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- Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years.a.) At 3% compounded monthly, how much will you have accumulated at the end of 5 years?b.) How much difference would it make if the payments were made at the beginning of the monthrather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63 please show clear solution, the answer has already been given. (although if its wrong please write the answer and solution anyway)If you deposit $150 in an account with an APR of 6% and continuous compounding, the balance after 2 years is O a. $150 x e0.12 O b. $250 x (1 + 0.06)² O c. $250 xe0.12 Od. $150 x e2What will a deposit of $5500 at 7.8% compounded monthly be worth if left in the bank for 5 years? Use the TMV calculator to fill in the table. N 60 I% 7.8 PV PMT 0 FV P/Y C/Y
- 6. Computing Future Value of Annual Deposits. What amount would you have if you L deposited $2,500 a year for 30 years at 8 percent (compounded annually)? (Use time value of money calculations in Chapter 1 Appendix.) e here to search 17 to 4M to 144 16 40 73 14 I01 12 米 E T 00 86 R 4. 24 3.Q2. Deposits are to be made to an account as indicated in the table below which bears interest at the rate of 10% compounded annually. How much will there be in the account at the end of the sixth year? END OF YEAR DEPOSIT 1 2 500 3 1000 4 1500 2000 Answer: F6 = 6,078.05Php %3D4. The interest rate on a savingsaccount is 3% . You deposit£100 today, then £100 at theend of the first year, and £100each year until the end of year10. You withdraw x at the end ofyear 11, and then x each yearuntil the end of year 15 when thefinal withdrawal is made. Whatvalue of x will empty the accountafter the final withdrawal? A: 250B: 260 C: 270 D: 280
- If you deposit $P into a savings account that earns interest at a rate of i% per month for n years, the future worth in year n is represented by all of the following equations, except: (a) F = $P(F∕P, effective i/month, 12n) (b) F = $P(F∕P, effective i/quarter, 3n) (c) F = $P(F∕P, effective i/6-month, 2n) (d) F = $P(F∕P, effective i/year, n)PV = FV * 1 / (1+i)^n FV = PV * (1+i)^n If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate of 9%?When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 O C. $586 OD. $622 I
- Exercise (1.77) You deposit an amount X into an account at time 0 and 2X into the same account at time 3. The account balance at time 5 is 5,000. If the account has earned a 4% annual effective rate, what is the value of X? Answer: 1,479.35You 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.H3. A loan of $18430 is to be repaid at 4% effective by payments of $1500 at the end of each year for as long as possible and an additional smaller payment X made one year after the last full payment. Calculate X. A 367.68 B 369.17 C 358.25 D 353.54 E 376.99 Please show proper step by step calculation