Calculate the future worth of 20 annual $4,000 deposits in a savings account that earns 8% compounded quarterly. (Draw the Cashflow)

Q: iii) Someone borrows $ 45,000 at a rate of 20% per annum and after one year begins to pay annual…

A: Loan amount (PV) = $ 45,000 Annual interest rate (r) = 20% Number of annual payments (n) = 5

Q: A person wishes to accumulate Php500,000 over a period of 15 years in his savings account, what…

A: The given scenario is a basic case of annuity. Inorder to find the yearly payment, we use the…

Q: In 3 years, you will receive $4,000. One year after that, you will receive the first of 8 annual…

A: Future Value: It represents the future expected value of the current cash flow stream compounded…

Q: 4-18. Calculate the compounded future value of 20 annual payments of $5,000 each into a savings…

A: To determine the compounded future value, we need to use an annuity formula. Since the payments are…

Q: Suppose that a person deposits $2500 in a savings account at the end of each year for the next 15…

A: Here, Annual Deposits is $2,500 Interest Rate is 8% Compounding Period is Daily i.e. 365 Payment…

Q: What lump sum of money must be deposited into a bank account at the present time so that $500…

A: Monthly withdrawals six years from now is $500 Time period of withdrawal is 5 years interest rate…

Q: You are making $5,000 monthly deposits into a fund that pays interest at rate of 6% compounded…

A: We need to use the concept of time value of money (TVM) to solve the question. According to TVM, the…

Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…

A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…

Q: You expect to receive two cash flows: $34,000 paid in 5 years and $51,000 paid in 10 years. You'll…

A: Solution:- When some amount is invested somewhere, it earns interest on it. The amount initially…

Q: The present value of a savings account that will earn 3 percent annual interest and be worth $2,000…

A: Given: Rate of interest = 3% Future value is $2,000 Formula to calculate present value: Where,PV is…

Q: Assume that you want to have $ 2900 saved in a sinking fund in 1 year. The account pays 5%…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. An…

A: First, we need to convert the interest rate compounding frequency from continuous to annual because…

Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…

A: There are various types of Bank Accounts, one of the basic and most commonly used is Saving's…

Q: A Student loan totals $30,000 at graduation. The nominal interest rate is 12% compounded monthly,…

A: Total payments= 32 Total amount of loan (L)= 30000 Rate of interest (r) = 12%/12 = 1.0% per month…

Q: sh of Php 50,000 invested today will realized an annual cash returns for five (5) years at 8% rate…

A: The given problem can be solved using PMT function in excel. PMT function computes savings/…

Q: Find the amount the bank will produce if $2100 is invested for 5 years, compounded daily at 6.48%

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: What is the present value of a $120,000 cash flow to be received at the beginning of each of the…

A: Amount  of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…

Q: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

Q: Čalculate the compounded future value at EOY 20 of 20 annual payments of $5,000 each into a savings…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: An investor makes 10 consecutive annual deposits of S.R. 1,500,000 in a saving account that pays…

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

Q: The present worth of the cash flow with payments in the second through seventh year for amount of…

A: Present value of cash flow in year n, PVCF n = CF x (1+i)-n where, CF = Cash flow of year n n = no.…

Q: What amount of money must invert in a bank that pay the 25 % annual, capitalizable monthly, with the…

A: Given: Value of money at the end (FV) = $3,000,000 Annual interest rate = 25% Compounding periods…

Q: Assuming an interest rate of 10%, how much (rounded to nearest dollar) will need to be deposited in…

A: Annual deposit = Accumulated saving at the end of 8th year / Future value factor at 10%, 8 years

Q: What should the present value of a savings account be to cover $30,000 of college expenses in 12.5…

A: Compound = Quarterly = 4Future Value = fv = $30,000Time = t = 12.5 * 4 = 50Interest Rate = r = 7.5 /…

Q: 9th deposit is m

A: Given Information: Amount Deposited each year is P10,000 Time period is 9 years Interest rate is 14…

Q: Calculate the dollar amount that would be in a savings account at the end of 5 years, given an…

A: Initial investment (P) = 701 dollars Rate of interest (i) = 2.76% (Compounded monthly) Time period…

Q: cashflow diagram.

A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…

Q: An ambitious saver plans to deposit $1,000 in a bank account starting 1 quarter from now and wants…

A: Future value : Future value is the value of a current asset at a future date based on a projected…

Q: Calculate the Present value of Rs. 100,000 at the rate of 15% paid to you in 5 years. Calculate the…

A: The present value is the discounted value of the amount to be received in the future.

Q: Draw cash flow diagram and show your solution An individual makes six annual deposits in a savings…

A: Cash flow and profit are two crucial financial variables in business, and it's not uncommon for…

Q: Calculate the initial amount that would be in a savings account at the beginning of 6 years, given a…

A: Given  Interest rate =  3.14% Number of years = 6 Years Final amount received = 256 Future value is…

Q: You wish to have an annual cash inflow of $48,000 at the end of each of 6 years. How much must you…

A: Cashflow(PMT) $48,000  Time (n) = 6 years  Rate (r) = 4%

Q: cash flow consisting of $15,000 per year in an amount at the end of each year for 10 years. The…

A: Present value is the equivalent value today of the future money that is going to be received based…

Q: At what rate must funds be continuously added to a savings account in order to accumulate $13,000 in…

A: Amount to accumulate = $13,000 Time period = 5 years Interest rate = 6%

Q: How do I create cash flow for a surplus note ? I bought $25,000,000 at 9% interest for a 30 year…

A: The cash surplus or deficit is calculated by deducting cash disbursements from cash receipts.…