Assume you have invested $10,000 into a bank at an interest rate of 6% per year. The bank has promised to pay you ŞX every year starting in year one and continuing forever, in addition to $7X every five years starting in year five and continuing forever. Calculate the value of X.
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A: Amount of deposit=$5000Interest rate=5.3%Number of years=10
Q: A depositor currently has $6,000 and plans to invest it in an account that accrues interest…
A: Formula: Future value = Present value x ( 1 + r )N R = Rate of interest N = Number of years
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A: Given: Amount = 1,000 Years = 5
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A: Future Value: It refers to the value of any investment or asset in a specified future date.
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Assume you make 10 equal annual deposits of $2000 into an account paying 8% per year. How much is in…
A: The amount available 6 years after the last deposit will be the future value of this annuity.
Q: A student invests $1000 in a bank account that pays an interest rate of 3.25% compounded monthly. a)…
A: given, A=$1000 r=3.25% m=12
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A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
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A: The question is based on the concept of present value and future value calculation of cash flow.…
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A: We need to use future value of ordinary annuity(payment due at end of period) formula to get money…
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A: The time value of money implies that the cash in hand at present has a higher value than the cash…
Q: A bank projects that the value of an account they hold will be $2, 000, 000 in 5 years. If the…
A: Future value (FV) = $2,000,000 Period (t) = 5 Years Interest rate (r) = 5% Mathematics constant (e)…
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A: Now, Principal amount invested $ 5555.55 for 10 years at 4% compund interest.Therefore, the formula…
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A: PV=FV/(1+i)^n (PV= present value FV= Future value i= discount rate n= Number of period ) FV=…
Q: You want to accumulate $500,000 in a savings account in20 years. If the bank pays 6% compounded…
A: Future value: It can be defined as the value of an investment or any asset at a specified future…
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A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…
A: Future value of annuity due can be calculated by using this equation Future value of annuity due…
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A: Time Period = 7 years Future Value Required = 80,000 End of period deposits Interest Rate = 11%…
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A: The given problem can be solved using PV function in excel. PV function computes present worth for…
Q: Twelve years ago, you deposited $25,500 into an investment fund. Five years ago, you added an…
A: Given information: Deposited an amount of $25,500 for 12 years Additional $15,000 added into…
Q: How much will you have to save each year (to the nearest dollar)?
A: Time value of money (TVM) means that the amount of money received in the present period will have…
Q: You open a bank account, making a deposit of $300 now and deposit of $1000 every other year (the…
A: Amount deposit now for 10 years = 300 Amount deposited every year from & at the end of 2nd year…
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…
A: Time value of money techniques helps us to find the values of the deposits at different time…
Q: K Suppose you receive $500 at the end of each year for the next three years. a. If the interest rate…
A: Present value is the value right now of some amount of money in the future. Formula : PV = FV x…
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…
A: The effective annual rate is the actual rate earned after considering the compounding periods in a…
Q: You intend to accumulate RM5,713 in a bank savings account,4 years from now. How much savings must…
A: Future value = RM 5713 Period = 4 Years Annual interest rate = 10%
Q: If you deposit $13,.224 annually at the end of every year in a bank account paying 8% annually. how…
A: Annual deposit (D) = $13,224 Period (n) = 5 Years Interest rate (i) = 8% (or 0.08) Amount saved at…
Q: You have just deposited $12,000 into an account that promises to pay you an annual interest rate of…
A: Calculate the future value at the end of the year 8 as follows: Future value = Present…
Q: Suppose you loaned P200,000 from a local bank to be paid back uniformly in five years. How much will…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: A.) A man has deposited $50 000 in a retirement income plan with a local bank. This bank pays 9% per…
A: The requirement is to find the annual withdrawal. This amount will be the same for all 12 years. The…
Q: Suppose you receive $190 at the end of each year for the next three years. a. If the interest rate…
A: Present Value of annuity refers to the current value of all the series of payments or income at…
Q: Suppose that you have an opportunity to invest in a fund that pays 12% interest compounded annually.…
A: The investment is refer as engaging funds with an financial institution or bank at specific rate of…
Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an…
A: The question is based on the calculation of effective annual interest rate and Future value of…
Q: Assume that you keep RM5,555 in the savings account at Affin Bank with an interest of 15 percent per…
A: Saved amount = RM 5,555 Annual interest rate = 15% Period = 5 Years
Q: How much money will AJ have at the end of eight years? ii. Suppose AJ decided that they need to…
A: Formula for Future value Annuity F = P*[(1+i)n-1]/i where as; P = Yearly payment amount, i = Rate of…
Q: how much would you have saved at the end of six years? Round your answer to the nearest one dollar.
A: Future Value of Annuity = P x [{(1 + r)^n} - 1] / r Here, P = Periodic Deposit i.e. $46904 annually…
Q: Under your six-year savings plan, you deposit P1,000 now and P1,000 at the end of the fourth year,…
A: Future value is a value of an investment or asset on a specific date in the future. Compound…
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYour bank pays 8% interest, compounded annually. Use the appropriate formula to find how much you should deposit now to yield an annuity payment of $700 at the END of each year, for 8 years. A.$4,022.65 B.$4,344.46 C.$4,372.82 D.$6,195.96Classify the financial problem. Assume a 9% interest rate compounded annually. Deposit $200 at the end of each year. What is the total in the account in 10 years? A. sinking fundB.present value C.amortizationD. ordinary annuityE. future value Answer the question. (Round your answer to the nearest cent.)
- CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next eight years. How much will accumulate by the end of the eighth and final payment if the account earns 8% interest? Select one: a. $265,915 b. $256,951 c. $223.070 d. $200,000 e. $275,713Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semi-annually. If you make 20 consecutive semi-annual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20?a. $52,821.19b. $57,900.83c. $58,988.19d. $62,527.47e. $64,131.501.Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of every six months, for 17 years if a bank pays 4% interest, compounded semiannually. (Round your answers to the nearest cent.) $ 2.A bank pays 6% interest, compounded semiannually. Use the appropriate formula to find how much should be deposited (in $) now to yield an annuity payment of $700 at the beginning of each six months, for 16 years. (Round your answer to the nearest cent.) $
- a) The Hendrix Company needs to repay a note payable of $1.500.000. The company will make annual deposits of $100,000 into a savings account at the end of each of the next 10 years. Assuming that the savings account earns 8% interest compounded annually, will the fund balance be sufficient to repay the debt? n = 10 years 6=8%You are about to borrow $25,000 from a bank atan interest rate of 10% compounded annually. Youare required to make three equal annual repaymentsin the amount of $10,052.87 per year, with the firstrepayment occurring at the end of year 1. Show theinterest payment and principal payment in each year. Thanks.If Alvin invest 5500 to day in a saving account. The money will grow to 8500 at the end of the year 4. Assuming that the interest is paid once per year, the effective annual rate of the invent is a. 12.2 b. 12.9 c. 11.5 d. 13.6 E. 10.8
- Suppose that you deposited $1,000 in a savings account at the beginning of a year where the annual interest rate is 18%, for each month the annual effective rate is: Select one: a. $1195,61 b. $11561.5 c. %19.561 d. $19561.5You deposit $600 today into a fund that you intend to leave invested for 6 years. The fund earns 6% interest compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the value of the fund to be accumulated at the end of year 6? (Round future value answer to two decimal places (e.g., 52.75) and interest rate to one decimal place (e.g., 527.5).) Inputs Calculator N Keys Future value $ 6 I 6 PV 600I promise to pay you 25 annual installments of $5,000 starting five years from today. If the interest rate is 6%, how much are these payments worth to you today? A. $50,628.08 B. $117,924.53 C. $93,407.27 D. $63,916.78