A man deposits her annual bonus into a savings account that pays 8% interest compoundedannually. The size of his bonus increases by $5000 each year, and the initial bonus amount is$6000. Determine how much will be in the account immediately after the fifth deposit.

A man deposits her annual bonus into a savings account that pays 8% interest compoundedannually. The size of his bonus increases by $5000 each year, and the initial bonus amount is$6000. Determine how much will be in the account immediately after the fifth deposit.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

See similar textbooks

Related questions

Q: What is the future worth of a series of equal yearly deposits of $6,000 for 6 years in a savings…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You deposit $5000 each year into an account earning 3% interest compounded annually. How much will…

Q: If you deposit $250 each month into an individual retirment account that earns 4.8% interest…

Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…

A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

Q: woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly. The…

A: This is in the form of a growing annuity.

Q: You deposit $7,000 into an account earning interest at a 7% APR. You keep the money in the account…

A: Initial deposit = $7,000 Interest rate = 0.07 or 7% Period = 5 years Money in account at the end of…

Q: Nicole loans P900,000 from bank today which gives her 10% interest rate compounded annually. Based…

A: Loan amount (L) = P 900000 r = 10% n = 10 payments Let the annual payment = A

Q: You would like to have $8,000.00 in 15 years for a special vacation following graduation by making…

A: Using the PMT function in excel

Q: At the end of each quarter, a life insurance client deposits Ph 6,176 for 5 years. If money is worth…

A: Quarterly deposit (P) = Ph 6,176 Interest rate = 5.3% Quarterly interest rate (r) = 5.3%/4 = 1.325%…

Q: Mattie Bookhout receives an annual bonus and deposits it in a savings account that pays 8%…

A: Interest charged on the principal amount and the interest accrued is known as Compound Interest. It…

Q: An individual makes six annual deposits in a savings account starting one year from now that pays…

A: Let the annual deposits be "x". We know that FV of annuity = P*[(1+r)^n - 1]/r = x * [1.10^6 -…

Q: Your aunt promises to gift you $1,500 now, $1,700 one year from now, $1,900 two years from now, and…

A: The future value is reflective of the value of cash flows in the future after compounding them using…

Q: A man is planning to retire in 25 years. He wishes to deposit a regular amountevery three months…

A: Excel Spreadsheet: Excel Workings:

Q: how much money will be in the account? How much of it is interest?

A: Annuity payments are the fixed periodic payments that an investor or depositor makes into an…

Q: A person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate of 10…

A: We need to use future value of annuity formula to calculate amount after 6 years FVn =PMT(1+i)n -1i…

Q: You plan to deposit $900 PER YEAR into an account earning 5.25% interest compounded annually. How…

A: Since you posted multiple questions ,we will solve the second page last question for you. if u want…

Q: Find the annual deposit

A: Compound interest is the interest on interest. Under this method the interest is calculated by…

Q: A man deposits $11,000 at the beginning of each year for 10 years in an account paying 5% compounded…

A: The process of compounding involves addition of additional interest into the amount that is already…

Q: Karen deposits 300 each month into an annuity that pays 8% annual interest at the end of each year.…

A: Future value of annuity =PMT [{(1+i) n-1}/i]*(1+i) Where i=periodic interest rate n=number of…

Q: Eric invested his savings in a bank at 3.75% compounded monthly. How much money did he invest to…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: you deposit $1,000 each year into an account earning 3% interest compounded annually. How much will…

A: Time value Value received today by an individual is of more worth than receiving the exact value in…

Q: An Engineer deposits 7,000 pesos every year end in a savings account that pays nominal annual…

Q: Peter deposits $75 at the end of each quarter for 15 years into an account that pays 3.14%…

A: Given data; payment amount= $75 number of years = 15 annual rate = 3.14% compounding frequency = 4…

Q: Suppose that you are to make annual deposit of $3,000 into a retirement account that pays 11%…

A: Future value of the amount is the worth of the current amount in some future specified date at given…

Q: Your grandmother set up an annuity, in which she will receive a monthly payment from the bank of…

A: The present value of an annuity is the present value of a series of cash flows at a certain rate of…

Q: woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly. The…

A: This is about growing annuity.

Q: You deposit $5000 at the beginning of each year into an account earning 3% interest compounded…

A: Introduction: Annuity Due: It refers to the series or stream of equal payments made at the beginning…

Q: You own $35000 from the bank for 3 years at 8.50% annual interest, and you will make equal monthly…

A: Solved using Financial Calculator PV = 35,000 N = 3years * 12 = 36 I/Y = 8.5/12 = 0.708333 CPT PMT…

Q: Suat opens a deposit account in a bank by depositing 10,000 TL. In addition, he will deposit 6,000…

A: Initial Deposit = 10,000 Deposit after one year = 6000 Deposit after two years = 4000 Value in…

Q: Ann saves 4,800 as a term deposit today. The interest is paid semi-annually. If her saving grows to…

A: APR is the annual percentage interest rate which is being earned on particular amount of investment.…

Q: A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months…

A: Annual payments he will receive = $95000 Time period = 18 years Interest rate = 8% Compounding =…

Q: Iris expects to receive $1,000 at the end of each of the next three years. She will deposit these…

A: Payments = 1000 Semi Annual Compounding, Time Period = 3 years * 2 = 6 semi annual periods Interest…

Q: You deposit $1000 each year into an account earning 4% interest compounded annually. How much will…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: You deposit $3000 each year into an account earning 2% interest compounded annually. How much will…

A: Annual deposit (P) = $ 3000 Annual interest rate(R) = 2% Period (N) = 35 Years

Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…

A: Future Value = Present Value * (1+interest %)^N Future Value = 100*(1.0325)^7 Future Value =…

Q: Your friend Demetrius has an annuity that pays 4.6% annual interest compounded monthly and at the…

A: Note: “Since you have asked multiple questions, we will solve the first question for you. If you…

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: A business man has an obligation to pay $ 8,000 four years from now, and another obligation to pay $…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: You make deposits of $700 at the end of each month into an account earning i^(12) = .03 for three…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: At the end of each quarter, a life insurance client deposits Ph 6,366 for 5 years. If money is worth…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: Beatrice deposits $75 at the end of each month into an account earning 4.75% compounded monthly. How…

A: Compound interest refers to the interest accrued not only on principal amount but also on the…

Q: Jane invests $700 at the end of each year for 5 years. If interest is paid at 7%/a compounded…

A: Data given: Investment amount = $ 700 (at the end of each year) n= 5 years Interest = 7% p.a.…

Q: Tandang Sora has deposited P33,000 today in an account which will earn 10 percent annually. She…

A: Given information: Present value : P33,000 Rate of interest : 10% Time period : 7 years Future…

Q: Mae expects to receive $1,000 at the end of each of the next three years. She will deposit these…

A: Mae expects to receive at the end of each of next three years = $1000 She will deposit these…

Q: How much Alex must deposit annually if he wants to have $800,000 in 25 years by making equal annual…

A: Annual payments refers to the periodic payment which can be used for a variety of purposes like for…

Q: In 6 years, Mrs. Fong must pay off a note with a face value of $14,000, and interest of 10% per…

A: Solution: 9 Face value of notes $14,000 Interest rate semiannually (10% / 2) 5% Period (6…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to Question:

VIEW

Step 2: Calculation of amount in the saving account immediately after the fifth deposit:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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

Mattie Bookhout receives an annual bonus and deposits it in a savings account that pays 8% compounded annually. The size of her bonus increases by 10% each year; her initial deposit is $500 at the end of the first year. Determine how much will be in the fund immediately after her tenth deposit.
Derek will deposit $1,169.00 per year into an account starting today and ending in year 5.00. The account that earns 7.00%. How much will be in the account 5.0 years from today?
A woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly. The size of the bonus increases by 10.5% each year, and the initial bonus amount was $3,000. Seven deposits were made. Determine how much will be the amount 10 years after her last deposit. (pls draw cash flow diagram)
Mae expects to receive $1,000 at the end of each of the next three years. She will deposit these payments into an account which pays 10%, compounded semi-annually. How much will be the future value of these payments, that is, the value at the end of the third year? a. $7,986.00 b. $3,318.01 c. $3,993.00 d. $665.50
Karen deposits 700 each month into an annuity that pays 12% annual interest at the end of each year. How much will she have in this account at the end of 2 years? FUTURE VALUE OF ANNUITY DUE.
Iris expects to receive $1,000 at the end of each of the next three years. She will deposit these payments into an account that pays 10%, compounded semi-annually. What will be the future value of these payments, that is, the value at the end of the third year? a. $3,318.01 b. $1,340.10 c. $1,157.63 d. $1,331.00
An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per year (payable at the end of each year). He leaves the money and all accrued interest in the account for 7 years. How much will he have at the end of the 7 years? What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of five years? Assume an annual compound rate of 8.5%. What is the value of $2000after one year, if bank compounding half yearly and offered rate is 10%? What is the value of $2000 after one year if bank compounding quarterly and offered rate is 10%? What is the value of $2000after one year if bank compounding monthly and offered rate is 10%?
Tandang Sora has deposited P33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of P65,000, what recommendation would you make to Tandang Sora
A person is planning to deposit RO 1000 in a bank at the end of first year. Thereafter, he wishes to deposit the amount with an annual increase of RO 100 for the next 7 years. The bank gives an interest of 6%, compounded annually. Determine the total amount that would be accumulated to his account by the end of 8th year.
A woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly. The size of the bonus increases by 10.5% each year, and the initial bonus amount was $3,500. Seven deposits were made. Determine how much will be the amount 10 years after her last deposit. (Upload the picture of your complete solution including the correct CASH FLOW DIAGRAM)
At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8% compounded annually. How much is in the account today? How much would be in the account if the deposits were made at the beginning of each year (PMT Type) than at the end of each year? (Use Future Value of an Annuity) Suppose your opportunity cost (interest rate/year) is 11% compounded annually. How much must you deposit in an account today if you want to pay yourself $230 at the end of each of the next 15 years? How much must you deposit if you want to pay yourself $230 at the beginning of each of the next 15 years? Bruce invested $1,250 (present value - enter as a negative number) 10 years ago. Today, the investment is worth $3,550 (future value). If interest is compounded annually, what annual rate of return did Bruce earn on his investment? (Use Solving for r - Rate of Return- on a Lump Sum) Mario wants to take a trip that costs $4,750 (future value), but currently he only has $2,260…
Ann saves 4,800 as a term deposit today. The interest is paid semi-annually. If her saving grows to $6,000 in three years, what is the interest rate of this term deposit in APR?