The first savings account Hector is opening is for emergencies only.  He has $1500 to invest now.  The savings account at Bestern Bank offers 7% interest, compounded monthly.  How much money can Hector expect to have in his account after 15 years?

Q: Stephen has $11,200 in the bank. The account will earn 2.8% in simple interest for the next 5 years.…

A: Simple interest is the method used to charge the interest on the principal amount for a given period…

Q: Your birthday is next week and instead of other presents, your parents promised to give you $2,400…

A: The concept of time value of money will be used here.As per the concept of time value of money any…

Q: Roger just deposited $12,000 into his account at Market Place Bank. The bank will pay 3.2 percent…

A: in this we have to find out simple interest and compounding interest and than find out interest on…

Q: Sean has $47,381 in his savings account today. The interest rate is 8.4% p.a. compounded monthly.…

A: Here,Amount in the account today is $47,381Interest Rate is 8.4%Time Period is 22 months

Q: joe decides to invest $610 dollers every month in an account that pays 1.87% monthly how nuch money…

A: Following information are given:   Monthly deposit = $610 Monthly rate = 1.87% No of months = 33…

Q: Jon plans to start a saving account. His plan is to deposit $69 each month into a money market…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Pete Leary wants to attend College. Seven years from today he will need $30,000. If Pete's bank pays…

A: Present value refers to the current amount of the future payment in a specified period of time. It…

Q: Hak Young has accumulated some credit card debt while he was in college. His total debt is now…

A: Interest refers to an expense that is paid by the borrower to the lender at every period charged on…

Q: Tom wants to go on a cruise for his Senior Trip. He needs $2000 for the trip. Tom is currently a…

A: The current value of a future financial asset or cash flow stream, given a predetermined rate of…

Q: A savings account at Firstest Bank offers 5.75% interest, compounded daily.  After a deposit of…

A: FV = P * (1 + r/n)^(nt)where:FV is the future value of the investmentP is the principal amount (the…

Q: Claudia intends to accumulate $35,000, so 6 months earlier she opens an account with $7,500, earning…

A: Simple interest = Principal * interest * time Amount = Principal + simple interest Amount =…

Q: Pascal has recently opened an RRSP. He plans to deposit $ 965 at the end of every month for 20…

A: Here,Monthly Deposit $         965.00Time Period in Years20Nominal Rate5.90%Compounding Period (Semi…

Q: Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with…

A: Effective interest rate is 7.9% Future Value is $11,000 Time period is 5 years or 60 months To Find:…

Q: Miles' uncle Aaron Davis (Jefferson's brother) is out on the prowl one night and sees an ad for…

A: Periodic Payment  $       80.00 Time Period 18 Interest Rate 4.50%

Q: Suppose that Jacob would like to invest at the end of each month for the next 15 years into an…

A: Ordinary Annuity refers to series of equalized payments that are made at end of period for certain…

Q: Whitney deposited $200,000 into a savings account that has an annual interest rate of 8% compunded…

A: Interest is an extra amount which is received or paid on deposited or borrowed amount for the…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Annuity means no. of finite payments which are the same in size and made in equal intervals. Person…

Q: Jim sets up a retirement annuity in which he deposits $200 per month. The annuity pays 3% compounded…

A: Future value: The value of the asset at some future date which is computed using the assumed rate of…

Q: Nick invested $2,000 in a bank savings account today and another $2000 a year from now. If the bank…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Future value is the value of the future cash flows being compounded at a predefined rate of interest…

Q: Bozo the clown decides to start saving money. So, every month he deposits $200 into an account which…

A: The future value refers to the value of the annuity or the cash flow at the future date. The future…

Q: Sabrina plans to save for next two years. She plans to put away $1000 every 6 months starting 6…

A: The value of the amount saved is the future value of the savings which is the savings amount plus…

Q: Money in my savings account earns interest at 10%annual rate. Each time I go to the bank, I waste 15…

A: To answer your questions, let's analyze each scenario:a) How often should I go to the bank?To…

Q: Skippy wants to have $16,000.00 in 7 years. His bank is offering an account that earns 2% compounded…

A: Compound = Monthly = 12Future Value = fv = $16,000Time = t = 7 * 12 = 84Interest Rate = r = 2 / 12 %

Q: Hak Young has accumulated some credit card debt while he was in college. His total debt is now…

A: Minimum monthly payment is calculated using following equation Periodic payment = PV×r1-1(1+r)n…

Q: Dave invests $3,700 in a savings account at his local bank which gives 3.296 simple annual interest.…

A: Investment means engaging your funds to generate income for the future. Interest is an income on…

Q: John deposits $1500 into a savings account earning simple interest at 2.19% annually. How much will…

A: Calculation of actual amount in account in future: Answer: John will have $1,582.13 in his account…

Q: If Greg borrows $140.00 from the bank at 6.5% exact simple interest, how much interest does Greg owe…

A: The simple interest can be computed using the principal amount, the time period, and the interest…

Q: Jane deposits 10,000 USD and opens a deposit account at a bank. It will also deposit 6,000 USD one…

A: in this we have to use future value formula to calculate interest rate.

Q: Bozo the clown decides to start saving money. So, every month he deposits $200 into an account which…

A: because you have posted multiple questions we will answer the first question Only, for the remaining…

Q: Imelda opens a savings account with $12,000, which pays an annual interest rate of 7.8%. If she…

A: Future value of the amount that is invested and also amount of interest accumulated over the period…

Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…

A: Amount is the sum of the initial principal amount and interest accumulated on it during the time…

Q: Steven just deposited $10,000 in a bank account that has a 12% interest rate.  Steven also plans to…

A: Future value is a concept in finance that refers to the amount of money an investment or a series of…

Q: Karen wants to have $22,559 in her investment account in 5 years. If her bank offers an annual…

A: Following details are given in the question : Future value = $22559 Time period = 5 years Interest…

Q: How much should Timothy's dad invest into a savings account today, to be able to pay for Timothy's…

A: Solution:- When an equal amount is deposited each period at beginning of period, it is called…