↑A woman deposits $8000 at the end of each year for 13 years in an account paying 8% interest compounded annually.(a) Find the final amount she will have on deposit.(b) Her brother-in-law works in a bank that pays 7% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account?(c) How much would she lose over 13 years by using her brother-in-law's bank?(a) She will have a total of $on deposit.(Simplify your answer. Round to the nearest cent as needed.)CUL ↑A woman deposits $8000 at the end of each year for 13 years in an account paying 8% interest compounded annually.(a) Find the final amount she will have on deposit.(b) Her brother-in-law works in a bank that pays 7% compounded annually. If she deposits money in this bank instead of the other one, how much will she have in her account?(c) How much would she lose over 13 years by using her brother-in-law's bank?(a) She will have a total of $on deposit.(Simplify your answer. Round to the nearest cent as needed.)CUL

Accrued amount refers to the compile sum of income, interest and all the desired expenses that needs…

Answered: A woman deposits $8000 at the end of…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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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
Assume that you inherited some money. A friend of yours is working as an unpaid intern at a local brokerage firm, and her boss is selling securities that call for 4 payments of 50 (1 payment at the end of each of the next 4 years) plus an extra payment of 1,000 at the end of Year 4. Your friend says she can get you some of these securities at a cost of 900 each. Your money is now invested in a bank that pays an 8% nominal (quoted) interest rate but with quarterly compounding. You regard the securities as being just as safe, and as liquid, as your bank deposit, so your required effective annual rate of return on the securities is the same as that on your bank deposit. You must calculate the value of the securities to decide whether they are a good investment. What is their present value to you?
A mother wants to invest $8 comma 000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $ 480.00 comma how much money was invested in the CD account? The total interest earned after one year is $480.00 . How much money was invested in the CD account?
Molly deposits $2,500 in her checking account today. Her checking account pays interest of 2.5% compounded annually. Assuming Molly does not withdraw any funds and does not deposit any additional funds, how much will be in her account in 23 years?
Stella deposits $54,000 in a savings account at a bank that offers interest of 5.3% on such accounts. What is the value of the money in her savings account in five years’ time?
Heather deposited $1, 700 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next 13 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Heather in 13 years?
Kate deposited P5,000 to her bank account every year when she was in high school for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated on time), she got a job that pays P250,000 a year. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year. *Please show your correct and complete solutions to this problem. Thank you!*
Destiny invests $20,000 today into a retirement account. She expects to earn 7 percent, compounded annually, on her money for the next 30 years. After that, she wants to be more conservative, so only expects to earn 4 percent, compounded annually. How much money will she have in her account when she retires 40 years from now, assuming this is the only deposit he makes into the account? O $225,359.94 O $152.245.10 O $377,605.04 $299,489.16 O None of the answers is correct
From age 20 to 35, Susan deposits $350 semi-annually in a savings account paying 6.12% compounded semi-annually. She then quits making deposits, and leaves the money to continue earning interest until she reaches age 65. William starts later, at age 50, and deposits $2200 semi-annually in an account paying the same rate until he reaches 65. (a) How much money will Susan have accumulated at age 65? $ (b) How much money will William have accumulated at age 65? $
Kate deposits P5,000 to her bank account every year when she was in highschool for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated ontime), she got a job that pays P250,000ayear. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year
Jada deposited an amount of money in a bank 8 years ago. If the bank had been paying interest at the rate of 4%/year compounded daily (assume a 365-day year) and she has $21,000 on deposit today, what was her initial deposit? (Round your answer to the nearest cent.) $ Need Help? Talk to a Tutor
Rocio invests $170.00 a month for 9 years into an account earning 6% compounded monthly. After 9 years, she leaves the money, without making additional deposits, in the account for another 18 years. How much will she have in the end and what is the total amount of her deposits?Rocio will have_____ in her account at the end of 27 years______ and is the total amount of deposits she made. HintLucille didn't invest anything for the first 9 years, then deposited $170.00 a month for 18 years into an account earning 6% compounded monthly. How much will she have in the end and what is the total amount of her deposits?Lucille will have______ in her account at the end of 27 years and ________is the total amount of deposits she made.

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