Problem B: RS Bank pays interest at the rate of 7.6% annually compounded quarterly. How much money will Aerol have in the bank at the end of 4 years if he deposits P3,500 at the end of each quarter? Round off your final answer up to 2 decimal places. Problem C: Find the present value of annuity of P 4,500 at the end of each month for 6 years at 9.89% compounded monthly. Round off your final answer up to 2 decimal places.

Problem B: RS Bank pays interest at the rate of 7.6% annually compounded quarterly. How much money will Aerol have in the bank at the end of 4 years if he deposits P3,500 at the end of each quarter? Round off your final answer up to 2 decimal places. Problem C: Find the present value of annuity of P 4,500 at the end of each month for 6 years at 9.89% compounded monthly. Round off your final answer up to 2 decimal places.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

See similar textbooks

Similar questions

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.
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.
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
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?
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?
Calculating 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?
If you deposit $100 in a savings account at the end of each month for 2 years, the balance will be a function f (r) of the interest rate, r%. At 7% interest (compounded monthly), f (7) = 2568.10 and f (7) = 25.06. Approximately how much additional money would you earn if the bank paid 7 1/2 % interest?
1. At the beginning of each quarter, P36,000 is deposited into savings account that pays 6% compounded semiannually. Find the balance in the account at the end of three years. 2. ABC bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at the end of 5 years if he deposits P3,000 every month? 3. What is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2 yea if money is worth 8% compounded semiannually?
Suppose that your bank pays 6% interest, compounded quarterly. Use Table 12-2 to find how much should be deposited now to yield an annuity payment of $1,500 at the end of each three months, for 3 years. (Round your answer to the nearest cent.) $
Suppose that your bank pays 6% interest, compounded quarterly. Find out how much should be deposited now to yield an annuity payment of 1,500 at the end of each three months, for 3 years. (Round your answer to the nearest cent)
Your bank pays 8% interest, compounded annually. Use the appropriate formula to find how much you should deposit now to yield an annuity payment of $700 at the END of each year, for 8 years. A.$4,022.65 B.$4,344.46 C.$4,372.82 D.$6,195.96
Ordinary Annuity: 1. Tim deposits P750 every end of 3 months in an account paying 5% interest compounded quarterly. What amount is in the account at the end of 4 years and 6 months? 2. Find the amount and the present value of an annulty of P550 payable every three months for 7 years and 3 months, if money is worth 5%, compounded quarterly. 3. Find the cash value of a washing machine that can be bought for P1, 500 downpayment, and P650 a month for 18 months, if money is worth 6% compounded monthly?