You deposit $6000 into an account earning 8.8% annual interest, compounded quarterly. How many years will it take for this account to be worth $25,000?
Q: You plan to deposit $6,000 at the end of each of the next 25 years Into an account paying 10.3…
A: Perodic Payment(PMT) is $6,000 Per Year Interest rate is 10.3% Time Period 25 years & 50 Years…
Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…
A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%
Q: Suppose an individual makes an initial investment of $2,200 in an account that earns 7.8%,…
A: An individual investor made deposits initially and continues to invest on monthly basis for 12…
Q: You deposit $100 each month into an account earning 6% interest compounded monthly. a) How much…
A: Future value refers to the amount worth in future time which is deposited today by an investor at…
Q: You just deposited $9,500 in a bank account that pays a 4.0% nominal interest rate, compounded…
A: Future value is referred to as the value of the current asset in future date on the basis of an…
Q: Assume you deposit $5,400 at the end of each year into an account paying 10.5 percent interest. a.…
A: We will have to use the following formula to calculate the future value of an ordinary annuity:…
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 $7,000 into an account earning interest at a 7% APR. You keep the money in the account…
A: Initial deposit = $7,000 Interest rate = 0.07 or 7% Period = 5 years Money in account at the end of…
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 that 1 year from now you plan to deposit €1,000 in a savings account that pays a rate of 8…
A: If the bank compounds interest annually, amount in the account 4 years from now will be =€1,000×FVF…
Q: If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be…
A: We know that the formula to calculate the accumulated value of cash flow is C*(1+r)n, where C is the…
Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…
A: Here, Deposit Amount today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…
Q: What is the future worth of a series of equal year-end deposits of $3,000 for 15 years in a savings…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: how much money will be in the account? How much of it is interest?
A: Annuity payments are the fixed periodic payments that an investor or depositor makes into an…
Q: You plan to deposit $4,900 at the end of each of the next 15 years into an account paying 11.3…
A: Solution- Given that P=$4900 r=11.3% n=15 years Future value of Annuity- =P * [ (1+r)^n -1] /r
Q: If you initially invest $2200 in an account that earns 2.25% interest compounded continuously, how…
A: Initial investment (P) = $2200 Interest rate (r) = 2.25% Period (t) = 3 Years Mathematics constant…
Q: Suppose an individual makes an initial investment of $2800 in an account that earns 7.8%. compounded…
A: Given information: Initial investment is $2,800 Interest rate is 7.8% Number of periods is 12 made…
Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: A depositor puts $30,000 in a savings account that pays 4% interest, compounded quarterly. Equal…
A: A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a…
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: Find the annual deposit
A: Compound interest is the interest on interest. Under this method the interest is calculated by…
Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Assume you make 10 equal annual deposits of $2000 into an account paying 8% per year. How much is in…
A: The amount available 6 years after the last deposit will be the future value of this annuity.
Q: a) How much is in the account after the last deposit is made? (b) How much was deposited (c) What…
A: In order to find the following questions, one needs to use excel and apple functions like PMT, FV…
Q: You deposit $200 each year in an account for 15 years and then $400 each year in the same account…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: f K40, 000 is deposited at the end of each half year in an account that earns 6.2% compounded…
A: Comment - Multiple Questions Asked Interest It is the amount that the borrower must pay in order to…
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: Suppose you deposit $22.000 in an account today that pays 6% interest, compounded annually. How long…
A: Information Provided: Initial deposit = $22,000 Future value = $76,000 Interest rate = 6% compounded…
Q: You initially deposit $3,000 in to a savings account for 5 years, paying 6% compounded annually.…
A: We will first establish the timelines We deposit $3,000 for 5 years at an interest of 6%. t0 is…
Q: You invest $4,000 in an account that pays a fixed annual rate of 6% interest compounded yearly. How…
A: In the present question we require to calculate the future value after 7 years from the following…
Q: You plan to deposit $6,000 at the end of each of the next 25 years into an account paying 10.3…
A: Future Value: The worth of a asset today at a future date based on an expected rate of growth is…
Q: Assume you deposit $5700 at the end of each year into an account paying 11.25 percent interest.…
A: Given: Deposit = $5,700 Interest rate = 11.25% Future value= ?
Q: You deposit $3000 in an account that pays 88% interest compounded semiannually. After 33 years,…
A: Amount deposited, P = $ 3,000Future value of P deposited in an account offering annual interest rate…
Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: You plan to deposit $5,600 at the end of each of the next 20 years into an account paying 10.8…
A: making periodic payments is called annuity, thus we will be finding future value of annuity. We can…
Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 2% interest…
A: Future value (FV) refers to a means of estimating how much an asset or cash's present value (PV)…
Q: You have $9,259.70 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: Given: Rate = 13% PMT = -6000 Present value = -$9,259.70 Future value = $260,000
Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: You want to be able to withdraw $4500 from an account at the end of each 6-month period (that is,…
A: Using Excel PV function
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: Your bank account pays a nominal interest rate of 8%, compounded quarterly. You deposit $500 in the…
A: Here, Deposit today is $500 Deposit at the end of first year is $1,000 Interest Rate is 8%…
Q: Suppose an individual makes an initial investment of $1400 in an account that earns 7.8%, compounded…
A: Future value of a cashflow is the present value of the cashflow compunded at future date at…
Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…
A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…
Q: If you deposit $2000 in an account that pays 3.6% with quarterly compounding, what is the balance…
A: given, pv = $2000 r = 3.6% m =4 n= 6
Q: You deposit $5000 each year into an account earning 3% interest compounded annually how much will…
A: Amount we will have is future value of yearly payments future value is calculated using fv function…
Q: Suppose I have the choice of investing $25000 in two different accounts: Acct 1: 4.5%…
A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…
You deposit $6000 into an account earning 8.8% annual interest, compounded quarterly. How many years will it take for this account to be worth $25,000?
Give your answer to the nearest tenth of a year.
Blank 1. Calculate the answer by read surrounding text. years
Step by step
Solved in 2 steps with 2 images
- 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.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 annuity
- Use 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?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
- Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264You deposit $320 each month into an account earning 2% interest compounded monthly. Use the TVM Solver on the TI calculator. Round to the nearest cent (two decimal places). a) How much will have accumulated in the account in 20 years? $ b) How much money will you have deposited in the account during this time? $ c) How much of the amount in the account will be interest?
- You have $29,307.61 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $240,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations. ___yearsSuppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest credited to the account at the end of each year. Assuming that no withdrawals are made, complete the following: a. Find the balance in the account after 5 years. b. Find the balance of the account after 9 years and 10 months.If you deposit $4,000 at the end of each year into an account which earns 10.3%, how many years will it take until your account is worth $1,000,000? (using a spreadsheet)
