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How much would you have in savings if you kept $200 on deposit for eight years at 8%, compounded quarterly?
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- 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 annuityCalculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?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?
- Suppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 forfour years, how much will you have?If you deposit $250 into an account that earns 4.8% interest compounded monthly, How much will you have in the account 30 years from now ? What is the interest earned on the account ?How much money would you have in savings if you kept $200 on deposit for eight years at 8%, compounded semiannually?
- What is your annual rate of return if you deposit $2,700 today and withdraw $3,500 in a lump sum in 8 years?How much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank pays 5 percent per year.How much must you deposit into an account today so that you can have $20,000 in twelve years? Assume that the account earns 6% per year compounded quarterly. You should deposit $
- If you deposit $3,500 monthly into a savings account which earns 4.25% interest rate compounded annually, how much will you have after 7 years of saving?You deposit $100 in a savings account today, and this account accrues interest compounded annually at 4%. What will the balance be exactly 20 years from today?You deposit $3375 today in a savings account that pays 6.25% interest, compounded annually. How much will your account be worth at the end of 24 years?