se starting this year you decide to make deposits of $5,000 at the end of each year for the next five years in a bank account paying 10% interest.  If you currently have $3,000 in the account how much will you have at the end of five years?   1. $25,255.05   2. $36,742.22   3. $35,357.03   4. $30,272.35   5. $28,500.60

Q: You have just received a bonus of $10,000 and are looking to deposit the money in a bank account for…

A: Value after a period can be calculated as: = Principal * (1 + Periodic Interest rate)^number of…

Q: What rate of interest will you have to get per year if you would like to buy a car for $68,500 at…

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Q: 3. Time Value of Money Assume that ten years from now, you will need $10,000 and that your bank…

A: The concept of the time value of money states that money today has more value than the same amount…

Q: Suppose you receive $500 in graduation money. You decide to put it into an account paying 5%. If you…

A: FV= [C*{(1+r)^n-1]/r] + [P*(1+r)^n] Where P= Initial deposit = $500 C= Periodic payments = $170 r=…

Q: Suppose you want to have $2,000,000 in 45 years. Calculate how much you need to deposit per nonth in…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: If you want to have $60.000 in 8 years, how much do you need to deposit in the bank today if the…

A: Deposit required today = FV/(1+r)n Where FV - Future value = $60,000 r - Interest rate = 9% n -…

Q: What equal sums of money should you invest in a bank at the end of the year for the next 20 years in…

A: Future Value = $200,000 Time Period = 20 Years Interest Rate = 24% per year compounded monthly.

Q: 5. You deposit PHPI,500 in your bank account. If the bank pays 4% simple interest, how much interest…

A: Simple Interest = P * R *T Where P = Principal = PHP1,500R = Rate of Interest = 4%T = Time = 10…

Q: 5. You have just invested $3,000 into an account that will earn a 9% annual interest rate. You want…

A: Present Value = pv = $3000Interest Rate = r = 9%Future Value = fv = $8000Total Time = tt = 5…

Q: You want to have $100,000 in your savings account 3 years from now, and you're prepared to make…

A:

Q: You want to lend $500 as a bank deposit in a private bank with an interest rate 9% per month. You…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: An investment promises to pay into an account that pays you 6 percent  annually, $150 per month for…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Find how much money needs to be deposited now into an account to obtain $40,000 in 5 years if the…

A: Future value (FV) = $40,000 Period (n) = 5 Years Interest rate (r) = 7%

Q: your bank will pay you an interest rate of .142 percent per week. You want to have $26, 500 in 9…

A: Present value (PV) is a financial concept crucial for evaluating the current worth of future cash…

Q: suppose you have 100 dollars in a saving account and the bank adds 10 percent per year to the…

A: As per Time Value of money, Future value = Present value * (1+rate)^n

Q: You just deposited $15,000 in a bank account that pays a 4.0% nominal interest rate, compounded…

A: The future value can be calculated using the following formula

Q: nd inter

A: Note : As per our guidelines, we can only solve one question at once. Since, you haven't mentioned…

Q: You are planning to invest $5,000 in an account earning 11% per year for retirement. a. If you put…

A: The value at retirement is calculated using following equation as future value Future value =…

Q: None

A: Problem SummaryYou currently have $4,500 in the bank.You plan to deposit $100 at the end of each…

Q: 2. If you deposit $2500 two years from now in a bank account that pays 4% compounded annually, how…

A: The amount that is deposited today will be more in dollar terms at certain future date due to the…

Q: Baghiben

A: The objective of this question is to calculate the future value of an annuity due. An annuity due is…

Q: You want to have $51,000 in your savings account 9 years from now, and you're prepared to make equal…

A: Payment per period is the regular payments made or received of an investment, while future value is…

Q: 2. You are running a bank. A customer agrees to pay you with annual interest rate of 10% for 5…

A: We need to use loan amortization formula to calculate amount of loan Loan amount(P)=PMT1-1(1+i)ni…

Q: a) If you deposit $10 000 today in a bank statement paying 10.38%, how much will you…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: Cash Flow Diagram 1. You are 40 years old and have accumulated $50,000 in your savings account. You…

A:

Q: You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The…

A: present value in savings account = $100 interest rate annually = 2% future value = $120 time period…

Q: If you make monthly deposits of $2,960 into your savings account for the next 25 years, what return…

A: Compound = Monthly = 12Payment = p = $2960Time = t = 25 * 12 = 300Future Value = fv =…

Q: 27. You hope to accumulate an account balance of $20,000 in 4 years by making a single deposit…

A: We need to calculate the amount to be deposited today - present value (PV)Future Value (FV) =…

Q: You currently have $10,000 in your bank account. You will invest this $10,000 and $750 every quarter…

A: For calculation of annual rate of return we need to calculate rate per quarter first. The future…

Q: You have $75,000 in the bank right now. What equal annual amount (beginning one year from today) can…

A: Present value = pv = $75,000 Time = t = 13 years Interest rate = r = 8% Future value = fv = $50,000…

Q: You want to be able to withdraw $45,000 from your account each year for 20 years after you retire.…

A: Yearly deposit refers to an amount that is being deposited each year and earning a specified rate of…

Q: You are planning to save to purchase a car in 23 years for $28,000. You have opened a bank account…

A: Annuity is a series of equal payments made for some particular period of time . When payment is made…

Q: (Comprehensive problem) You would like to have $54,000 in 16 years. To accumulate this amount, you…

A: Future value = $54,000Period = 16 yearsInterest rate = 6% per annum

Q: You would like to save a million dollars by depositing $25,000 at the end of year into an account…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.