If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account offering a stated annual rate of interest r = 0%, find the balance in the account 12 years from today (at the end of year 12).

If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account offering a stated annual rate of interest r = 0%, find the balance in the account 12 years from today (at the end of year 12).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 36P

See similar textbooks

Related questions

Q: Suppose that you made equal annual deposits starting from now followed by another at the end of…

A: Assuming Annual Deposit = 1000 Interest Rate = 8% Compounded Annually Deposits: Year Deposit 0…

Q: Suppose a certain manufacturer deposits 3000 at the beginning of each 3 month period for 8 years in…

A: Deposit at the beginning of 3 months = 3000 Year = 8 Terms(n) = 8*3 = 24 Interest Rate(r) =8% per…

Q: Deposits are made at the end of years 1 through 7 into an account paying 6% per year interest. The…

A: Future value is the worth of any asset or any sum of money at a future date when such asset or…

Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: Number of deposits = 10 Number of withdrawals = 5 First Withdrawal = 3000 First withdrawal at end of…

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals when a first…

A: The flow of payments which are made at regular interval of time are termed as annuity when amount is…

Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4% Semi annual deposit (P) = $ 900…

Q: A sinking fund is established to discharge a debt of $60,000 in 15 years. If deposits are made at…

A: using financial calculator, N =15*2 =30 I/Y = 4/2 =2 PV = 0 FV = -60000

Q: 15. At the beginning of each of 7 years $500 was deposited on the account. At the end of each year…

A: Hence, the PMTs of $500 will be valued at $4,629.9013 at 7 years.

Q: Your bank pays 4% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Compounding interest semiannually indicates that the principle of a loan or investment includes the…

Q: A given account accrues two kinds of deposits for a period of 7 years. One is a leveled deposit of…

A: Deposit account is a financial service offered by banks and other financial institutions to their…

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals? A…

A: a) Working note:

Q: How much money would be accumulated in15years for a deposit of $15,000 made at the end-ofyear zero…

A: The formula used as follows:

Q: If a deposit of $100 is made on the first day of each month into an account that pays 6% interest…

A: The compounding method is used to determine the future value of cash that is deposited today. Given;…

Q: final amount of money in the account if $1200 is deposited at

A: Compounding quarterly can be considered as the interest amount which is earned quarterly on an…

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: Assuming that four annual deposits of ($1000) are occurred but the first payment deposit at end of…

A: The annual payments are going to occur will be equivalent to the future value of annual payment that…

Q: A sinking fund is established to discharge a debt of $60,000 in 5 years. If deposits are made at the…

A: Sinking fund is an accumulated fund to pay-off the future debts or expenses. Firm deposit an annual…

Q: SR 3,479 was deposited in a savings account that pays 10 percent interest compounded annually. How…

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

Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: Value of with drawls at end of 10 years can be calculated by following function in excel…

Q: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: what is the balance in an account at the end of 10 years if 5,000 is deposited today at the account…

A: The following formula is to be used in order to find out the balance in account A =P[1+r/n]nt…

Q: how, secol deposit ears. During the first 10 years, the account earns interest quoted at 10 years…

A: In this future value of investment is to be calcualted.

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: Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: What is the accumulated value of periodic deposits of $40 at the beginning of every month for 17…

A: This is the case of an annuity due. An annuity due is that annuity where the cash flows occur at the…

Q: A deposit of $800 is planned for the end of each year into an account paying 8 percent/year…

A: We need to use future value of ordinary annuity to solve this problem Future value of…

Q: What is the amount of five equal annual deposits that can provide five annual withdrawals, where a…

A: First withdrawal of $1500 is made at the end of year six and subsequent withdrawals increase at $100…

Q: On each December 31, you plan to transfer $2,000 from your checking account into an…

A: Future value: It refers to the sum of money that will be received by the investor in the future by…

Q: Jaffa invested $700 into an RRSP that earned interest at 7.5% compounded quarterly for three years.…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: What is the amount of 10 equal annual deposits that can provide five annualwithdrawals, where a…

A: The future value of annuity is given by:=C×1+in-1iWhere, C=Cash flow per periodi=Intertest…

Q: What amount must be deposited at the bank today to grow to $600 in 4 years, assuming 10% interest…

A: Amount means the sum to be received after few year with interest. Principal means the sum to be…

Q: Do in excel What uniform annual amount should be deposited each year in order to accumulate…

A: solution future value $2,143.60 Number of period 8 present value 0 annual interest rate…

Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Future Value of Annuity Due refers to the concept which dictates the compounded value of a sum of…

Q: A sinking fund is established to discharge a debt of $80,000 in 5 years. If deposits are made at the…

A: The following formula will be used:

Q: If you make quarterly deposits for 3 years into an account that compounds interest at 1% per…

A: The formula of future value of an annuity: FV =A × (1+r)n-1r where A = Annuity amount FV =…

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: Use the compound interest formula to compute the balance in the following account after the stated…

A: Compound interest is the interest you earn on interest.formula fro compound interest is=A(1+r)twhere…

Q: A P5,000 savings account earning 8% effective interest was opened five years ago. If another savings…

A: In this we have to find out the future values of both options and equate both.

Q: Deposits are made at the end of years 1 through 7 into an account paying 5% per year interest. The…

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

Q: What amount must be deposited today, if, starting one year from today, you wish to make 15 equal…

A: Given, annual withdrawals $3,450. Number of payments 15. Interest rate is 0%.

Q: What deposit made at the beginning of each month will accumulate to $120,000 at 8% compounded…

A: An annuity is the fixed payment that an investor receives from an investment or fixed deposits made…

Q: Use the appropriate formula to find the future value (in $) of $700 deposited at the beginning of…

A: Future Value or Compounded Value is worth of either one single amount at any future date or a series…

Q: 2. If $100 is deposited in a bank at the beginning of each month for 10 years, what is the…

A: Computation:

Q: What is the amount of ten equal annual deposits that can provide five annualwithdrawals, where the…

A: Present value of the amount that is expected to be receiving in some future date is the current…

Q: For ethe case shown in the following table, determine the amount of the equal, end of year deposits…

A: Future value (FV) = $ 130,00 Period (n) = 30 Annual interest (r) = 13%

Question

If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account offering a stated annual rate of interest r = 0%, find the balance in the account 12 years from today (at the end of year 12).

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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?
What amount must be deposited today, if, starting one year from today, you wish to make 15 equal annual withdrawals of $3,450 from an account offering an annual stated rate of interest r = 0%?
Suppose that you deposited $1,000 in a savings account at the beginning of a year where the annual interest rate is 18%, for each month the annual effective rate is: Select one: a. $1195,61 b. $11561.5 c. %19.561 d. $19561.5
Suppose $1,000 is deposited in a bank account today (time 0), followed by $1,000 deposits in years 2, 4, 6, and 8. At 6% annual interest, how much will the future equivalent be at the end of year 12?
If a deposit of $100 is made on the first day of each month into an account that pays 6% interest per year compounded monthly, determine the amount in the account after 18 years.
You decide to deposit $103 monthly in a 2.98% annual interest bearing account over the next 8 years. What is the gross amount actually placed in the account?
Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of every six months, for 17 years if a bank pays 8% interest, compounded semiannually. (Round your answers to the nearest cent.)
Suppose an account pays 12% simple annual interest, and $6,316 is deposited into the account. If the interest is paid annually and no money is withdrawn from the account since the initial deposit, find the balance in the account after 5 years. Round answer to two digits after the decimal point.
If $1,500 is deposited in a savings account at the beginning of each year for 20 years (a total number of deposits= 20) and the account draws interest at 8% compounded annually, the value of the account at the end of 20 years will be nearly:(a) $71,400(b)$74,936(c) $74,996(d)$74,144
Suppose you make quarterly deposits of $1,500.00 into an account that pays an interest at a rate of 6% compounded monthly. Find the balance of the account at the end of year 2.
$480 is deposited at the beginning of every 6 months into a savings account. This will continue for 9 years at which point the balance in the account will be $11,894.90. If the interest on the account is compounded quarterly, what nominal rate is this account earning? Round to 2 decimal places
What is the amount of five equal annual deposits that can provide five annual withdrawals, where a first withdrawal of $1500 is made at the end of year six and subsequent withdrawals increase at $100 over the previous year's, in the interest rate of 10% compounded annually? Enter you answer as follow: "123456.78". Do not use "$", or ",".