An account today is credited with monthly interest thereby bringing the account balance to $6,660. The interest rate is 6.60% compounded monthly. You plan to make monthly withdrawals of $55 each. The first withdrawal is in exactly one month and the last in exactly 12 years. Find the account balance immediately after the last withdrawal. Question 18Select one: a. $3516 b. $3197 c. $2906 d. $2642 e. $2402

Q: How much money do you need to deposit in a bank account now so that you can years forever if the…

A: Withdrawal amount for every 6 years = $10,000 Number of years = 6 Interest rate (i) = 6% Deposit…

Q: + nt card has a balance of $5400 and an annual interest rate of 1 there are no further purchases…

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Q: 2. Use this information to answer the following questions: a) Let's say you invest $10,000 into each…

A: Computation A:

Q: Question 3: Suppose you make $100 quarterly deposits to your saving account which earns an interest…

A: Quarterly deposit (q) = $100 Number of deposits (n) = 12 (i.e. 3 years * 4) Interest rate = 0.15…

Q: Assume you deposit $4,200 at the end of each year into an account paying 10 percent interest. a. How…

A: The fixed periodic regular payments/deposits made at each periodic interval are recognized as…

Q: Forty eight monthly deposits are made into an account paying 6% nominal interest per year compounded…

A: Amount of each deposit = M Number of deposits (n) = 48 r = 6% per annum = 0.5% per month Accumulated…

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A: It is a case of an annuity due where deposits are done at the beginning of the month for 24 months.…

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A: Amount required (F) = $60,000Number of deposits (n) = 14Quarterly interest rate (r) = 0.12Amount of…

Q: Use Table 12-1 of your text to find the future value of $1,600 deposited at the beginning of every…

A: FV of annuity due=(Pmt*((1+r)n-1)/r) *(1+r)

Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…

A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…

Q: ying a ye er 10 yea 30.000?

A: Formula to calculate the present value or the amount to be deposited today is: P = A/(1+i)^n Where P…

Q: A payment of $400 was made at the end of each year for five years into a savings account. The…

A: Principal amount=Payment per year×Number of years=$400×5=$2,000

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A: Force of interest is interest compounding continuously and is the highest form of the compounding.

Q: compounded

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Q: Assume an individual is wanting to determine the monthly deposits if after 1 year based on monthly…

A: Future Value = 12,336.42 6% Continuous Compounding

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A: Given:FV = $25,390P = $360r (monthly interest rate)n=12 (compounded monthly)

Q: If you deposit $20,000 per year for 18 years (each deposit is made at the beginning of each year) in…

A:

Q: You just deposited $3,500 in a bank account that pays a 4.0% nominal interest rate, compounded…

A:

Q: Assuming a 360-day year, the interest charged by the bank at the rate of 10%, on a 90-day,…

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Q: How much money should be on the account today in order for annually withdrawals of $100.00 to be…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Suppose you make quarterly deposits of $1,500.00 into an account that pays an interest at a rate of…

A: Answer: Calculation of the balance in the account at the end of year 2: Formula, we will use here,…

Q: Leonardo's bank account contains $1,200,000. Leonardo will make equal monthly withdrawals at the end…

A: Monthly payment The minimum amount that is required to paid/withdrawn every month by an individual.

Q: Suppose that you had deposited $125 in a bank account for each of the last 5 years. What annual…

A: Amount deposited per year is $125 Time period is 5 years Amount in account is $758.92 To Find:…

Q: A deposit $400 today in an account paying 7% per year. What would be the balance in your account…

A: We need to use compound interest formula to calculate account balance after 6 years A=P(1+i)n where…

Q: Your goal is to have $12,500 in your bank account by the end of eight years. If the interest rate…

A: Future Value = fv = $12,500Time = t = 8 YearsInterest Rate = r = 8%Annual Deposit type = at the end

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:

A: Future value = Present value(1 + Rate)^Time

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A: The objective of this question is to find out the number of payments required to reach a certain…

Q: You would like to earn simple-interest $1 800 from a term deposit at 4.25% in 8 months. Calculate…

A: Simple interest is a method of interest calculation where the principal amount remains the same for…

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A: Daily compounding Nominal rate= 7% Number of compounding periods = 365 Deposit = 2578 N = 3285 days…

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Q: Your goal is to accumulate $60,000 in seven years' time.  What monthly deposit must you make into a…

A: Interest rate per month = 12%/12 = 1% per month Time period = 7 years * 12 = 84

Q: The bank statement opposite shows transactions over a one-month period for a savings account that…

A: Interest on savings account is calculated on daily balance in the account.

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A: The objective of the question is to calculate the future value of a single sum of money invested…

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A: Compounding interest the interest you earn interest on interest amount.

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Q: Activity 1.1 Directions: Complete thetable by comOting the future value and present value of an…

A: Please see the next step

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A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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Q: If you wish to accumulate $205,000 in 6 years, how much must you deposit today in an account that…

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A: The future value function is applied when the investor wants to know how much he/she will get after…

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.