Use the formula for computing future value using compound interest to determine the value of an account at the end of 6 years if a principal amount of ​$5,000 is deposited in an account at an annual interest rate of 4​% and the interest is compounded quarterly

Q: If $1, 200 grows to $1, 781 in 7 years, determine the interest rate over that period.

A: In the given question we require to calculate the interest rate which grows $1200 into $1781 in 7…

Q: What is the future value of a single $5,000 deposit earning 8 percent interest, compounded monthly,…

A: Formula:

Q: Use the appropriate formula to find the future value in dollars of $700 deposited at the beginning…

A: The answer is in the explanation section.Explanation:The interest is compounded annually, but the…

Q: e future value and the interest earned

A: Future value refers to the amount of the current asset at some future date based on the assumption…

Q: If the single payment present worth factor for 10 years is 0.30656. Determine the interest rate…

A: The present factor is the present value of $1 that has to be received/paid in the future.

Q: How much must be deposited at the beginning of each year in an account that pays 3% compounded…

A: Time value tells that amount received today is of more value than that of receiving the exact value…

Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

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

Q: Find the future value of each deposit if the account pays (a) simple interest, and (b) interest…

A: Future value is the value of current cashflow compounded at specified rate to future date.

Q: What is the future value of an annuity of $2,000 invested at the end of each of the next six periods…

A:

Q: In each situation described below, identify the initial payment, the term interest rate, and the…

A: The APR is the total amount of interest that is charged for the entire year. It provides a better…

Q: Calculate the present value of a loan that could be cleared by payments of $3,250 at the end of…

A: We need to use present value of ordinary annuity formula to calculate the loan amount for given…

Q: Use the compound interest formula for compounding more than once a year to determine the accumulated…

A: Here,Deposit Amount (PV) is $20,000APR (r) is 3.7%Time Period (n) is 32 yearsCompounding Period (m)…

Q: Assume that you make quarterly payments of $ 750 into an annuity paying 5% interest compounded…

A: Future value refers to an amount of the current asset at some future date. It is helpful in…

Q: Assume that you make quarterly payments of $ 475 into an annuity paying 3% interest compounded…

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

Q: Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded monthly.

A: Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded…

Q: Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of…

A: Future value can be defined as the future worth of the present cash flow that will be received from…

Q: How much money would be accumulated in15years for a deposit of $15,000 made at the end-ofyear zero…

A: The formula used as follows:

Q: nual, semiannual, and quarterly compunding periods, (1) calculate the future value if $5000 is…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: Calculate the future value of 6 payments at the end of the year of $10,000 with an annual interest…

A: 6 Payments at the end of the year = $10,000Interest rate = 8%Number of payments = 6

Q: What is the present($) worth of two $100 payments at the end of third and fourth years if the annual…

A: The formula for the calculation of present worth is as follows: Present worth=Future…

Q: ind the future values and the int arned for the following annuities very 2 months for 1 year, 8 mont…

A: Future values of annuities include the amount deposited and the interest being accumulated over the…

Q: Consider a $1,800 deposit earning 10 percent interest per year for 7 years. How much total interest…

A: Interest on interest is that under which is earned by the investor on his interest earned amount…

Q: use the appropriate formula to find the future value (in $) of $500 dollars deposited at the…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: What is the future value of an annuity of $2,000 invested at the beginning of each of the next six…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: Find the future value (in dollars) of the investment. (Round your answer to the nearest cent.)…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  where, P= annuity amount i.e. $8000 r =rate of…

Q: Find the present and the future value of quarterly payments of $2,000.00 for 5 years with interest…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: (1) calculate the future value if $6,000 is deposited initially at 11% annual interest for 5 years.

A: In this question we need to compute the future value from following details : Initial deposit =…

Q: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: If $1,000.00 is invested in an account for 30 years. Find the value of the investment at the end of…

A: The conceptual formula used:

Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…

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

Q: Calculate the present value of a loan that could be cleared by payments of $3,350 at the end of…

A: Here,Semi Annual Payments (PMT) is $3,350Time Period (n) in years is 7 yearsInterest Rate (r) is…

Q: Payments of $1000 each are made at the end of every year for 6 years to a savings account. Calculate…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…

Q: Calculate the dollar amount that would be in a savings account at the end of 5 years, given an…

A: Initial investment (P) = 701 dollars Rate of interest (i) = 2.76% (Compounded monthly) Time period…

Q: Find the final amount of money in an account if $7,400 is deposited at 7.5% interest compounded…

A: The interest rate compounds semi-annually. Hence, the interest rate that should be considered is…

Q: Use the appropriate formula to find the future value (in $) of $900 deposited at the beginning of…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Calculate the initial amount that would be in a savings account at the beginning of 6 years, given a…

A: Given  Interest rate =  3.14% Number of years = 6 Years Final amount received = 256 Future value is…

Q: If you deposit $368.00 into an account paying 15.46% annual interest compounded quarterly, how many…

A: The concept of time value of money will be used and applied here. As per this concept the worth of…

Q: What is the value today of receiving $4, 500 at the end of each year for the next 6 years, assuming…

A: Present value is the equivalent value of the future money based on time value of money that is…