$600 is deposited in a savings bank that pays 5±70 compounded quarterly.How much will the account contain after 9 years and 3 months?How much interest will be earned?

Deposit amount = $600 Interest Rate = 5±70 compounded quarterly i.e 4.3 or 5.7 compounded quarterly…

Answered: How much will the account contain after…

Business

Accounting

How much will the account contain after 9 years and 3 months? How much interest will be earned?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500…

A: Here, First Deposit is $10,000 Constant Decrease in payment is $500 Interest Rate is 15% Last…

Q: How much should be deposited deposited in a bank paying 1.15% compounded semi – annually to…

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: An investor deposits €10,000 in a bank account that pays simple interest at a rate of 5. What will…

A: Time value of money: The time value of money is the idea that the value of money received today…

Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…

A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…

Q: You deposit $3,000 in a bank account that pays 12% interest annually. How much will be in your…

Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…

A: Here, Deposit Amount today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…

Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…

A: Computation:

Q: $7000 are invested in a bank account at an interest rate of 5 percent per year. Find the amount in…

A: To find the amount after certain period we have to use the compound interest formula : A = P 1+r100n…

Q: A person deposits $200 every month for 7 years. If the account pays 4% compounded monthly then how…

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

Q: If P30,000.00 is deposited each year for 10 years, how much annuity can a person get annually from…

A: Amount deposited each year for 10 years is P30,000 Cost of monry is 14% Total number of withdrawals…

Q: If you deposit $8,000 in a bank account that pays 4% interest annually, how much will be in your…

A: Deposit=$8000Interest rate=4%Number of years=5

Q: If $35000 is put in a savings account paying interest of 5% compounded annually, what amount will be…

A: The future value of the invested amount is determined after compounded the interest accrued with the…

Q: If $1,000 is deposited each quarter in an account that earns 2% compounded quarterly, how many full…

A: The question is based on the concept of Annuity

Q: If $7,128 is deposited into an account that earns simple interest and it takes 9 years to earn…

A: Interest earned is 1796.26 No of years =9 Annual interest is = 1796.26/9 = 199.58

Q: How much would you need to deposit in an account now in order to have $6,000 in the account in 8…

A: In order to solve this question one has to solve for the present value to know how much to save into…

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: Present Value is referred to as the current value of future sum of the funds or the cash flows…

Q: If 6000 dollars is invested in a bank account at an interest rate of 8 per cent per Find the amount…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: Suppose you deposit $22.000 in an account today that pays 6% interest, compounded annually. How long…

A: Information Provided: Initial deposit = $22,000 Future value = $76,000 Interest rate = 6% compounded…

Q: How much money must initially be deposited in a savings account paying 5% per year, compounded…

A: Formulas:

Q: If you deposit 2500 into an account paying 11% annual interest compounded quarterly, how long until…

A: The number of years: An initial investment grows to a certain given amount at a specified interest…

Q: If P10,000.00 is deposited each year for 9 years, how much annuity can a person get annually from…

A: First we need to calculate future value of annuity for 9 years by using this equation FV of annuity…

Q: 1. If you deposit $28,688 annually at the end of every year in a bank account paying 5% annually,…

Q: Suppose that $850,000 is invested in a savings account paying 5.25% interest per year. (Round…

A: the given information amount = $850,000 interest rate = 5.25%

Q: You owe the bank $1,245 in 9 months. How much do you need to deposit in an account today, earning…

A: As per the given information: Amount owed to the bank - $1,245 in 9 months Earning - 3.25% APR…

Q: What is the amount a person would need to deposit today to be able to withdraw $6,000 each year for…

A: Present value (PV) is the current value of future money or cash flows at a specified rate of return.…

Q: 10 years ago, $1,500 was deposited in a bank account, and today it is worth $3,270. If the bank pays…

A: Given Information: Amount deposited = $1,500 Amount in account now = $3,270 Number of years = 10

Q: You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded…

A: Deposit amount (PV) = $ 1000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…

Q: Ten Thousand dollars is deposited into a savings account at 1.8% interest compounded monthly. How…

A: Using TVM Solver: (i) 10,000 +/- PV 1.8 i/y 10,665.74 FV CPT N = 3.61 It takes 3.61 months for…

Q: If you put $259 into a bank account that pays 3.5% interest, compounded 9 times per year, how much…

A: Workings:

Q: Suppose that $12,000 is invested in a savings account paying 5.6% interest per year. (a) Write the…

A: The future value is the amount to be received in future which were invested in an account which…

Q: how much should you deposit in a bank paying 2% compounded quarterly to accumulate an amount of…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: How much will you have in the account 30 years from now ? What is the interest earned on the…

Q: If a bank pays 17% compounded monthly, how much should be deposited now to have $1700 in 5 years…

A: Compound interest is the amount where interest with principle amount also get compounded. Amount=…

Q: If P30,000 is deposited each year for 9 years. How much annuity can a person get annually from the…

A: An annuity refers to a fixed amount or stream of payments or deposits made. Therefore, it helps in…

Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…

Q: How much do you need to deposit into a bank in order to receive proceeds of $200,000 in 5 years if…

A: The equation is, PV=FV÷1+in Where, Present value is represented by PV Future value is represented by…

Q: A person deposited an amount of 1000 dinars in a savings account, what is the accumulated amount in…

A: Future value of Investment: After compounding for a particular duration, interest rate, additional…

Q: Suppose that $8000.00 was invested in a savings account that paid 2.5% interest compounded…

A: Number of compounding periods = Number of years * 4 quarters per year = 3 * 4 = 12 quarters Rate…

Q: If you deposit $3,000 in a bank account that pays 12% interest annually, how much will be in your…

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

Q: 3 A bank account pays 5 % annual interest compounded semiannually. How much money should be…

A: Following is the answer to the question

Q: How much money should be deposited today in an account that earns 5.5% compounded monthly so that it…

A: Amount after 3 years = $12,000 Interest Rate= 5.5% per annum Interest rate monthly = 5.5/12=…

Q: How much money would be in an account if $6,200 is deposited at 2% interest compounded semi-annually…

A: Time value tells the amount received by an individual today is of more worth than the same amount…

Q: how much would you have saved at the end of six years? Round your answer to the nearest one dollar.

A: Future Value of Annuity = P x [{(1 + r)^n} - 1] / r Here, P = Periodic Deposit i.e. $46904 annually…

Q: how much annuity can a person get annually from a bank every year for 8 years starting 1 year after…

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Question

$600 is deposited in a savings bank that pays 5±70 compounded quarterly.
1. How much will the account contain after 9 years and 3 months?
2. How much interest will be earned?

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 Facts given in the question and Formula:

VIEW

Step 2 Amount after 9 years and 3 months in the account:

VIEW

Step 3 Interest earned after 9 years and 3 months

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

Learn more about

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

Similar questions

You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more than $8000 if a. The account pays 5 percent actual interest every half-year and is com- pounded every half-year? b. The account pays 5 percent nominal interest, compounded semiannually?
You deposit $650 in a savings account. How long does it take an account with an annual interest rate of 5% to earn $178.25 in interest? Round your answer to the nearest tenth.
Suppose you deposit $1,500.00 into and account 7.00 years from today into an account that earns 14.00%. How much will the account be worth 14.00 years from today?
The Bank pays $1,200 in a bank deposit after a period of 12 years at an annual interest rate of 6.5% How much should you deposit in your bank account now Future Value ? Discount Rate/Period ? No. of Periods ? Present Value ?
how much should you deposit in a bank paying 2% compounded quarterly to accumulate an amount of 80,000 in 5 years and 9 months ?
If you deposit OMR 12500 in your account in a bank. Suppose the bank pays 8.25% compound interest monthly. Calculate future value of your money in 17 years.