A person wishes to get 400$ at the end of third year and 600$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: O a. 650$ O b. 625$ O c. 620%

A person wishes to get 400$ at the end of third year and 600$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: O a. 650$ O b. 625$ O c. 620%

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...

See similar textbooks

Related questions

Q: A bank offers all savings accounts 5% interest compounded annually. If one account has a principal…

A: An account doubles when the present value becomes 2 times of itself. In order to become two times,…

Q: Old Time Savings Bank pays 7.25% interest on its savings account. If you deposit $1,000 in the bank…

A: Annual Interest Rate = 7.25% Deposit = 1000

Q: client deposits $5 million in a savings account that pays 5 percent per year compounded quarterly.…

A: The given problem can be solved using FV function in excel. FV function computes amount value in…

Q: Suppose you deposited $1,000 in a credit union account that pays 7% with dailycompounding and a…

A: Excel Spreadsheet:

Q: A student plans to deposit P1,750 in the bank now and another P3,050 after 2 years. If he plans to…

A: Deposit now = P 1750 Deposit after 2 years = P 3050 Withdraw after 5 year (3 Years after last…

Q: You invest 185 000 TL to a bank deposit account at gross rate of %24.5 for 65 days. If the…

Q: A person opens a bank account with a deposit of $150 what is the future value of this amount after 3…

A: In the Given Question we are required to calculate the future value of $150 deposited today for 3…

Q: bu want to lend $10,000 as a bank deposit in a private bank with an interest rate 4 % compound…

A: In this we need to find out future value and than find out interest on that.

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: The future value of annuity refers to the future value of a series of payments. The future value can…

Q: A bank account pays 5.2 % annual interest compounded semiannually. How much money should be…

A: The amount to be deposited today can be calculated with the help of present value function Future…

Q: Suppose a person has a total credit card debt of $1.375 that has a 12% yearly interest rate. This…

A: Interest rate on savings provides the earnings to the investors while interest rate on credit card…

Q: You want to lend $500 as a bank deposit in a private bank with an interest rate 9% per month. You…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: 1. It is now January 1, 2018. You will deposit $1,000 today into a savings account that pays 8…

A: Answer 1: Information Provided: Deposit = $1000 Interest Rate = 8%

Q: Person A deposits $2750 in an account that pays 5% interest compounded once a year. Person B…

A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…

Q: You deposit $1,000 in an account today at a rate of 4%. What will be in the account after 40 years…

A: Future value = Present value * (1+rate)^no. of period

Q: Person A deposits $2750 in an account that pays 5% interest compounded once a year. Person B…

A: Compounding is a way to compute to compute the FV of present amount by considering money’s time…

Q: A person deposits 200$ at the end of first, 300$ at the end of second and with draw 150$ at the end…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: 18. A man will deposit 200 with a savings bank at the beginning of each 3 months for 9 years. If the…

A: Question 18 pertains to annuity due. Annuity due is that annuity in which payments are made at the…

Q: Jenny puts $200 into a savings account today, the account pays an annual interest rate of 5%, but…

A: Invested amount = $ 200 Annual interest rate = 5% Semi annual interest rate = 5%/2 = 2.50%…

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: Present Value is referred to as the current value of future sum of the funds or the cash flows…

Q: You currently have $4,000 in a bank account that pays an annual rate of 1%, compounded monthly. You…

A: Dear student, we need to use NPER formula to calculate number of periods(N) in excel.

Q: A bank features a savings account that has an annual percentage rate of r = 5.8% with interest…

A: (A) n=p/yt Given t=10 years (p/y)=4 (since interest is compounded quarterly)

Q: You borrow $64,000 in the form of an unsubsidized loan at 3.98% APR. How much money do you owe when…

A: Given: Loan amount = $64,000 APR = 3.98% Period 6 months

Q: Your bank pays 8% interest, compounded annually. Use the appropriate formula to find how much you…

A: Given, Interest rate (r) =8% Annuity payment (A) = $700 Time (n) = 8

Q: Question Help ▼ You plan to deposit $800 in a bank account now and $500 at the end of the year, If…

A: given, rate =3% year cashflow 0 $800 1 $500 future value formula: future value =present…

Q: Question 1 Mrs. Martin has $250 000 that she can deposit in any of three savings account for a three…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: t is now January 1, 2x16, and you will need P100,000 on January 1, 2x20. Your bank compounds…

A: The value of money would possibly change with time. The money that is received at present will have…

Q: A person wishes to get 800$ at the end of second year and 900$ at the end of fifth year, if rate of…

A: The question is based on the concept of calculating the present value of expected future cash flows…

Q: You need to have $50,000 in a bank account 28 years from today. Assume APR is 12% and monthly…

A: The present value is computed by multiplying the future value with the present value factor. If a…

Q: Banco Filipino is offering 0.8 percent compounded daily on its savings accounts. If you deposit…

Q: If you deposit $700 in a bank account that earns 5 percent per year, how much total interest will…

A: Interest Amount = Principal * ( 1 + r )n - Principal

Q: Fifth Fourth National Bank has a savings program which will guarantee you $14,500 in 11 years if you…

A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

Q: You deposit $296 today into a bank account that earns 12% annually. How much will be in your…

Q: 1. If you deposit OMR 32000 today in to a bank account that pays 4% interest compounded, how much…

A: 1. we need to calculate future value of OMR 32,000 after 5 years at 4% interest rate. so, future…

Q: Carla deposits $1,000 in the bank and the bank is paying a 4% interest rate. Assuming no other…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: An individual makes five annual deposits of P 2,000 in a savings account that pays interest at a…

A: Annual deposit = 2,000 Interest Rate = 4% Period = 5 Years After 5 year the interest rate is…

Q: Old Time Savings Bank pays 6.50% interest on its savings account. If you deposit $1,000 in the bank…

A: Deposit made = $1000 Interest on savings account = 6.5%

Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…

Q: You plan to withdraw the amounts given below over the next five years from a savings account that…

A: GIVEN, R=9% YEAR CASHFLOW 1 0 2 24000 3 14000 4 26000 5.00 42000

Q: 4. You want to deposit $600 in a savings account. Account A earns 3.5% simple interest per year.…

A: When interest calculated based on simple interest: Amount accumulated = Principal*(1+r*n) When…

Q: If a Commercial Bank A offers its savers a 10.3% annual interest rate and pays interest annually,…

A: ASSUMING THE PRESENT VALUE (INVESTMENT)= 1000 FIND OUT FUTURE VALUE OF INVESTMENT ANNUALLY…

Q: You plan to invest an amount of money in a certificate of deposit (CD) at your bank. The stated…

A: Compound Interest is also called interest on interest. It is the addition of interest in the…

Q: In other words, how much do you have to deposit now

A: Present Worth: It is the present value of the cash flows discounted over a given period at a…

Q: You deposit $1,000 in a bank account at the beginning of Year 1. How much will be in the account…

A: Solution-1 Deposit at the beginning of year 1 $1,000 Furture value of $1 at 4% for 12 period…

Q: If you deposit $15,000 at EOY 1, $10,000 at EOY 2, and $5,000 at EOY 3 into a savings account which…

A: Deposit at end of year 1 = 15000 Deposit at end of year 2 = 10000 Deposit at end of year 3 = 5000…

Q: Old-time savings bank pays 4% interest on its savings accounts. If you deposit $2200 in the bank and…

A: Interest is the amount received for the deposited amount in the savings A/C. Interest is mainly…

Q: Find the equivalent present worth of the cash receipts in the accompanyingdiagram, where i = 8%…

A: given r=8% year cashflow 1 -1000.00 2 600.00 3 600.00 4 600.00 5 800.00

Question

A person wishes to get 400$ at the
end of third year and 600$ at the end
of fifth year, if rate of interest is 12%
how much he has to deposit in the
bank today?
Select one:
O a. 650$
b. 625$
O c. 620%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

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. 2,0000.9264
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 $1 table in Appendix B and verity that your answer is correct.
A person wishes to get 800$ at the end of second year and 900$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: a. 1220$ b. 1271$ c. 1160$
A person deposits 200$ at the end of first, 300$ at the end of second and with draw 150$ at the end of third year, if the rate of interest is 10% how much he will get at the end of fifth year? Select one: a. 511$ b. 550$ c. 565$
You plan to deposit into your bank account $100 two years from now, $200 three years from now and then to withdraw your full balance at the end of year 4. If you can earn 2% per year, how much would have in your account by the end of year 4? O A. $308 O B. $318 Oc. $310 O D. $312
A person opens a bank account with a deposit of $150 what is the future value of this amount after 3 years if the interest rate is 8% compounded quarterly? O a. 166.29 O b. $190.23 c. $300 O d. 188.20
If you deposit OMR 12200 in your account in a bank. If your bank pays 8.15% interest, how much will you get in 12 years? Select one: a. 31537.63 b. 29237.63 c. 31237.63 d. 29736.63
If you deposit $15,000 at EOY 1, $10,000 at EOY 2, and $5,000 at EOY 3 into a savings account which earns an annual interest rate of 22% compounded continuously, how much will you have in your account at EOY 5? O a. $50,779 O b. $48,222 O c. $63,275 O d. $58,830 O e. $40,751i
If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded annually, how much will you have after 8 years of saving? O a. $633,523 O b. $37,566 O c. $473,672 O d. $450,793 O e. $557,760
Every year you deposit $3,500 into an account that earns 19% interest per year, What will be the balance of your account immediately after the 40th deposit? Click the icon to view the interest and annuity table for discrete compounding when / 1% per year. Choose the correct answer below. O A. $165,837 O B. $123,795 OC. $171,102 OD. $172,813 OE. $140,000
You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate of 5% one year and 7% other year. How much money will you have at the end of year thirty if there are different interest rates after year 30 as shown in the diagram below? 0 1 2 3 5% 7% 5% 7% Select one: O a. 117724 O b. 18050 O c. 90000 O d. 106141 O e. 120408 4 2000 1000 2000 1000 wwww **** **** 26 27 28 29 30 5% 1000 2000 1000 2000 1000 7% 5% %7 F?