FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Anthony plans to deposit $500,000 now and $10,000 every 6 months for 5 years into an account. Determine the amount in the account 2 years after the last deposit. The interest rate is 12% compounded quarterly.arrow_forwardDaniel deposits $20,000 into an account earning interest at 6% per year compounded quarterly. He wishes to withdraw $400 at the end of each month. For how many months can he make these withdrawals? Round entry down to the nearest month. Please show all work! Thank you!!arrow_forwardYolanda deposited $1,800 at the end of each six months for 2 years in a savings account. If the account paid 4% interest, compounded semiannually, use Table 12-1 to find the future value of her account. (Round your answer to the nearest cent.) $arrow_forward
- Solomon has accumulated $11,000 in his savings account. In addition, he plans to deposit $460 at the beginning of every six months into the account for 4 years. If the account earns 3.10% compounded semi-annually, what will be the balance after 4 years?arrow_forwardDerek currently has $11, 936.00 in an account that pays 5.00%. He will withdraw $5,341.00 every other year beginning next year until he has taken 4.00 withdrawals. He will deposit $11936.0 every other year beginning two years from today until he has made 4.0 deposits. How much will be in the account 27.00 years from today?arrow_forwardBarbara makes four consecutive annual deposits of $2,000 in a savings account that pays interest at a rate of 10% compounded semiannually. How much money will be in the account 2 years after the last deposit?arrow_forward
- Sara deposits $13,900 into an account. For the first two years, money in the account earns 5.5% annual interest. After that. the interest rate jumps to 5.8% annual interest. How much would be in the account at the end of 4 yearsarrow_forwardAdditionally complete the following problems (showing all work): i. Joshua plans to retire in 25 years. He will make 15 years of equal monthly payments into his account. Ten years after his last contribution, he will begin the first of 120 (10 years) of withdrawals of $2900 per month. Assume that the retirement account earns interest of 5.4% compounded monthly for the duration of his contributions, the 10 years in between his contributions and the withdrawals, and the 10 years of withdrawals. How large must Joshua's monthly contributions be in order to accomplish his goal? (The parts below will help you work through this problem.) (a) If Joshua wants to fund 10 years of monthly withdrawals of $2900 at 5.4% interest, compounded monthly, how much needs to be in the account? (b) Use your answer from part (b) as future value to find the present value of a compound interest account for the intervening 10 years. (c) This gives you the amount in the account at the end of the 15 years of…arrow_forwardFor the last 15 years Joseph has deposited $4500 at the end of every six months into an account paying 6.5% compounded semi-annually.He now converts the accumulated amount into a retirement income fund which will ear interest at 5.25% compounded monthly. Joseph plans to receive equal payments at the end of every six months from this fund for the next 10 year. Determine the size of each payment.arrow_forward
- 1. Cameron designates 10% of his monthly earnings as charitable contributions. After deducting this amount, he deposits 5% of the remaining amount into a money market account earning 2%. If Cameron's monthly earnings are $4,800 what amount interest will he earn on his deposit each month? 2. Find the maturity value for a loan on $4,225 at 8% made on March 5 and due on May 5 of the same year. Assume a 365-day year. 3. Republic Bank advertises their interest rates at 7 % %. You decide to apply for a loan in the amount of $9,000 for 90 days. The bank grants your loan and the loan officer tells you that there is a document preparation fee of $150 that needs to be paid at the time you sign the documents for the loan. Find the APR. Assume a 360-day year. 4. You took out a loan of $5,000 on May 2 and went back on June 15 to make a payment of $1,200. The loan was at 4% for 1 year. What was your remaining balance after making that payment?arrow_forwardJuanita has $100 deducted from her paycheck at the end of each month and put into a savings account earning 11% interest compounded monthly. She continues these deposits for 5 years. How much is in the account at the end of 5 years?arrow_forwardFor 12 years, at the beginning of every month, Elsa deposits $200 into a savings account. Once the 12 years is up, she leaves the money in the account for another 8 years. If the account earns interest at a rate of 4.32% compounded quarterly, calculate the accumulated amount in the account at the end of the 20-year period.arrow_forward
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