A man went to his bank and borrowed $24,000. He agreed to repay the sum at the end of 8 years, together with the interest at 12% per year. How much will he owe the bank at the end of 8 years?
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Q2. A man went to his bank and borrowed $24,000. He agreed to repay the sum at the end of 8 years,
together with the interest at 12% per year. How much will he owe the bank at the end of 8 years?
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Solved in 3 steps
- You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.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. 2,0000.9264You 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.
- Use 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?2. You are running a bank. A customer agrees to pay you $100,000 each year with annual interest rate of 10% for 5 years. How much money will you lend to him?
- 1. If you deposit OMR 32000 today in to a bank account that pays 4% interest compounded, how much money would you have in the account at the end of 5 years.Q2. You are considering investing $2,000 in a bank term deposit for 5 years. The term deposit will pay quarterly interest of 3% (compounded quarterly). What is the value of the deposit at the end of year 5?Suppose you receive $100 at the end of each year for the next 3 years. a) if the interest rate is 8%, what is the present value of the cash flows? b) what is the future value in 3 years of the present value you compute in a? c) suppose you deposit the cash flows in a bank account that pays 8% interest in a year. What is the balance in the account at the end of each of the nest 3 years (after your deposit is made)? How does the final bank balance compare with your answer in b?
- Q2): A person deposits $28,500 into a savings account that earns 5% interest per year. At the end of 12 years, the person wants to have at least $1,500 remaining in the account. What uniform annual amount could be withdrawn at the end of each year for 12 years so that $1,500 dollars would be left in the account after the twelfth withdrawal? (s3. If you are planning a trip to other place after 3 years. And, if you intend to deposit savings of ETB 1,000 now and expects to deposit another ETB 500 at the End of next year. If the bank pays 5% interest per year compounded annually, how much money can you expect to be available to you at the time of your departure? 4. A ly of ETB SO0.000. at an6. In order to have P350,000 in 5 years, how much should you invest if the compound interest is 12% per annum? 7. Peter borrowed P100,000 at 8% compounded annually? How much will he be paying after 2 years? 8. How much money must be invested to obtain an amount of P250,000 in 3 years if money earns at 12.5% compounded annually? 9. A time deposit account in a bank yields 5.5% compound interest annually. Jennifer invested P450,000 for 4 years in this savings account. How much interest will she gain? 10. What amount must be deposited by a student in a bank that pays 3 % compounded annually so that after 12 years he will have P150,000? 17