287,000 unable to determine 2.77509 3 years 4% Annually
? to to tamoms off to into laul 02.09 3) What is the annual interest rate earned on a deposit that grew from $250 to $502.84 over the last 5 years?
C. Complete the following table: Value of the Deposit Mathematical Expression Used to Deposit Deposit Amount How long it will be in the account After 5 Years Find this Value 1 $350 59 months 469.74 350(1.005)" $350 58 months 350(1.005)* 467.41 $350 57 months 350(1.005)*7 3 465.08 2 months 350(1.005) 58 $350 354.50 1 month 350(1.005)' 59 $350 351.75 60 $350 O month 350 350(1.005)° d. We could find the value of the account after 5 years by adding all the values in the 4th column (if we actually extended the entire table. Why would we not want to do this? e. Use the last column to find the value of the account after 5 years. f. How much interest did Jack earn from the bank in these 5 years? g. If Jack kept saving what would the value of his account be after 10 years ? How can we adjust our answer to question e to answer this question? ..
Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Paid on Interest Rate Payment Paid Principal Balance 11.6% $425.57 $64.23 $361.34 $6,280.78 Fill out the amortization schedule below. Annual Interest Paid on Payment Balance Interest Rate Paid Principal 11.6% $425.57 $64.23 $361.34 $6,280.78 (Round to the nearest cent as needed.)
Calculate the principal and interest portions of the specified payment for this ordinary annuty, and give the balance remaining after that payment For full marks your answer should be rounded to the nearest cont Payment Principal Interest Balance Payment Frequency Term Number to Find Interest Payment Loan Principal Paid Paid After Payment 4. 0.00 0.00 0.00 $45,000.00 3.50 % compounded quarterly $3,250.97 Semi-annual 8 years