Suppose I have the choice of investing $25000 in two different accounts:   Acct 1:  4.5% compounded semi-annually Acct 2:  3.75% compounded monthly   What is the future value of each account?  In other words, what will be the final compounded amount in each account after 6 years (assuming no additional deposits or withdrawals)?  How much interest does each account produce?

Q: How much should you invest into an account with 3.2% interest compounded quarterly if you want to…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: Suppose an individual makes an initial investment of $2500 in an account that earns 7.8%. compounded…

A: Given information: Initial investment is $2,500 Interest rate is 7.8% Number of periods is 12 made…

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: The future value of a present sum of money after n periods is given by the formula Future…

Q: Suppose a certain manufacturer deposits $3,000 at the beginning of each 3 month period for 8 years…

A: Gien Information, Deposit = $3,000 Interest Rate = 8% Compounding Frequency = quarterly    Formula…

Q: You deposit 54000 in an account that pays 6% interest compounded semiannually After 4 years the…

A: First, calculate value after 4 years:  Future Value (End of 4 years)=Deposit×1+Interest…

Q: What is the future value of $1,000 in five years at 8% interest paid semi annually ? Paid quarterly?…

A: Future value is an amount reccievable in future(after certain period)  by investing today. Formula…

Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…

A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…

Q: What is the future value of $1,200 placed in a saving account for four years if the account pays…

A: Investment = 1200 Quarterly Compounding Interest Rate = 6%/4 = 1.5% Time Period = 4 years × 4 = 16…

Q: How much will your investment be worth in 17 years at each bank?

A: Time value of money (TVM) means that the amount received in the present will have more value than…

Q: You want to be able to withdraw $5800 each year for 10 years. Your account earns 3% compound…

A: An annuity is the plan that gives a fixed amount in return for a lump sum. It is usually made with…

Q: Suppose you are depositing an amount today in an account that earns 5.25% interest, compounded…

A: The amount of deposit to be made today can be calculated using the Present Value Formula

Q: If you deposit $3,500 today into an account earnings an annual rate of return of 11 percent, what…

A: Deposit amount (P) = $ 3500 Interest rate (r) = 11% Period (t) = 35 Years

Q: You are planning to make annual deposits of $3,600 into a retirement account that pays 8 percent…

A: The company will invest in another company to earn profits from the investments. The company will…

Q: If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in…

A: Given, The amount invested today is $2000 The rate of interest is 7%

Q: IF you deposit $300 each quarter into an account earning 3.2% compunded quarterly, how many years…

A: Given that;Quarterly deposit amount (pmt) is $300Future value of the amount is $15,000Interest rate…

Q: If you deposit $5000 into an account, how many years will it take for the account to be worth $9350…

A: Future Value = Present Value * (1+Interest %)^Time Period Since Semi Annual Compounding, interest…

Q: You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more…

A: Interest is an additional amount which is earned on deposited amount for the period. It increases…

Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…

A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%

Q: You plan to deposit $1,500 per year for 4 years into a money market account with an annual return of…

A: Future value of annuity=C×1+in-1iC=Cash flow per periodi=Interest raten=Number of payments

Q: Find the accumulated value of an investment of $32,000 for 7 years at an interest rate of 4.2% if…

A: Value of investment = 32,000 Interest rate = 4.2% Time period = 7 years The value is compounded…

Q: account with an interest rate of 7.5% per year compounded monthly. You want to withdraw all your…

A: interest rate =7.5% monthly interest =7.5/12=0.625 Future value =Present value (1+i)n

Q: You are planning to make annual deposits of $5,970 into a retirement account that pays 10 percent…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…

A: Future Value = Present Value * (1+r)^n Where, n = no. of compounding period i.e. 3 years * 12 = 36 r…

Q: Assume you make a single deposit of $1000 into a savings account that pays interest at 0.5% per…

A: Monthly compound interest relates to the compounding of interest on a monthly basis, which indicates…

Q: How much would be in your savings account in seven years after depositing $290 today if the bank…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: You currently have $2,100 (present value) in an account that has an interest rate of 4% per year…

A: The concept of the time value of money states that money loses value over time pertaining to…

Q: You plan to make 15 annual deposits in a saving account that pays 6% interest compounded annually.…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: You are quoted an interest rate of 8% on an investment of $5 million. What is the value of your…

A: Interest Rate = 8% Investment = 5,000,000 Time Period = 6 years

Q: You put $1,000 into a savings account today that offers a 55% APR with semi-annual compounding…

A: GIVEN, PV = $1000 N = 2 M = 2 (SEMI ANNUAL) R=55%

Q: Suppose that a savings account attracts an interest rate of 1.6% per annum. How much would need to…

A: Present value means the current value of future money or cash flow given a specified rate of return.…

Q: You deposit $500 each month into an account earning 3% interest compounded monthly. Round to the…

A: We need to use future value of annuity formula to calculate money in account after 25 years Future…

Q: You have $41,000 in an account earning an interest rate of 4%. What are the equal beginning-of-month…

A: The present value of an annuity due formula uses the same formula as an ordinary annuity, except…

Q: what is the future value of an mortar $300 after 4 years if it has invested in an account paying an…

A: Here, Amount is $300 Time Period is 4 years

Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…

A: Future value is the expected value of annual deposit to be made at specified interest rate. Given:…

Q: suppose you are offered the following three accounts to invest $10,000 for 20 years: 18% simple…

A: Since only two accounts are offered rather than three accounts. So, the best choice among the two…

Q: You deposit $3500 in an account earning 2% interest compounded quarterly. How much will you have in…

A: Deposit amount (P) = $3500 Interest rate = 2% Quarterly interest rate (r) = 2%/4 = 0.50% Period = 18…

Q: You deposit $6000 into an account earning 8.8% annual interest, compounded quarterly.  How many…

A: Future Value(FV) worth of amount received today at some future date. FV is computed by compounding…

Q: You deposit $300 each quarter into an account earning 5.8% interest compounded quarterly. a) How…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: If you invest $2,589.70 in an account earning an annual interest rate of 2.539% compounded monthiy,…

A: In order to achieve a goal in future, an investment can be made at present date so that when the…

Q: You make an investment into a money market account at time T=0. In year T=5, the value of the money…

A: Given: Time period: 5 years Future value: $5000 Rate of interest: 5% compounded quarterly To…

Q: You deposit $200 each month into an account earning 8% interest compounded monthly. Round to the…

A: Answer b) Total amount put by us in account:   = Amount monthly invested * 12 * number of years =…

Q: You put \$1,000$1,000 into a savings account today that offers a 5\%5% APR with semi-annual…

A: Banks usually offer loans to customers, and they also accept deposits from the customers. The…

Q: Keira wants to invest $4,300 in an account with an interest rate of 7.2% that is compounded MONTHLY.…

A: Information provided: Term = 9 years Interest rate = 7.2% compounded monthly Principal = $4300…

Q: ffering MACY’S has a six-year term deposit that will pay 7% per annum compounded quarterly.  If…

A: EAR stands for effective annual rate. EAR is greater than APR (annual percentage rate) when the…

Q: Suppose that your bank pays 6% interest, compounded quarterly. Find out how much should be deposited…

A: Answer: Calculation of the amount that should be deposited now to yield an annuity payment of 1,500…

Q: Suppose that you are about to borrow $10,000 from a bank. Suppose you will be repaying using…

A: Bank charges interest rate when you borrow money and these are to be paid equal annual payment or…

Q: Suppose that you invest $20 000 in an account paying 8% interest. You plan to withdraw $2000 at the…

A: Investment = $ 20,000 Annual interest rate = 8% Annual withdrawal = $ 2000 Period = 15 Years