A man deposits $11,000 at the beginning of each year for 10 years in an account paying 5% compounded annually. He then puts the total amount on deposit in another account paying 9% compounded semiannually for another 7 years. Find the final amount on deposit after the entire 17-year period. He will have a final amount of $ after the entire 17-year period.

A man deposits $11,000 at the beginning of each year for 10 years in an account paying 5% compounded annually. He then puts the total amount on deposit in another account paying 9% compounded semiannually for another 7 years. Find the final amount on deposit after the entire 17-year period. He will have a final amount of $ after the entire 17-year period.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

See similar textbooks

Similar questions

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
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.
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
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. 2,0000.9264
A man deposits $10,000 at the beginning of each year for 15 years in an account paying 6% compounded annually. He then puts the total amount on deposit in another account paying 7% compounded semiannually for another 11 years. Find the final amount on deposit after the entire 26-year period. He will have a final amount of $ after the entire 26-year period. (Simplify your answer. Round to the nearest cent as needed.)
A man deposits $19,000 at the beginning of each year for 9 years in an account paying 6% compounded annually. He then puts the total amount on deposit in another account paying 8% compounded semiannually for another 7 years. Find the final amount on deposit after the entire 16-year period. He will have a final amount of $_ after the entire 16-year period.
A man deposits $14,000 at the beginning of each year for 14years in an account paying 77% compounded annually. He then puts the total amount on deposit in another account paying 9%compounded semiannually for another 9years. Find the final amount on deposit after the entire 23 year period. (Simplify your answer. Round to the nearest cent as needed.)
Derek will deposit $1,994.00 per year for 23.00 years into an account that earns 17.00 %, The first deposit is made next year. How much will be in the account 39.00 years from today? Submit Answer format: Currency: Round to: 2 decimal places. Atter
You invest $2,000 in a certificate of deposit that matures after nine years and pays 5 percent interest, which is compounded annually until the certificate matures. Use Appendix A to answer the questions. Round your answers to the nearest dollar. How much interest will you earn if the interest is left to accumulate?$ How much interest will you earn if the interest is withdrawn each year?$
A person is planning to deposit RO 1000 in a bank at the end of first year. Thereafter, he wishes to deposit the amount with an annual increase of RO 100 for the next 7 years. The bank gives an interest of 6%, compounded annually. Determine the total amount that would be accumulated to his account by the end of 8th year.
Use the appropriate formula located on Illustration 10-1 on page 209 to solve the problem. Bob deposits $5000 at the end of each 6 months for 14 years in an account paying 6% interest compounded semiannually A) Find the amount he will have on deposit at maturity. B) How much interest did Bob earn? Hint: Find the total amount that was deposited by multiplying the total number deposits with amount of each deposit and then subtracting this from the future value. Show the use of the appropriate formulas for each part by indicating the evaluation of the formula with information and provide the answers. Be sure to parts using the provided letters and organize your work neatly.
You deposit $4,500 per year at the end of each of the next 25 years into an account that pays 10 percent compounded annually. How much could you withdraw at the end of each of the 20 years following your last deposit? (The 25th and last deposit is made at the beginning of the 20- year period. The first withdrawal is made at the end of the first year in the 20-year period.)