It is now January 1, 2002. Your plan to make 5 deposits of $200 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 11 percent but uses semiannual compounding, how much will be in your account after 10 years.
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Question:
It is now January 1, 2002. Your plan to make 5 deposits of $200 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 11 percent but uses semiannual compounding, how much will be in your account after 10 years.
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- 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?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.What lump sum of money must be deposited into a bank account at the present time so that $500 per month can be withdrawn for five years, with the first withdrawal scheduled for six years from today? The interest rate is 0.75% per month.Your goal is to have $15,000 in your bank account by the end of eight years. If the interest rate remains constant at 6% and you want to make annual identical deposits, how much will you need to deposit in your account at the end of each year to reach your goal? (Note: Round your answer for PMT to two decimal places.) $1,060.87 $1,515.53 $1,667.08 $1,818.64 If your deposits were made at the beginning of each year rather than an at the end, by how much would the amount of your deposit change if you still wanted to reach your goal by the end of eight years? (Note: Round your answer for PMT to two decimal places.) $81.49 $107.23 $85.78 $115.80
- 5.It is now January 1, 2002. Your plan to make 5 deposits of $200 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 11 percent but uses semiannual compounding, how much will be in your account after 10 years. Use following information to answer next two questions: You deposited following stream of cash flow at the end of year: Year deposit 1 5000 4000 7000 4 rate of interest 8% 8.5% 10% What will be total amount in your account at the end of 6 year? What is present value of your deposit?.It is now January 1, 2002. Your plan to make 5 deposits of $200 each, one every 6 months, with thefirst payment being made today. If the bank pays a nominal interest rate of 11 percent but uses semiannualcompounding, how much will be in your account after 10 years.Use following information to answer next two questions:You deposited following stream of cash flow at the end of year:Year deposit rate of interest 1 5000 8% 4 4000 8.5% 6 7000 10%It is now January 1, 2018. You plan to make 5 deposits of $200 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 10%, but uses semi-annual compounding, how much will be in your account after 8 years? DO NOT USE EXCEL SHOW WORKING
- Q4…It is now January 1, 2018. You plan to make 5 deposits of $200 each, one every 6 months, with the first payment being made today. If the bank pays a nominal interest rate of 10%, but uses semi-annual compounding, how much will be in your account after 8 years?It is now January 1. You plan to make a deposit of GHȼ100 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 12% but uses semiannual compounding. You plan to leave the money in the bank for 10 years. How much will be in your account after 10 years?You plan to deposit $700 in a bank account now and $900 at the end of one year. If the account earns 2% interest per year, what will the balance be in the account right after you make the second deposit? There will be $ in the account right after the second deposit. (Type an integer or a decimal.)
