Calculate the accumulated value after 13.5 years of deposits of $470 made at the beginning of every three months and earning interest at 7.2% compounded quarterly. Select one: a. $43074.02 b. $38214.40 C S18294.59 d. $32954.91

Calculate the accumulated value after 13.5 years of deposits of $470 made at the beginning of every three months and earning interest at 7.2% compounded quarterly. Select one: a. $43074.02 b. $38214.40 C S18294.59 d. $32954.91

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 26P

See similar textbooks

Related questions

Q: On a $600,000 home mortgage loan with a15-year term at 10.5% APR compounded monthly, compute the…

A: The loan amount will be paid on monthly basis which consists of principal and interest. The monthly…

Q: Compute the future value of the following deposits made today: a. $10,000 at 6.75% compounding…

A: The future value of a certain deposit is the value of the deposit accumulated with interest. It is…

Q: Rounded to the nearest cent, find the amount of money accumulated in 5 years if $14000 is invested…

A: Given information: Present value amount is $14,000 Number of years is 5 years Interest rate is 10%

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…

Q: A debt of $6361 borrowed today will be due in 4 years and 6 months. Determine the accumulated value…

A: Formula for Compound Interest: Accumulated value=Initial principal balance×1+RateNumber of times…

Q: Deposits of $500 are made at the end of every month for five years into an account earrfing 4.5%…

A: In this we have to calculate future value FACTOR and from that determine the future value of money.

Q: Suntech Distributors, Inc., deposits $4,000 at the beginning of each 3-month period for 7 years in…

A: Formula: A = P [ 1 + ( r / N )NT ] Interest : Interest is a fee charged on the borrowed amount.

Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. If…

A: FV of annuity = P * [(1+r)^n-1] / r Where, P = amount of each deposit r = rate of interest per…

Q: What deposit made at the beginning of each month will accumulate to $120,000 at 30% compounded…

A: The deposit amount can be calculated with the help of future value of annuity due function

Q: To accumulate 103,404,000 at the end of 9n years, deposits of 45,007 are made at the end of each of…

A: Required:Determine the interest rate, i.

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

Q: se the appropriate compound interest formula to compute the balance in the account after the stated…

A: Given information : Investment amount $26,000 Time period (years) 7 Interest rate (Annual) 2%

Q: What is the accumulated value of deposits of $1020.00 made at the end of every six months for three…

A: Accumulated deposits include the amount deposited and compounding interest accumulated over the…

Q: An investor deposits £1,000 into an account that pays monthly compounded interest of 9% (nominal…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Q: An initial investment of $480 earns interest for 7 years in an account that earns 13% interest,…

A: Future Value = Present Value * (1+r)^n where r =rate of interest per period i.e. 13%/4 = 3.25% n =…

Q: The maturity value of a savings account that belonged to Peach Company was $47,333.50 The interest…

A: Given that: Future value = $47,333.50 Interest rate (First 4 years) = 4% compounded semi annually…

Q: Suppose a certain manufacturer deposits $3,000 at the beginning of each 3 month period for 6 years…

A: a) The question gives the following information:

Q: use the compound intrest formula for compounding more than once a year to determine the accumulated…

A: Future value = Present value * (1+rate per period )^no. of period

Q: Deposits of $1,320 are made into an account at the beginning of every 6 months for 2 years and 6…

A: Deposits made are of $1,320 Type of payment is begining of the period Interest rate is 3.07%…

Q: Determine the accumulated value after 11 years of deposits of $278.00 made at the beginning of every…

A: Compound interest:- Compound interest is defined as the interest on loan or deposit, that can be…

Q: Contributions of $146.30 are made at the beginning of every three months into an RRSP for 17 years.…

A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth…

Q: Find the amount at the end of 2 years and 6 months if P2,000 is invested at 71% compounded…

A: Invested amount (X) = P 2000 n = 2 years 6 months = 10 quarters r = 71% per annum = 17.75% per…

Q: How much is P 100,000.00 worth in three years if deposited in a continuously compounded account with…

A: Investment 100,000 Period in years 3 Interest rate 3%…

Q: Copy of Find the amount at the end of 3 years and 10 months if P3,000 is invested at 89% compounded…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Determine the amount after 6 years assuming P25,000 was the initial deposit and succeeding deposits…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

A: Future Value = Present Value * (1+r)^n Where, r = rate of interest per period i.e. 5.40%/12 = 0.45%…

Q: JP just made a deposit of $4,321 is made today in an account earning 5.3% APR compounded annually.…

A: Data given: P=Deposit amount = $4,321 r=Rate = 5.3% APR compounded annually n= 15 years Required:…

Q: Suntech Distributors, Inc., deposits $5,00 at the beginning of each 3-month period for 6 years in an…

Q: An investment of $4,000 accumulates at a force of interest δt = 0.022t. Calculate the annual…

A: In order to solve for the rate of interest it is important to solve the equation given.

Q: If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account…

A: Annual deposit (P) = $ 2500 Annual interest rate (R) = 0% Number of annual deposit (N) = 12

Q: You deposit $400 in an account earning 8% coumpound interest for 2 years. Find the future value and…

A: Given That: P=$400 r=0.08 t=2 years

Q: If you make quarterly deposits of $1000 for 15 years into an account that compounds interest at 1.5%…

A: Quaterly deposit is $1000 Time period is 15 years Interest rate is 1.5% To Find: Future Value

Q: Find the final amount of money in an account if $8,200$8,200 is deposited at 7%7% interest…

A: Compound interest: It is the interest on interest calculated on the principal amount of a loan or a…

Q: An amount of $1,000 is deposited in an account that carries a rate of 8% compounded semi- annually.…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: A deposit of $800 is planned for the end of each year into an account paying 8 percent/year…

A: We need to use future value of ordinary annuity to solve this problem Future value of…

Q: On each December 31, you plan to transfer $2,000 from your checking account into an…

A: Future value: It refers to the sum of money that will be received by the investor in the future by…

Q: Calculate (a) the interest payable and (b) the total amount owing on the following deposits at…

A: Here in this question we are required to calculate simple interest. Simple interest is a interest…

Q: Find the final amount of money in an account if $8,900 is deposited at 7% interest compounded…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: What is the size of deposits made at the end of each period that will accumulate to $67200 after…

A: Formula: Size of deposits = P x [ 1 + R / T ] MT R = rate of interest M =Number of periods T =…

Q: Use the compound interest formula to compute the balance in the following account after the stated…

A: Compound interest is the interest you earn on interest.formula fro compound interest is=A(1+r)twhere…

Q: Calculate (a) the interest payable and (b) the total amount owing on the following deposits at…

A: Formula: Maturity value = Principal + Interest amount

Q: How much must be deposited at 6% each year beginning on January 1, year 1, in order to accumulate…

A: This is the question related to compound interest and Future Amount. We use Principal , Interest and…

Q: Contributions of $142.16 are made at the end of every quarter into an RRSP for 18 years. What is the…

A: Quarterly contribution (P) = $142.16 Period = 18 Years Quarterly periods (n) = 18*4 = 72 Interest…

Q: Calculate the future worth of 20 annual $4,000 deposits in a savings accountthat earns 8% compounded…

A: The future value of periodic investment consist of principal payments and interest accumulated on…

Q: Determine the value at the end of three years of a $10,000 investment (today) in a bank certificate…

A: The formula to calculate future value is given below:

Q: You deposit $300 in an account earning 5% coumpound interest for 4 years. Find the future value and…

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

Q: If $1,500 is deposited in a savings account at the beginning of each year for 20 years (a total…

A: The formula to compute future equivalent worth of present value:

Q: What is the size of deposits made at the end of each period that will accumulate to $67 200 after…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Question

Calculate the accumulated value after 13.5 years of deposits of $470 made at the beginning of every three months and earning interest at
7.2% compounded quarterly.
Select one:
a. $43074.02
b. $38214.40
C $18294.59
d. $32954.91

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

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. $19561.5
Calculate the future worth of 20 annual $4,000 deposits in a savings account that earns 8% compounded monthly. Assume all deposits are made at the beginning of each year. (a) $196,010 (b) $188,196 (c) $190,162 (d) $199.279
Determine the accumulated value after 5 years of deposits of $302.00 made at the beginning of every year and earning interest at 6%, with the payment and compounding intervals the same.
Calculate the future worth of 20 annual $4,000 deposits in a savings accountthat earns 8% compounded monthly. Assume all deposits are made at thebeginning of each year.(a) $196,010(b) $J88,196(c) $190,162(cl) $199.279
Assume an individual is wanting to determine the monthly deposits if after 1 year based on monthly deposits, the account now has $12,336.42 at 6% continuous compounding. Determine the monthly deposit. $900 $1,000 $1100 $1200
If you deposit $368.00 into an account paying 15.46% annual interest compounded quarterly, how many years until there is $76,431.00 in the account?
If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account offering a stated annual rate of interest r = 0%, find the balance in the account 12 years from today (at the end of year 12).
Suppose you make quarterly deposits of $1,500.00 into an account that pays an interest at a rate of 6% compounded monthly. Find the balance of the account at the end of year 2.
What is the future value of $100 invested in an account for eight years that earns 10% annual interest, compounded semiannually (rounded to the nearest whole dollar)? a. $214.b. $216.c. $218.d. $220.
5. A deposit of $2450 is made into an account drawing 4.26% interest compounded quarterly. Find the future value 14 years after the deposit and find the amount of compound interest earned.
Determine the interest earned after 10 years if $200 is invested in each of the following accounts: a. An account earning 5.4% interest compounded monthly
Suppose you invest $1,000.00 in an account with an annual interest rate of 6% compounded monthly (6%÷÷12 = 0.5% each month). At the end of each month, you deposit $275.00 into the account.Use this information to complete the table below. Round to the nearest cent in each step as needed. Month Prior Balance 0.5% Intereston Prior Balance Monthly Deposit Ending Balance 0 $1,000.00 1 $1,000.00 $275.00 2 $275.00 $1,561.40 3 $1,561.40 $275.00 4 $9.22 $275.00