A sum of $2000 is deposited in a time-deposit account that pays interest at a rate of 3% per annum. Find the amount after 2 years if the interest is paid (b) The population P of a city n years after the beginning of 2019 is estimated by 20000(1.02)". After how many years (n) the population will just over 40000? P =
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- (a) A sum of $2000 is deposited in a time-deposit account that pays interest at a rate of 3% per annum. Find the amount after 2 years if the interest is paid (i) annually; (ii) monthly. (b) The population P of a city n years after the beginning of 2019 is estimated by P = 20000 (1.02)". After how many years (n) the population will just over 40000?Suppose that $10,000 is deposited into a saving account that earns 6% interest, compounded annually.a) Assuming that no additional deposits or withdrawals are made, use the appropriate compound interestfactors to determine how much the account will be worth:i) After 5 years;ii) After 20 years. b) Verify that your answers in part (a) are correct by constructing a table or spreadsheet that shows howthe initial deposit will grow each year over 20 years. At a minimum, your table or spreadsheet shouldinclude a row for each year and show: the amount of money in the savings account at the start of each year. the amount of interest earned each year; and the amount of money in the savings account at the end of each year, after interest is paid.Be sure to briefly explain how your table or spreadsheet verifies your results from part (a). c) Again assuming that no additional deposits or withdrawals are made, how many years will it take untilthere is at least $50,000 in the account?Beginning 2 years from today, you deposit $1,500 per year for 18 years (18 deposits); for the following 24 years you deposit $2,000 in the first year and 3% more in each successive year. (That is, this series has 24 total deposits starting at $2,000 and growing at a 3% rate. For example, the second year’s deposit would be $2,060.) What is the present value today? (Use a 10% discount rate throughout.) What would you have in your account 35 years from today if every cash flow was compounded or discounted at 10%?
- The following information relates to the number cases to be solved by using financial functions: If you deposited sum of 200 JOD at the beginning of each month for 20 Years at an annual interest rate of 12%. What are the present and future values of these deposits? If the annual interest rate is 6%, what is the monthly payment to be invested at the beginning of each month for a period of 20 years to save the amount of 100000 JOD? Salem invested 120000 JOD for 10 years and the total value of this investment have reached to 195467 JOD, what is the annual interest rate for this investment. Required: Create a new worksheet “Q2”and formulate it to be suitable then use the necessary financial functions to resolve the previous examples.You wish to have $20,000 in an account 8 years from now. How much moneymust be deposited in the account now in order to have this amount if theaccount pays 12% compounded annually?(a) $8,490(b) $8,871(c) $7,632(d)$8,078Suppose $1,000 is deposited in a bank account today (time 0), followed by $1,000 deposits in years 2, 4, 6, and 8. At 6% annual interest, how much will the future equivalent be at the end of year 12?
- set up an equation and solve each problem. Suppose that $500 is invested at a certain rate of interest compounded annually for 2 years. If the accumulated value at the end of 2 years is $594.05, find the rate of interest.Suppose that $1,500 is placed in a bank account at the end of each quarter over the next 20 years. What is the account's future worth at the end of 20 years when the interest rate is 8% compounded(a) semiannually?(b) monthly?(c) continuously?Suppose an individual makes an initial investment of $1,400 in an account that earns 7.0%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to 50). (Round your answers to the nearest cent) (a) How much is in the account after the last deposit is made? (b) How much was deposited? 1 (e) What is the amount of each withdrawal? (0) What is the total amount withdrawn? - 3 Need Help?
- 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.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.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?