Sarah won $10,000 at a bingo game. She deposits her $9,500 winning into a money market fund so that she can use the money next year to pay her tuition. This is an example of money serving as a (an): unit of account. medium of exchange. store of value. investment good.
Q: need
A: AS the deposits are made at the end of the year. This is an ordinary annuity problem. Formula to…
Q: Ted owns a car worth $40,000. Owns home worth $275,000, Checking acct with $800, Saving Acct with…
A: Compute the net worth:The net worth is $341,100.Excel spread sheet:
Q: Laura’s grandparents helped her purchase a small self-serve laundry business to make extra money…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: established a trust fund for you in a bank. The account has been earning an annual interest of 11%.…
A:
Q: Patricia McDonald has determined the following information about her own financial situation. Her…
A: The total value of assets includes all the possessions of an individual or an organization that are…
Q: Jacob's friend, Devan, wants to go to business school. While his father will share some of the…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Suppose that David's only assets are an automobile worth $10,000 and a checking account with a…
A: The computations as follows:
Q: Wendy has $23,000.00 invested in a bank that pays 9.75% annually. How long will it take for her…
A: INTEREST RATE 9.75% PRESENT VALUE $ 23,000.00 FUTURE VALUE (23000*3) $…
Q: Bart is a college student who has never invested his funds. He has saved $540 and has decided to…
A: An initial investment accumulates interest. The future value is the accumulated value of the initial…
Q: Jing, a recent engineering graduate, never took engineering economics. When she graduated, she was…
A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…
Q: Cynthia found various ways to make use of her money to generate income. The following summarizes all…
A: A business or an individual may earn additional income by investing the money in instruments, or…
Q: On Chris’ 4th birthday, his great aunt gives him $120,000. His parents place the money in an…
A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: Kayla Gordan plans to borrow $300,000 from ANZ bank to set up a Nail Salon.She currently has $10,000…
A: Given information, Plan to borrow from bank = $300,000 Savings = $10,000 Security for loan = house…
Q: Jeanette also received $5,000 from the rich uncle. She put the money into a savings account at 2%…
A: Given: Amount received now=$5,000 (Present value) Interest rate=2% To find: How long it will take to…
Q: Lara Beal allocates wealth between two periods: youth and old age. Currently (in her youth) she has…
A: Given, Lara Beal has $8,000 in cash Lara Beal only investment opportunity other than the bank is a…
Q: Cynthia found various ways to make use of her money to generate income. The following summarizes all…
A: Interest income is the income which is earned on the bank deposits or the borrowings. Given in the…
Q: Parvati wants to donate enough money to Camosun College to fund an ongoing annual bursary of $1,000…
A: We need to find present value of future donation by using this equation Present value =FV(1+i)n…
Q: Nicole invested her savings in two investment funds. The amount she invested in Fund A was $5000…
A: Let the investment in Fund B be Y Hence, the investment in Fund A = Y - $5,000 Compute Y with the…
Q: Calculate the equity each of these people has in his or her home: a. Fred just bought a house for…
A: a) Equity implies the house's market value, less what we own the bank.
Q: Ted owns a Lexus worth $49,800. He owns a home worth $297,000. He has a checking account with $880…
A: Solution- Given- Lexus worth=$49,800 Home worth=$2,97,000 Account=$880 Saving account=$1,880 Mutual…
Q: Ted owns a Lexus worth $41,600. He owns a home worth $292,000. He has a checking account with $870…
A: Non- current assets (NCA) - Assets which are not expected to be sold within 1 year and whose…
Q: How much should she invest at the end of every year in an investment fund that earns 9% annually to…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Ira Schwab wins the lottery and decides to take the one lump sum of$500,000 minus taxes. Ira…
A: The calculation is: Rule 72 tells how much time an investment will take to make the amount double.
Q: Ted Riley owns a vehicle worth $38,000 and a home worth $340,000. He has a checking account balance…
A:
Q: A young woman, 22 years old has just graduated from college. She accepts a good job and desires to…
A: Let n = Years for which deposits are made Deposit (D) = P 2000 r = 15%
Q: 0,000 now for the college education of his 2 year old son. If the fund earns 14% effective, how much…
A: The given problem can be solved using PMT and FV function in excel. FV function computes amount…
Q: At the beginning of each of the last three years, Lucas put $7,000 from his earnings as a waiter…
A: Amount interest earned = New balance *interest rate New balance = Beginning balance + amount…
Q: John won the lottery on Monday and can take either $50,000 per year for 20 years, or $500,000 today.…
A: Present Value is the current value of the cash flow that can be occurred in future. To find the…
Q: Cynthia found various ways to make use of her money to generate income. The following summarizes all…
A: Interest income on a saving bank account is not to be considered. all other interest is to be taken.
Q: 3. Brittney won $765,000 in a lawsuit against MIT over theft of intellectual property. She and…
A: Future Value = Present Value * [ 1 + Periodic Interest rate ]Number of periods Periodic Rate =…
Q: A. Choose the letter of the correct answer and write it on the space provided. 1. To save for her…
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Two sisters, Joan and Jocelyn decided to save money in funds that earns 14% compounded annually but…
A: Time value It tells that value received today has more value than that of receiving the same value…
Q: local businessman has set up a school fund that will last forever that can earn 3.1% annually. How…
A: The given problem deals with the concept of perpetuity. A perpetuity is a series of uniform cash…
Q: Consider the case of Lola Clara. When she was 24 years old, her Papa gave her PHP50,000. She was…
A: Investments are part gaining income through share market or mutual funds. After all risks are…
Q: Stephanie inherited $40,000. She wants to put some of the money in a certificate of deposit that…
A: Assumption: It is assumed that the amount deposited in the certificate of deposit is ‘a’.
Q: Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest. You must…
A: The formula for Present value of annual withdrawal is = Present value given annuity factor (…
Q: You are given $50,000 to invest (not pay bills). How do you invest the money? Explain why this is a…
A: I will invest this amount of $50,000 keeping in mind my financial position and situation, my…
Q: Janice has $5,000 invested in a bank that pays 2.8% annually. How long will it take for her funds to…
A: The time period or the number of years (NPER) refers to the time it would require for the investment…
Q: I. Pielago is in need of funds for the next 3 months. She badly needed P30,000,000 in cash because…
A: Money Market Fund Money market fund is also called short term financial fund which can be generate…
Q: Elena wanted to invest in a trust fund. She borrows from a credit cooperative that charges 8% simple…
A: First, we need to compute the interest for 2 years @ 8% i.e. 16% and this interest will be deducted…
Q: Jon was born on March 1, 1983. On the day he was born, Jon's grandfather made an investment of…
A: Interest is an extra amount which is received on deposited value for the period. It increase the…
Q: A man needs to set up a 529 colleges saving account for his granddaughter. How much will he need to…
A: using the PMT function in excel
Q: 1. Sandy collects OAS and CPP. In addition, she is about to transfer her RRSP to a RRIF so she can…
A: Retirement planning is a crucial financial decision to lead a smooth life post-retirement. Money…
Q: nvested the profit of her business in an investment fund that was earning 2.25% compounded monthly.…
A: In this we need to find out the present value of all options.
Q: Ana takes P10,000 out of her checking account and puts it in his savings account while Biff…
A: The right answer is rises by P`10,000;is unchanged.
Q: 1) millet wants to provide a ₱200,000 graduation gift for her daughter mae who is now 16 years old.…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A first-year engineering student wants to have $30,000 at graduation 4 years from now to buy a new…
A: Given: Future value (FV) = 30,000 Present value (P) = 10,000 Interest rate = 12%
Q: A high school student received from his wealthy ant $15,000. He decided to put it in an account…
A: Here, Amount Received today (PV) is $15,000 Amount Required (FV) is $25,000 Interest Rate (r) is…
3.
Sarah won $10,000 at a bingo game. She deposits her $9,500 winning into a
market fund so that she can use the money next year to pay her tuition. This is an example of money serving as a (an):
- unit of account.
- medium of exchange.
- store of value.
- investment good.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Q2. Your grandmother deposited $10,000 in an investment account on the day you were born to help pay the tuition when you go to college. If the account was worth $50,000 seventeen years after she made the deposit, what was the rate of return on the account?Formulate a system of equations for the situation below and solve.Michael Perez deposited a total of $2000 with two savings institutions. Bank A pays interest at the rate of 6%/year, whereas Bank B pays interest at the rate of 8%/year. If Michael earned a total of $128 in interest during a single year, how much did he deposit in each institution? Bank A $___ Bank B $___Stefanie takes out a five year car loan and agrees to pay $500 every month. This scenario shows how money functions as a OA. store of value. B. standard of deferred payment. O c. unit of accounting. D. medium of exchange. A
- You are given $50,000 to invest (not pay bills). How do you invest the money? Explain why this is a good investment(s) and how it would benefit one's financial goals.4. Lily starts her own bank, called BOL. As owner, Lily puts in $100 of her own money. BOL then borrows $300 in a long-term loan from Lily's roommate, accepts $850 in demand deposits from her neighbors, buys $400 of corporate bonds, lends $600 to local businesses to finance new investments, and keeps the remainder of the bank's assets as reserves at the Fed. a. Fill in blanks in the balanced sheet of BOL: Assets Reserves $ Loans $ Securities $ Total $ Liabilities and Owners' equity Deposits $ Debt $ Capital (Owners' equity) $ Total $ b. Calculate BOL's leverage ratio. Interpret the ratio. c. Suppose the bank's asset value increases by 8%, calculate for the percentage increase in the capital value. d. Suppose the bank's asset value decreases by 8%, calculate for the percentage decrease in the capital value.SITUATION 3: Vanessa wants to be a 'wise' money saver. She has 20,000 Php and is willing to put it in the bank. She found two banks that accepts saving based on a simple interest. One bank offers 15% simple interest and another offers 10% simple interest, and she invested in both banks. After a year, she withdraws all interest and capital and finds out she has 22,650 Php. 11. How much money did she put on the bank that has the 10% interest? b. 7000 A a. 6000 c. 8000 d. 3000 12. How much money did she put on the other bank? a. 17000 c. 14000 b. 12000 d. 13000 13. If she plans on getting a total of 30,000 Php, how much money shall she add to her original capital if the bank that charges 15% interest can only take a maximum of 20,000 Php investment? a, 7474.74 c. 6363.64 b. 9696.97 d. 8567.13
- d) QBank makes a personal loan of £10,000 to Mr A, and credits his current account with the amount of the loan. Describe the initial impact on QBank’s balance sheet, the money supply, and the net worth of both QBank and Mr A. e) Mr A then withdraws £10,000 in cash with which he pays Ms B for building work. She immediately deposits it in her current account with another bank, RBank. What is the impact on QBank’s balance sheet, and on the aggregate money supply? f) Financial media report that QBank has made “significant” capital losses on some of its financial investments, as well as suffering high default rates on its loans to households. Discuss the possible consequences, using the information in your earlier answers.Hadiya Benzema is reviewing her assets and liabilities. What is her net worth? Assets: Cash in checking account, $1,000 Cash in savings account, $2,800 Current value of investments in U.S. savings bonds, $4,000 Current value of investments in stocks & mutual funds, $9,700 Current cash value of life insurance, $7,300 Current value accrued pension benefit, $25,000 Current value of house, $155,000 Current value of furniture and appliances, $8,000 Current value of jewelry, $600 Current value of automobile, $7,200 Liabilities: Current unpaid bills, $800 Home mortgage unpaid balance, $100,000 Auto loan unpaid balance, $3,200 Property Taxes owed, $1,000 Home improvement loan balance, $1,200Sandra is buying a house for $80,000. The bank requires 3 point. Calculate the cost of the points. The cost of the points is
- 1. What is the total balance in the account after 40 years? 2. How much of the total did Pamela contribute herself? 3. How much money did Pamela make through compounded return in this investment account?Cynthia found various ways to make use of her money to generate income. The following summarizes all the income she was able to derive from her use of money: • Interest income from loans granted to online sellers who did not have enough capital on their own - P25,000 • Interest income on a 90-day time deposit with BPI. The amount of deposit is P500,000 which pays 7% interest per annum. The interest was already credited to her account. • Interest income on her savings account maintained in her cooperative - P5,000 • Interest income on promissory notes of clients – P7,000 How much interest income is subject to final tax? a. P40,750 b. P15,750 c. P13,750 d. P8,750Cynthia found various ways to make use of her money to generate income. The following summarizes all the income she was able to derive from her use of money: • Interest income from loans granted to online sellers who did not have enough capital on their own - P25,000 • Interest income on a 90-day time deposit with BPI. The amount of deposit is P500,000 which pays 7% interest per annum. The interest was already credited to her account. • Interest income on her savings account maintained in her cooperative - P5,000 • Interest income on promissory notes of clients – P7,000 How much interest income is subject to final tax? а. Р40,750 b. P15,750 с. Р13,750 d. P8,750