What lump sum of money must be deposited in a bank account at present time so that P 500 monthly can be withdrawn for five years with the first withdrawal scheduled six years from today? Interest rate is 9% compounded quarterly. P 14,170 P 15,160 P 12,190 P 13,180
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.How much money should be deposited in a bank paying a yearly interest rate of 8% so that after 10 years the accumulated amount will be $30,000? Select one: O a. none b. 13,895 O c. 14,895 d. 12,895 e. 15,895
- An Initial payment of $6,000 is deposited Into a bank with a nominal annual Interest rate of 9.5%, compounded semi-annually. You would like to withdraw this amount In in a series of 5 equal annual sums, with the first withdrawal being 1 year form the deposit. What is the amount that should be withdrawn each year? O $3,571.71 $2,571.71 O $2,271.71 O $1,571.71Part B: Suppose a bank offers you a rate of 5% compounded quarterly. If you put $8,000 into this account today, how much will you have at the end of 7 years? Interest rate: savings amount: years: Number of compound periods: compounded rate: Amount at the end of the period: Please show formulasWhat lump sum of money must be deposited into a bank account at the present time so that $500 per month can be withdrawn for five years, with the first withdrawal scheduled for six years from today? The interest rate is 0.75% per month.
- Suppose $1,000 is deposited in a bank account today (time 0), followed by $1,000 deposits in years 2, 4, 6, and 8. At 6% annual interest, how much will the future equivalent be at the end of year 12?How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum, compounded quarterly? A P1,903.34 B P1,516.96 P8,059.21 D) P8,223.16What will a deposit of $4500 at 7.8% compounded semiannually be worth if left in the bank for six years? Use the TMV calculator to fill in the table. N I% 7.8 PV -$4500 PMT 0 FV P/Y C/Y 2
- 1. A man deposit 50, 000 in a bank account at 6% compounded monthly for 5 years. If the inflation rate of 6.5% per year continues for this period, will this effectively protect the purchasing power of the original principal? SOLUTION:What lump sum of money must be deposited in a bank account at present time so that Php 500 per monthly can be withdrawn for five years with the first withdrawal scheduled six years from today? Interest rate is 9% compounded quarterly.Given below are the future value factors for 1 at 11% for one to five periods. Interest is compounded annually at 11%. Periods Future Value of 1 at 11% 1. 1.110 2. 1.232 1.368 1.518 5 1.685 What amount should be deposited in a bank account today to grow to $27400 three years from today? $27400 x 1.368 x 3 $27400 + 1.368 $27400 + 1.110 x 3 $27400 x 1.368 3. 4.