Suppose you deposited $39,000 in a bank account that pays 5.25% withdaily compounding based on a 360-day year. How much would be in theaccount after 8 months, assuming each month has 30 days?Select the correct answer.O a. $40,389.07O b. $40,375.67O c. $40,402.47d. $40,368.97Oe. $40,382.37 Assume that you own an annuity that will pay you $15,000 per year for 12years, with the first payment being made today. You need money today toopen a new restaurant, and your uncle offers to give you $80,000 for theannuity. If you sell it, what rate of return would your uncle earn on hisinvestment?Select the correct answer.O a. 21.76%O b. 19.06%O c. 19.96%O d. 18.16%O e. 20.86%

Future value is the amount initially deposited and amount of comounding interest accumulated over…

Suppose you deposited $39,000 in a bank account that pays 5.25% WI daily compounding based on a 360-day year. How much would be in t account after 8 months, assuming each month has 30 days? Select the correct answer. O a. $40,389.07 O b. $40,375.67

Suppose you deposited $39,000 in a bank account that pays 5.25% WI daily compounding based on a 360-day year. How much would be in t account after 8 months, assuming each month has 30 days? Select the correct answer. O a. $40,389.07 O b. $40,375.67

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Question

Suppose you deposited $39,000 in a bank account that pays 5.25% with
daily compounding based on a 360-day year. How much would be in the
account after 8 months, assuming each month has 30 days?
Select the correct answer.
O a. $40,389.07
O b. $40,375.67
O c. $40,402.47
d. $40,368.97
Oe. $40,382.37

Assume that you own an annuity that will pay you $15,000 per year for 12
years, with the first payment being made today. You need money today to
open a new restaurant, and your uncle offers to give you $80,000 for the
annuity. If you sell it, what rate of return would your uncle earn on his
investment?
Select the correct answer.
O a. 21.76%
O b. 19.06%
O c. 19.96%
O d. 18.16%
O e. 20.86%

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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.
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