Answered: Determine the interest earned after 10…

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

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: What is the future value of $2,500 deposited at the end of each quarter year for 15 years earning 8%…

A: In the given question we need to compute the future value of $2500 deposited at the end of each…

Q: What is the present value of $1,150 deposited at the end of each quarter year for 12 years earning…

A: Calculation of Present Value:The present value is $38,124.16.Excel Spreadsheet:

Q: Deposit of ₱1,000 is made at the end of the first year and increases by ₱ 500 for the next following…

A: Present value is the present worth of any sum of money to be received in the future at a specified…

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

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Solve for the compound interest earned if 10,000 pesos is invested for 1-1/2 years at 8% compounded…

A: Compound interest refers to the interest calculation mechanism where the previous period interest is…

Q: Find the final amount of money in an account if $700 is deposited at 6.5% interest compounded…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: Calculate the repayments required to fully repay $100 000 borrowed at 6%p.a. for 10 years with…

A: Borrowed amount "PV" is $100,000 Time period is 10 years Total number if quarters "N" are 10×4=40…

Q: 18,000$ is deposited for 9 years in an account earning 5% interest. Round answers to two decimal…

A: The future value of an amount deposited in the account is the value of the amount deposited on a…

Q: An investment of $1,050 is made in an account compounded semi-annually at 6.8%. How much will the…

A: It can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv], [type]) Rate The…

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: Compute the compound amount and the interest on a loan of $10,500 compounded annually for four years…

A: The computation of compound amount is as follows:Hence, the compound amount of loan is $16910.355.

Q: Find the amount at the end of 5 years and 4 months if P8,000 is invested at 93% compounded…

A: Invested amount is P8,000 Interest rate is 93% compounded quarterly Time period is 5year and 4…

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: If $300,000 is deposited at a rate of 12% compounded bimonthly, determine the compounded interest…

A: Note: It has been assumed that bi-monthly means something which has occurred once in two months.…

Q: Find the amount invested in a saving account so that the balance at 7% interest compounded annually…

A: The amount invested today can be computed with the help of present value function.

Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…

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

Q: If $200 is invested at 5% compounded quarterly, what is the interest earned after: a) 6 years,…

A: The formula used as follows: A=P1+rnn×t

Q: Compound Interest If $10,000 is invested at 12%interest, compounded monthly, find the interestearned…

A: Step1: Introduction Compound Interest: It refers to interest payments that are made on the sum of…

Q: Suppose you invested P4,232 bimonthly over a period of 15 years. Find the accumulated amount if…

Q: If $1,000.00 is invested in an account for 30 years. Find the value of the investment at the end of…

A: The conceptual formula used:

Q: Find the amount at the end of 2 years if $1,000 was invested at 5% simple interest; 5% compounded…

A: The term time value of money refers to the value of the money in the future of which the investment…

Q: Solve for the compound amount and compound interest earned if $ 825 is invested for 10 years at 4%…

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

Q: If $400 is invested at 10% compounded quarterly, what is the interest earned after: a) 6 years…

A: Compound Interest: It refers to the additional interest added to the principal amount of any deposit…

Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…

A: Present value (PV) is $39,000. The semi-annual rate (r) is 3% (6% / 2). The number of compounding…

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: What is the balance in an account at the end of 10 years if $2,500 is deposited today and the…

A: In the given question we are required to calculate the future value from the following details:…

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: Find the compound amount if P5,000 is invested at 10% compounded semi-annually for 2 years.

A: Compund Amount = PV * (1 + r/n)^ntWhere PV = Present Value = P5,000r = rate of interest = 10%n=…

Q: 100 is deposited into an account at the end of each 3-year period for 36 years. The accumulated…

A: Annual effective rate is the real rate at which the money deposited grows.

Q: What is the future value of $7,200 deposited at the beginning of each year for 7 years earning 8%…

A: Calculation of Future Value:The future value is $69,383.72.Excel Spreadsheet:

Q: Find the compound interest accumulated on BD 14500 at the end 9 years if it is invested at 4%…

A: Compound interest is the interest earned on the principal as well as on the interest earned…

Q: Determine the amount of interest earned on a $1200 investment if it is invested at 5.5% annual…

A: The question is based on the concept to calculate the future value of an investment for a given rate…

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: A nominal interest of 3% compounded continuously is given on the account. What is the accumulated…

A: In Continuous compounding, compounding is done an infinite number of times.

Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…

A: Future value is the accumulated value of an investment. It is the total of the initial deposit and…

Q: Suppose that $3000 is deposited in a saving account at the rate of 8% per year. Determine in details…

A: Given data, Principal (P) = $3000 Interest rate (r) = 8% per year…

Q: Compare the interest earned by P dollars at i% per year simple interest with that earned by the same…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: What is the amount of interest earned on $2,000 for five years at 10% simple interest per year?

A: Simple Interest: It is one of the easiest method to compute the interest on a loan. Simple interest…

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: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…

A: Therefore, the future value if interest is compounded semiannually is $43,893.84.

Q: 100 is deposited into an account at the beginning of every 4-year period for 40 years. The account…

A: The question is based on the concept calculation of future value by use of annuity due method.

Q: Deposits of $100 per week are made into an investment account that pays interest of 6% per year…

A: Given information: Deposit amount $100 per week Interest rate is 6% Compounded quarterly

Q: Find the final amount of money in an account if $4,900 is deposited at 4.5% interest compounded…

A: Compounding is a technique through which FV of present amount is computed by using appropriate rate…

Q: FIND THE AMOUNT OF 12,000 AFTER 2 YEARS COMPOUNDED ANNUALLY, THE RATE OF INTEREST BEING 5 DURING THE…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Question

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

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 by step

Solved in 2 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

If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Find the final amount of money in an account if $7,400 is deposited at 7.5% interest compounded semi-annually and the money is left for 6 years.
Determine the amount of money in a savings account at the end of 5 years, given an initial deposit of AED 40,000 and 8 percent annual interest rate when interest is compounded (a) annually, (b) semiannually, and (c) quarterly.
Determine the interest earned after 10 years if $200 is invested in each of the following accounts: a) an account earning 5.4% interest compound monthly
Determine the interest earned after 8 years if $3000 is invested in each of the following accounts. A) an account earning 5.29% interest compounded daily B) an account earning 5.14% simple interest
You decide to invest $7,500 into an account that pays 1.1% annual compound interest. Write an equation for the balance of the account (B) after t years.
Find the simple interest on a $1700 investment made for 2 years at an interest rate of 6 % / year What is the accumulated amount ?
Find the amount invested in a saving account so that the balance at 7% interest compounded annually is $6,710 after 11 months.
Find the final amount of money in an account if $700 is deposited at 6.5% interest compounded annually and the money is left for 5 years.
Determine the interest earned on $5000 deposited in a savings account, for 10 years, based on one of the following quoted interest rates: 6% compounding annually, semiannually, quarterly, monthly, and daily. The solution to this problem is presented in Table 20.5 .
Calculate the future value (in dollars) of $1,150 deposited into an account earning an annual simple interest rate of 6% compounded daily after 3 years
Suppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest credited to the account at the end of each year. Assuming that no withdrawals are made, complete the following: a. Find the balance in the account after 5 years. b. Find the balance of the account after 9 years and 10 months.