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- Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264Use 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?
- 3. Compound interest Old Time Savings Bank pays 4% interest on its savings account. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the tenth year?4. You want to deposit $600 in a savings account. Account A earns 3.5% simple interest per year. Account B earns 3.3% interest compounded annually. a. Which account should you choose if you invest your money for 3 years? 6 years? Explain. b. After how many years is the balance in Account B greater than the balance in Account A? c. After how many years is the difference between the account balances greater than $5?Question 1 You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much will you have in the account in 30 years? b) How much total money will you put into the account? c) How much total interest will you earn?
- If you deposit $20,000 in a bank account that pays 5% interest annually, how much will be in your account after 5 years? A. $15,670.52 B. $18,525.63 C. $25,670.52 D. $15,525,63 E. $25,525.63Problem 3: Your parents deposit $1000 in your bank account paying 5% per year. What would be the balance in your account after 10 years?Question 1: You invest $ 20.000 in a bank account to buy a house at annual interest rate 15 per year, compounded monthly, for 5 years. What is the price of house in this respect?
- 17. Old Time Savings Bank pays 8.25% interest on its savings account. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year?b. How much interest will you earn in the second year?c. How much interest will you earn in the tenth year?b. You have a $20,000 note payable which is due in three years. How much money must you put into a savings account today in order to have enough money to pay off the debt on time assuming your savings account earns 3% interest compounded annually? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)? Need detail help wtih D. include N=I%=PV=FV=PMT Thank youHow much will be in Amber's bank account after 2 years if the account pays 8% compounded semi-annually if she deposits $800 into the account semi-annually? $10,247.26 $3,397.17 $6,523.69 $8,762.81
