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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityUse the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
- Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest rate of 7% that compounds monthly. How much interest will be paid to this account?Consider a $1,000 deposit earning 7 percent interest per year for six years. What is the future value? How much total interest is earned on the original deposit? How much is interest earned on interest?What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after five from now , and the last one will deposit at begin of the fifteenth year ? Assume interest rate ( 7 % ) ?
- If you deposit $287.50 into an interest-bearing savings account today, what rate of interest must be compounded annually for it to grow to $650.01 in 14 years?If the interest rate on an account is 11.5% compounded annually, approximately how many years will it take to triple the deposit?If you deposit $63,679.00 at 10.16% annual interest compounded quarterly, how much money will be in the account after 19.0 years? Question 9 If you deposit $1,760.00 into an account paying 11% annual interest compounded monthly, how many years until there is $2,837.00 in the account?
- How much do you have to deposit today so that beginning 14 years from now you can withdraw 15,000 a year for the next 4 years (periods 14 through 17) plus an additional amount of 30,000 in that last year (period 17)? Assume an interest rate of 11 percent.Assume a 360 day year, when a 48,000, 90 day, 8% interest bearing note payable matures, the total payment will be around your answer to the nearest whole dollar.Suppose you put $100 into a savings account today, the account pays a nominal annual interest rate of 6 percent, but compounded semiannually, and you withdraw $100 after 6 months. What would your ending balance be 20 years after the initial $100 deposit was made?
