Chris makes a deposit of $500 into his savings account at the beginning of each year for the next 20 years. If the account earns 5% interest rate per year compounded annually, what will be the future value at the end of 20 years?

Q: Determine the equivalent present amount of a series of equal quarterly amounts of $10,000 for five…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Jack borrowed $10,000 from Mr. Jill on July 11, 2018 and promised to pay it by December 21, 2018.…

A: Given the borrowed amount = $10000 Interest rate = 15% Total number of days between the given months…

Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: Given,  Quarterly Deposit= $1,250 Monthly Interest Rate=6% Therefore, Quarterly Interest Rate=…

Q: Explain the true effect of more frequent compounding on annual interest amounts?

A: With more frequent compounding, the returns are higher. With the increase in compounding periods,…

Q: 1. Nick will invest $1,000 in his savings account. His bank pays a yearly interest rate of 6%. a.…

A: Here, given information is: Principal amount (P): $1,000 Interest rate (r): 6% yearly Time period…

Q: What is the future value of $3,000 saved for 6 years at 4% interest

A: FV = PV ( 1 + r )^t FV = Future value PV = present value i = interest rate compounded annually t =…

Q: What deposit today is required for it to be worth $150,000 in 25 years if the deposit earns 5%…

A: Interest is the cost of borrowing. Compound interest is calculated on the principal amount as well…

Q: Would you rather have $1,000 today or $1,250 in 3 years at a 8% annual interest rate compounded…

A: Future value can be calculated by using the following formula.

Q: How long (in years) will it take to quadruple a money if it earns %4.7 compounded semiannually?

A: Compounding interest refers to the interest that accumulate on both the principal and interest rate.…

Q: a. What is the effective annual interest rate if the nominal annual interest rate is 10%, compounded…

A: a.The effective Annual interest Rate can be calculated with the help of the nominal annual interest…

Q: A bank saving account offers 4% compounded on a quarterly basis. A customer deposit $200, in this…

A: Since the bank offers 4% compounded on a quarterly basis, the interest rate is 1% per quarter. The…

Q: How many years will it take for an investment to be twice its value if it earns 8% compounded…

A: We use the rule of 72 here. No. of years needed to double any investment = 72/ interest rate

Q: If you invest $4,000 at 3% interest compounded monthly, how long will it take you to reach $5,000 ?

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: You deposit $5000 each year into an account earning 8% interest compounded annually. How much will…

A: Uniform annual deposit (A) = $5000The interest rate on the deposits is 8% compounded annually. So i=…

Q: A student obtains a loan to pay one year of college tuition, which costs $18,000 with 6% which he…

A: Given, Cost- $18000 ROI- 6%

Q: Jack promises to pay $1000 at the end of 6 months in obtaining a loan from a banker B who charges 6%…

A: Annual interest rate can be calculated by using the following formula.

Q: An investment of $3523 is made at the beginning of each month for 5 years and 10 months. How much…

A: Total months(n) =years*12+months=5*12+10=70 interest rate per month (r)=1% Amount invested per month…

Q: You deposit $2000 in an account earning 8% interest compounded continuously. How much will you have…

A: When you earn compound interest, you earn interest on both the money you've saved and the money…

Q: Compute for the effective interest rate. Payment period = semi-annual Interest period = 10.2%…

A: Here, given information is: Nominal interest rate (i): 10.2% compunded yearly Payment period (Time…

Q: How long will it take money to quadruple itself if invested at 13% compounded annually?

A: Money quadruples meaning current value becomes four time in n years.

Q: account today that earns 5.5% interest compounded monthly if you want to have $1500 saved in 2 years

A:

Q: For the next 15 years, you will deposit $1,500 every month in a savings account. The account pays 6%…

A: An ordinary annuity is a series of equal payments made at the end of each period, such as the end of…

Q: How many years will it take an investment to triple if the interest rate is 8%compounded?

A: The rule of 115 can be used to calculate the number of years that take an investment to triple.

Q: Solve the problem. The average cost of a 4-year college education is projected to be $120,000 in 17…

A: Future Value (FV) = $120,000Annual Interest Rate (r) = 9% or 0.09Compounding Frequency (n) = 4 times…

Q: How much must be deposited at the beginning of each year in an account that pays 5%, compounded…

A: The compound interest formula is given as: A=P(1+r)t Where,  A is the final amount compounded on an…

Q: Please answer completely and clearly. , year יויויויויי in millions whatis the future worth of these…

A: We have given the cash flow in which yearly payment is made but the rate of interest is compounded…

Q: An investment earns 2.5% compounded monthly. Find the value of an initial investment of $5,000 after…

A: Given information: Interest rate (r): 2.5% Compunding period (m): 12 (monthly) Principal amount…

Q: How long (in years) will it take to quadruple a money if it earns 2% compounded semiannually?

A: Compounding refers to a process in which the interest is accumulated on the principal amount as well…

Q: Miho invested $5000 in a bank that pays an annual interest rate of 9% compounded continuously. What…

A: Invested amount = $5000 Annual interest rate = 9% Total time period = 15 years

Q: ill deposited 100,000 pesos in bank account earning interest at the rate of 10% compounded…

A: Amount deposit = 100,000 r = 10% n = 10

Q: 17. What is the effective annual interest rate if the nominal interest rate is 6%, compounded…

A: Formula used - Effective annual interest rate = (1 + (nominal rate / number of compounding periods))…

Q: Ms. Roberts decided to invest some money in an insurance company with an interest rate of 9%…

A: We use the rule of 72 here. Rule of 72: Years to double the principal = 72/Interest Rate

Q: Liz plans to deposit $10,000 in the bank now and another $5,000 two years from now. If she plans to…

A: Deposit = 10,000 deposit after 2 years = 5,000 withdraw after 5 years = 8,000 interest rate = 10%

Q: 45.

A: Monthly average in 2017 = $71.88 Increase in annual rate (r) = 3% per year n= 2020 - 2017 = 3 years

Q: What simple interest rate (in %) is equivalent to 5% compounded quarterly if money is invested for 9…

A: Answer to the question is as follows

Q: What is the present value of a series of 6 payments of $5,000 each at 7.25%compounded annually?

A: here series of payment of $5000 is made at each year at constant interval, this is called the…

Q: Suppose that $100 is invested for five years at an interest rate of 8% per year, compounded…

A: Given: Amount=$100 Interest rate=8% Number of years=5 To find: Amount at end of 5 years