Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semiannually. If you make consecutive semi-annual deposits of P500 each, with the first deposit being made today, what will your balance be at the end of Year 5?

Q: "What is the future value of an investment in which you deposit $988 into an account at the end of…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: What is the present worth of P500 deposited at the end of every month for 6 years if the interest…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: uppose your firm has an obligation to pay an annuity with 18 annual payments of $80,000. The first…

A: Annuity payment is a  series of payments lasting for some specific period. An annuity payment for a…

Q: What is the future value in 4 years of €1,000 invested in an account with a stated annual interest…

A: Amount Invested is 1,000 Time period is 4 years Interest rate is 10% To Find: Future Value…

Q: What will be the final balance at the end of year 23 if you make a deposit of 88,000 at the end of…

A: Future values refer to the concept of determining the future worth of current money deposits.

Q: Harry Morgan plans to make 30 quarterly deposits of P200 into a savings account. The first deposit…

A: Solved using Financial Calculator  N= 30 (7.5 * 4 = 30) I/Y = 8/4 = 2 PMT = 200 CPT FV = 8113.62

Q: Determine the size of your investment account 30years from now (when you plan to retire) if you…

A: Future value of annuity , FV= P * ( (1+r)^t -1) /rwhere P =$12,000r=0.10t=30 yearsFV =?

Q: You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent…

A: Compound = monthly = 12Monthly Deposit = d = $370Interest Rate = r = 9 / 12 = 0.75%Time = t = 35 *…

Q: Find the Future value of the following deposits: P5000 two months from now, P3000 at the end of the…

A: The time value of money concept is the financial concept that deals with the time value or worth of…

Q: Suppose that today you start a savings account with a deposit of $75, and continue to invest $75 at…

A: Future value  The value of a current asset at some point in the future, based on an estimated growth…

Q: Assume we have a $500,000 mortgage at a 3.5% original interest rate, 30-yearterm, and monthly…

A: Step 1:Calculation of monthly payment @ initial interest rateThis is what the formula looks like for…

Q: A) How much should you deposit at the end of each month into an investment account that pays 8.5%…

A: A.  Compound interest is the interest that the amount will be calculated on both principle and…

Q: You are planning to make monthly deposits of £400 into a retirement account that pays 7 per cent…

A: The future Value accumulated after depositing a regular amount for the period compounding with the…

Q: You are paid £3,500 annually for 8 years, with the first payment due in one year and the last…

A: Present value is the current worth of a future payment or stream of payments, taking into account…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…

A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: compute the initial value of the money if the borrower needs deposit the accumulated amount of…

A: With the application of time value of money, we can compute the initial deposit which will become $…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: Find the present values of these annuities due. a. What is the present value of $4,000 per month…

A: PMT=$4000 per monthNumber of payments=n=12Interest rate=4.8%Monthly interest rate=r=4.8/12=0.4%Find…

Q: You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly.…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: Assume you are to receive a 5-year annuity with annual payments of £1,000. The first payment will be…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: Assume that today you borrowed $30,000 at 4.25% compounded monthly and will pay off the loan with…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: Suppose that you are to make annual deposit of $3,000 into a retirement account that pays 11%…

A: Future value of the amount is the worth of the current amount in some future specified date at given…

Q: You are planning to make monthly deposits of $300 into a retirement account that pays 8 percent…

A: Future value is the amount of money worth at a future date. This can be calculated based on the time…

Q: A man intends to buy a machine via loan. He does so by depositing a down payment followed by…

A: In this we need to find present value of both and from that we can get initial deposit.

Q: ou plan to make twelve monthly payments of $1000 at the end of each month in the year 2024. Given…

A: Present value is the equivalent of the future cash flow that is required in the future based on the…

Q: Assume  you have secured a loan of $10,000 from a bank  which will be paid in one year. The bank has…

A: Month Instalment Interest Paid = Opening Balance  x 0.31% Principal Opening Balance Closing Balance…

Q: 2. You deposit P25,000 annually for 6 years on an investment that has a rate of return of 5.2% per…

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

Q: An investor puts P200 in a money market account TODAY that returns 3% with monthly compounding. The…

A: Investment = 200 Monthly Compounding Return % = 3%/12 per month = 0.25% per month Time Period = 2…

Q: You can invest SGD 100,000 in fixed deposit with a bank. The term of the deposit is 6 years, and the…

A: Here, To Find: Future value (FV) =?

Q: Suppose you make 1000 pbr monthly deposits to a retirement plan that pays interest at a rate of 30%…

A: Using Excel FV function

Q: At an interest rate of 8% per year, the amount you must deposit in your retirement account for years…

A: The principle of present value indicates that a sum of money now is worth more than the same sum of…

Q: A9. If the nominal rate of interest on a loan is 16.3% and interest is compounded monthly, what is…

A: Using excel effective rate function

Q: Assume a 360 day year, when a 48,000, 90 day, 8% interest bearing note payable matures, the total…

A: Total payment = Note + Interest   Interest = $48,000 * 8% * 90/360 Interest = $960

Q: promises to quadruple your investment over a period of 15 years based on semi-annual compounding.…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Determine the number of the years if a deposit of P905,000 will earn P105,350 if invested at the…

A: Given the deposit amount, the interest rate and the amount of interest, the number of years can be…