Q: A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500…
A: Here, First Deposit is $10,000 Constant Decrease in payment is $500 Interest Rate is 15% Last…
Q: You have just deposited $5,000 into an account that promises to pay you an annual interest rate of…
A: Amount of deposit=$5000Interest rate=5.3%Number of years=10
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Q: You deposit money into a savings account which offers a rate of 5.75% compounded weekly. five years…
A: Future Value (FV)=$20,200 Duration (n)=5*52=260 periods Rate per period (i)==5.75%52=0.0011
Q: Suppose you invest $1,100 in an account paying 5% interest per year. What is the balance in the…
A: The Future Value of a lump-sum: The value of a one-time investment made at present earns interest…
Q: You deposit $500 in an account earning 7% interest compounded annually. How much will you have in…
A: We can use the concept of time value of money. As per this concept when finding the present value of…
Q: 1. If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in…
A: Dear Student, as per Bartleby answering guidelines we can answer only the first one if the student…
Q: If you deposit $2,000 in a bank account that pays 6% interest annually, how much will be in your…
A: Solution- Given-The present value of deposit is=$2,000The rate of interest is=6%Time is…
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Q: If you saved $5,000 per year (at the end of each year) for 10 years in an account with a 4% interest…
A: Here, To Find: Future value (FV) =?
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A: Here we can apply the principles, concepts and formula of time value of money to solve the question.…
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Q: You plan to deposit $500 in a bank account now and $600 at the end of the year. If the account…
A: Solution: The amount in account after second deposit will be the future value of first deposit and…
Q: How much do you have to invest today in a savings account that returns 6.5% interest, compunded…
A: Amount after 10 years = $25,300 Amount Invested =Let P Years =10 Interest Rate(r) =6.5% compounded…
Q: How much would you need to deposit in an account now in order to have $6000 in the account in 5…
A: The question gives the following information:
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A: Annuity An annuity is the series of payments which is received or paid for a certain period of…
Q: ompute how much you would have in a savings account 5 years from now if you invest 1,000 today, take…
A: Solution 1: Annual interest rate = 8% Nos of periods = 5 Future value = 1,000 * (1+0.08)^5 = 1,000 *…
Q: You deposit $4000 in an account earning 5% interest compounded monthly. How much will you have in…
A: Given: Interest rate = 5% Present value = $4,000 Period = 10 years
Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…
A: Future value of annuity due can be calculated by using this equation Future value of annuity due…
Q: You need to have 80,000 at the end of 7 years. To accumulate this sum, you have decided to save a…
A: Time Period = 7 years Future Value Required = 80,000 End of period deposits Interest Rate = 11%…
Q: How would you need to deposit in an account now in order to have $3000 in the account in 5 years?…
A: Given, Future Value = $3000 Time period = 5 years Interest rate = 7% Compounding = monthly
Q: Suppose you have decided to put $200 at the end of every month in a savings account that credits…
A: Future value of annuities includes the amount being deposited and amount of compounding interest…
Q: You want to be able to withdraw from a savings account $800 at the end of year 1, $900 at the end of…
A: present value formula: present value =future value1+ratetime
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A: We will make use fo the financial calculator to calculate the FV. Inputs are: n = number of periods…
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A: The future value is the amount to be received in future which were invested in an account which…
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Q: Suppose you have decided to put $500 at the beginning of every month in a savings account that…
A: Monthly deposit (m) = $500 Monthly interest rate (r) = 0.00416666666666667 (i.e. 0.05 / 12) Number…
Q: If you deposit $500 every 6 months for 7 years at an interest rate 20% compounded quarterly, how…
A: The amount at the end of 7 years is the future value of the semiannual deposits.
Q: If you put 20,000 in a savings account that pays interest at the rate of 4% compounded quarterly,…
A: Compound interest also called interest on interest. It is the addition of interest in the principal…
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A: Following information is given in the question: Present value (Investment today) = $1100 Time period…
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A: Future value = $ 30,000 Time = 7 years Interest rate = 2% Let, the monthly deposit = $P Then,…
Q: How much would be in your savings account in 12 years if you deposited $1,500 today? Assume the bank…
A: Given details are : Present value = $1500 Time period = 12 years Interest rate = 5% We need to…
Q: You deposit $100 in a savings account today, and this account accrues interest compounded annually…
A: Compounding is the power of increasing the amount of investment by adding interest in principal and…
Q: Suppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 forfour…
A: Time value of money (TVM) means that the money received today will be worth more than the money…
Q: You deposit money into a savings account which offers a rate of 5.75% compounded weekly. five years…
A: we have to calculate weekly interest rate and than calculate present value.
Q: If you deposit $300 now into a savings account and increase your deposits by 10% each month. How…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: Your savings account pays 4% interest on the $40,000 you deposited at time 0. Inflation was 3% for 4…
A: Given information: Principal value is $40,000 Interest rate is 4% Inflation is 3% for 4 years…
Q: You have decided to open a savings account and put $9000 in your local bank at an interest rate of…
A: Given: Present value = $9,000 Interest rate = 0.6% Years = 8
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A: Bank charges interest rate when you borrow money and these are to be paid equal annual payment or…
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A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…
Q: How much would you need to deposit in an account now in order to have $4000 in the account in 5…
A: We need to use compound interest formula given below to solve this problem. A=P(1+i)n Where A= Final…
Q: If you put $6,000 in a savings account that yields an 1% rate of interest compounded daily, what…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: How much would be in your savings account in 7 years after depositing $100 today if the bank pays 5…
A: Using excel FV function
- You start a savings account with $1,500 and an interest rate of 6% compounded yearly. How much is in the account after 7 years?
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- 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?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?
- 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 annuityYou 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.
- If you deposit $3,500 monthly into a savings account which earns 4.25% interest rate compounded annually, how much will you have after 7 years of saving?Suppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 forfour years, how much will you have?You decide to deposit $5000 in a bank account paying 3.5% interest. What is the value of your savings in one year?
- Your bank offers a savings account that pays 2.5% interest, compounded annually. If you invest $1,000 in the account, then how much will it be worth at the end of 25 years?You deposit $204 today into a bank account that earns 1% annually. How much will be in your account after 10 years?If you deposit OMR 16830 in your account in a bank. Suppose the bank pays 8% compound interest half yearly. Calculate future value of your money in 5 years.
