A deposit of $100,000 is placed in an account that pays 7.6% interest per year compounded quarterly.  The inflation rate is 3.6% per year.  The account is left undisturbed for 15 years.   How much money will be in the account? What will be the purchasing power in terms of today’s dollars? What is the real rate of return that is made on the account?

Q: A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500…

A: Here, First Deposit is $10,000 Constant Decrease in payment is $500 Interest Rate is 15% Last…

Q: What is the FV at the end of year 5 of $2212 put in an account today if the return is 8.6% per year?

A: Future value refers to the estimated value of an investment or cash flow at a specified point in the…

Q: How much money will be in a bank account at the end of 15 years if $100 is deposi ted today and the…

A: Following details are given in the question : Deposit today (Present value) = $100 Time period = 15…

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A: The future value of annuity due is the total future value of each cash flow which is made at the…

Q: A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to…

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Suppose you have $1500 in your savings account at the end of a certain period of time. You invested…

A: Interest Earned = $1500 -$1100 Interest Earned =$400

Q: Interest rates are 10%. Suppose you deposit the PV (present value) of a 7 year, $5000 annuity in the…

A: An annuity is a cash flow that occurs in each period and the amount is fixed or constant.   In this…

Q: What lump sum of money must be deposited into a bank account at the present time so that ​$6000 per…

A: Here,Annual Withdrawal Amount is $6,000Time Period of Withdrawal is 9 yearsStarting of withdrawal…

Q: You have a bank account that is currently worth 10,000. How long will it take the bank account to be…

A: The declared or promoted interest rate on a financial instrument, like a savings account or loan, is…

Q: if you place $1100 today into an account that pays simple interest and you have $6100 dollars in the…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You have $14,000 in the bank today.  How much would you need to save each year in order to…

A: Current amount (C) = $14000 Let the annual saving = A r = 10% n = 30 years Accumulated value = $3…

Q: 2. Suppose you put $100,000 in a certificate of deposit with an annual interest rate of 6 percent…

A: 2 (A) $126,247.7 (B) $1,27,048.9 (C) $126,898.6

Q: You want to be able to withdraw $8500 from an account at the end of each 6-month period (that is,…

A: Given that;Periodic withdrawal amount is $8500Interest rate is 2.9% per year

Q: If you deposited sum of 200 JOD at the beginning of each month for 20 Years at an annual interest…

A: There are three number of questions which has been asked by the student but as due to guideline we…

Q: answer these two questions. Thank you! 1. Determine the compound interest rate per year equivalent…

A: Simple interest rate is interest rate without the impact of compounding of interest. But effective…

Q: How many years will it take for a uniform annual deposit of size A to have the same value as a…

A:

Q: If you want to have $22,431 in fifteen years, how much do you need to deposit in a bank account…

A: The deposit required to be made today can be calculated as the present value

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A: Annual Deposit = 10,000 Interest Rate = 12% Future Value Required = 1,000,000

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A: Annual Payments = $9,000 Time period = 11 years Annual interest rate = 11%

Q: 6.​If the current value of $1000 received five years from now is $680.50, what is the ​assumed…

A: Annual interest rate refers to the rate that is being charged by the lender by the borrower on the…

Q: you deposit $3000 today in an account earning 3.5% annual interst and keep it for 10 years. In 10…

A: Total amount present in the bank account after 30 years is $111,430.6Explanation:First we calculated…

Q: If you want to have $22,327 in fifteen years, how much do you need to deposit in a bank account…

A: The deposit required today is calculated as the present value.

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A: The FV of an investment refers to its value at a future date assuming that its cash flows grow at a…

Q: If you invest $2,538.00 in an account earning an annual interest rate of 3.153% compounded…

A: Interest is the fee paid to investor for investing funds over a period of time. It is the…

Q: You deposited $10,000 today into a saving account for 5 years with a market rate of 8% per year. The…

A: Deposit amount = $ 10000 Period = 5 Years Interest rate = 8% Inflation rate = 2%

Q: You put 8,293 in the bank for 11 years at 5% what factor would you use to calcuate the future value…

A: Formula future value = present value x (1 + interest rate)^n Present value = 8,293 Interest rate =…

Q: The interest on a particular savings account is compounded continuously. The account initially had…

A: Investment refers to the allocation of money or resources with the expectation of generating income…