If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of 6%/year compounded monthly, how much will he have on deposit in his savings account at the end of 5yr, assuming he makes no withdrawals during that period? (Round your answer to the nearest cent.)$Need Help? Master It

Time value of money :— According to this concept, value of of money in present day is greater than…

Answered: If Jackson deposits $120 at the end of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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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?
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.
Find each future value of single deposit by using the future value of a single deposit formula. 8. John opens a passbook savings account with $100. It pays 3.5% interest compounded quarterly. What will be the balance after one year?
You plan to deposit S500 in a bank account now and S400 at the end of the year. If the account earns 4% interest per year, what will the balance be in theaccount right after you make the second deposit?
Suppose you currently have $4,800 in your savings account, and your bank pays interest at a rate of 0.47% per month. If you make no further deposits or withdrawals, how much will you have in the account in 6 years? In 6 years' time, you will have $________ in the account.
< A friend asks to borrow $51 from you and in return will pay you $54 in one year. If your bank is offering a 6.2% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $51 instead? b. How much money could you borrow today if you pay the bank $54 in one year? c. Should you loan the money to your friend or deposit it in the bank?
Stan only has 14 years until he retires. He is going to deposit money into an account with 3.4% interest, compounded monthly. Question Question For each question round your final answer to the nearest cent. Assume the interest rate stays the same while the account is open. Also, assume Stan does not have any other money in this account. Question 3 Question 4 Question 5 How much will be in the account if he deposits the same $50.00 each month? Question 6 Question 7 Question 8 Question 9 How much will be in the account if he deposits $100.00 each month? Question 10 Question 11 Question 12 How much will be in the account if he deposits $150.00 each month? Summary How does doubling or tripling his payment impact his ending account balance? O It earns much more than double or triple the ending account balance. O It earns somewhat less than double or triple the ending account balance. O It doubles or triples the ending account balance, respectively. P Type here to search DIL Home 19 PrtScn…
you deposit OMR 8141 in your account in a bank. Suppose the bank pays 8% compound interest half yearly. Calculate future value of your money If in 5 years. Select one: O a. 11961.57 O b. All the given choices are not correct O c. 12050.63 O d. 9904.75 O e. 17575.60
A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is offering an 6.5% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $47 instead? b. How much money could you borrow today if you pay the bank $50 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $47 instead? If you deposit the money in the bank today you will have $____ in one year. (Round to the nearest cent.)
K You plan to deposit $700 in a bank account now and $100 at the end of the year. If the account earns 7% interest per year, what will be the balance in the account right after you make the second deposit? ... The balance in the account right after you make the second deposit will be $ (Round to the nearest dollar.)
You have decided to start a savings plan for your retirement. You plan to make an annual deposit of $50,000 each year for the next 6 years. The first deposit to be made one year from today. The bank pays a nominal interest rate of 5% annually. How much your savings account with the bank be if you leave the money in the bank to be withdrawn all in 19 years from today? Round to the nearest $0.01. DO NOT use the $sign. Do not use commas to separate thousands. For example if you obtain $1,433.728 then enter 1433.73; if you obtain $432 then enter 432.00 Your Answer: Answer
You deposit $296 today into a bank account that earns 12% annually. How much will be in your account after 25 years? note: show your answer to the nearest dollar (round to nearest dollar).

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