how much money can be withdrawn from this account immediately after the 20th deposit? Round off interest rate to 5 decimal places

Q: You deposit $300 each month into an account earning 7% interest ce a) How much will you have in the…

A: Based on an expected interest rate or rate of return, the future value reflects how much money…

Q: How much will accumulate in three years by depositing $540 at the end of each of the next 12…

A: The future value can be compared by looking at how much money you will have in the future from the…

Q: You have just received a bonus of $10,000 and are looking to deposit the money in a bank account for…

A: Value after a period can be calculated as: = Principal * (1 + Periodic Interest rate)^number of…

Q: You decide to withdraw $13,000 at the beginning of each quarter for 10 years from your savings…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

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

A: In this we have to calculate present value of ANNUITY FACTOR and from that we can get the six…

Q: Your bank pays 2.9% interest per year. You put $1,500 in the bank today and $550 more in the bank in…

A: The amount is two years will be the future value of the deposits made at times 0 and 1.FV=…

Q: Today You deposit 2000 dollars on Your bank account for 3 years. The annual interest rate is 5%. How…

A: Future value can be calculated usingFV = PV* (1 + r / n)ntWhere,PV = Present valueFV = Future valuer…

Q: Lourdes has just retired and plans to consume $11093 from the retirement account every year for the…

A: A retirement account is an account that is opened by someone to have the required balance in hand at…

Q: If you deposit $300 at the end of every month in a savings account that pays a nominal APR of 5% per…

A: Compounding refers to phenomenon of calculating interest where interest is added to the principal…

Q: A woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly.…

A: Here the deposits are made annually while the interest is compounded monthly. Thus we first need to…

Q: An investment account returns 6.29% annually. You want to withdraw $ 10,000 each year for the next…

A: The present value of an annuity is the value today of a series of equal payments made at fixed…

Q: A young man saved his money every quarter for 5 years into his bank account. He deposits P2,000 per…

A: Here,

Q: mpounded monthly. You plan to put $1,000 per year over the next 2 years as well.  How much will you…

A: To determine the value of the bank account, we need to determine the effective annual rate given the…

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: You just deposited $15,000 in a bank account that pays a 4.0% nominal interest rate, compounded…

A: The future value can be calculated using the following formula

Q: You have $5,340.25 in your savings account today. Every two weeks (26 times a year) $200 will be…

A: A savings account is a deposit account that pays interest and is kept at a bank or other financial…

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: Compound = monthly = 12Interest rate = r = 5.5 / 12 %Time = t = 11 * 12 = 132Future Value = fv =…

Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…

A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…

Q: younger brother's savings account, with the first deposit being made on your brother's fifth…

A: The present value is the amount without interest and future value is the amount with accumulated…

Q: Assuming that your Mother wishes to make annual deposits into your younger brother's savings…

A: Present Value of the gradient “G” 400 for 4 years and present Value of “A” $2000 for 4 years is the…

Q: 0% compounded annually and after the last deposit the interest rate changed to 129% per year…

A: In this we have to calculate present value of cash flow from that we can get the required value.

Q: A young man saved his money every quarter for 5 years into his bank account. He deposits P2,000 per…

A: i=(1+(r/m))^(m/q)-1 m= original compounding per period=12/2=6 q=new compounding per period=12/3=4

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

A: Before making any calculation let us first arrange these cashflows into a cashflow time line chart.…

Q: How much would you need to deposit in an account now in order to have $20,000 in the account in 4…

A: Interest rate = 5%No. of years = 4FV = 20000

Q: 27. You hope to accumulate an account balance of $20,000 in 4 years by making a single deposit…

A: We need to calculate the amount to be deposited today - present value (PV)Future Value (FV) =…

Q: If you want to have $22,327 in fifteen years, how much do you need to deposit in a bank account…

A: The deposit required today is calculated as the present value.

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: Current Attempt in Progress Your finance textbook sold 51,000 copies in its first year. The…

A: Part 2: Explanation:Step 1: Determine the interest rate per compounding period:The annual interest…

Q: 1. At the beginning of the year, P5, 000 was invested in a deposit account earning 8% annually. How…

A: Principal= P 5,000 Interest= 8% T=1 year Interest= Principal × Rate × Time             =5,000× 8% ×…

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…

A: The question is based on the concept of Annuity

Q: You are planning to save to purchase a car in 23 years for $28,000. You have opened a bank account…

A: Annuity is a series of equal payments made for some particular period of time . When payment is made…

Q: At the beginning of the year you deposit $3,000 in a savings account. How much will accumulate in 3…

A: Future value refers to the value of current assets at some future date on the basis of the assumed…

Q: A woman deposits an annual bonus into a savings account that pays 6% interest compounded monthly.…

A: This is a growing annuity and hence can be solved using the formula for growing annuity.

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…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.