A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and interest is compound monthly. How much money must be deposited to yield P8,000 at the end of 11 months?
Q: Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded…
A: FV=PV×1+Rmm×n where, FV = FUTURE VALUE PV= PRESENT VALUE R = RATE/ APR m= NO OF COUMPOUNDING IN A…
Q: Funds are deposited in a savings account at an interest rate of 8% per annum. What is the initial…
A: Annual interest rate = 8% Future value = P 10,000 Period = 10 Years
Q: How much money will be in a bank account at the end of 15 years if $100 is deposi ted today and the…
A: Following details are given in the question : Deposit today (Present value) = $100 Time period = 15…
Q: How much money will be in the bank account at the end of 4 years if $5000 is deposited at the end of…
A: Future value: It implies to the value that an investment will carry at some point of time in future…
Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…
A: Given, Amount (A) = P8,000 Principal (P) = ? Interest rate (i) = 12% Number of times compounded (n)…
Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals when a first…
A: The flow of payments which are made at regular interval of time are termed as annuity when amount is…
Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…
A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…
Q: a) $15,000 is invested in an account at time 0. At the end of 4 years, an additional $15,000 is…
A: Investment at time 0 15000 investment at the end of 4 years 15000 Rate of Interest for 10 years…
Q: How much (in dollars) is needed in an account that earns 10.8% compounded monthly to withdraw $1,000…
A: The formula used as follows: Present value=A1-11+rnr
Q: If you invest $7,500 in an account paying 8.35% compounded continuously, how much will be in the…
A: In the simple interest, we calculate the interest amount which we will receive after the specific…
Q: $7000 are invested in a bank account at an interest rate of 5 percent per year. Find the amount in…
A: To find the amount after certain period we have to use the compound interest formula : A = P 1+r100n…
Q: A sum of money invested now at 10 percent compounded semi-annually is to provide payments of $1500…
A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…
Q: Commercial bank pays 12% interest and compounds quarterly. If 1000 are initially, how much shall it…
A: Computation:
Q: A bank is offering 10% compounded quarterly. If you put $200 in an account, how much will you have…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…
A: There are various types of Bank Accounts, one of the basic and most commonly used is Saving's…
Q: compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much…
A: Future value: It represents the future worth of the present sum of money. The future value is…
Q: You have a financial goal of $140,000. The rate is 3% compounded annually. The time is 16 years.…
A: Formula to calculate annual periodic deposit Annuity=FV *r[(1+r)n-1] Where, FV = Future value r =…
Q: Find the future value of $300 deposited at the beginning of every year, for 15 years if the bank…
A: The series of cash flows discussed here is a form of an annuity due wherein an equal amount is paid…
Q: How much must be deposited at the beginning of every six months in an account that pays 5%…
A: Introduction Annuity Due represents a stream of equal payments made at the beginning of each period.…
Q: If you deposited $35000 and the bank is paying 4% interest compounded every 4 months, how much would…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: how much money must you put in a savings account today?
A: PV is the money value in today’s terms which is to be received at some future date whereas FV is the…
Q: What lump sum of money must be deposited into a bank account at present time so that $1,500 per…
A: Semi annual withdrawal = $ 1500 Period = 10 Years Number of withdrawals = 10*2 = 20 First withdrawal…
Q: The plan was to leave $8,000 on deposit in a savings account for 15 years at 7.5% interest…
A: Deposit amount now (D) = $8000 Interest rate (r) = 7.5% Withdrawal after 5 years (W) = $2000 Period…
Q: How much must be deposited at the beginning of each quarter in an account that pays 5% compounded…
A: In this question payment per quarter has to be find out. Future value , rate of return and number of…
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: How much will be in an account at the end of five years the amount deposited today is $10,000 and…
A: The given problem can be solved using FV function in exceL. FV function computes amount BALANCE in…
Q: You make deposits of $300 each year for the next 17 years at 5 % compounded annually. How much is in…
A: Annual deposit (P) = $300 Interest rate (r) = 5% Period (n) = 17 Years
Q: You plan to make 15 annual deposits in a saving account that pays 6% interest compounded annually.…
A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…
Q: you make 11 semi annual deposits of 550 pesos into a savings account the interest rate is 4.72%…
A: Interest rate=4.72% compounded quarterly Interest rate per quarter=4.72%4=1.18% Interest rate per…
Q: Suppose that a savings account attracts an interest rate of 1.6% per annum. How much would need to…
A: Present value means the current value of future money or cash flow given a specified rate of return.…
Q: If $0,000 per quarter is invested in an account that eams a nominal annual interest rate of 9%…
A: The amount in the account at the end of the 6 years is the future value. The nominal annual rate…
Q: How many years will it take $145,000 to grow to $645,000 if it is invested in an account with a…
A: We use NPER function in excel to calculate time taken
Q: How much monthly deposits must be made for 8 years and 6 months in order to accumulate P250,000 at…
A: A deposit is a financial phrase that refers to money that is kept in a bank. A deposit is a…
Q: How much must be deposited at the beginning of each month in an account that pays 6% compounded…
A: Monthly rate = 6%/12 = 0.5% Number of periods = 7*12 = 84 Future value required is $31,000 Find…
Q: What cash payment is equivalent to making payments of $944.00 at the end of every six months for 9…
A: We need to use present value of annuity formula to calculate cash payment Cash payment(PV)…
Q: suppose that $6,300 is invested at 3.1% annual intrest rate, componded monthly. how much money will…
A: Future Value(FV) is value of current amount at future date. It is computed by compounding that…
Q: .A series of equal cash $200 that is deposited at the end of each month will last for 10 years. How…
A: Monthly deposit (M) = $200 n = 10 years = 120 payments r = 9% per annum = 0.75% per month
Q: Suppose that $ 1,500 is placed into a bank account at the end of each month over the next 8 years.…
A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…
Q: Suppose that $30,000 is invested at 9% interest. Find the amount of money in the account after 7…
A: Future value of money is amount being deposited and amount of compounded interest accumulated over…
Q: If $1,500 is deposited in a savings account at the beginning of each year for 20 years (a total…
A: The formula to compute future equivalent worth of present value:
Q: In order to have $373,010 in 29 years, how much needs to be deposited each month into a bank account…
A: Information Provided: Future value = $373,010 Years = 29 Interest rate = 1.1% compounded monthly…
Q: What interest will be earned if 4,000 dollars is invested for 4 years at an annual rate of 7%…
A: The interest will be the future value of the investment less the amount invested.
Q: You have maxed out your $10,000 credit card, which is being charged 12.8% annual interest compounded…
A: Calculation of minimum monthly and weekly payments:Answer:The minimum monthly payment and weekly…
Q: Suppose that $6,000 is placed in a bank account at the end of each quarter over the next 10 years.…
A: Quarterly payment (Q) = $6000 n = 10 years = 40 quarters Interest rate = 13%
Q: With an annual effective interest rate of 6%, 500 USD is deposited into an account at the end of…
A: we will be using time value of money concepts and formula for this calcualtion Time value of money…
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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?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.
- What 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.A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and interest is compound monthly. How much money must be deposited to yield P8,000 at the end of 11 months? Show your detailed solution.How much money will be in the bank account at the end of 4 years if $5000 is deposited at the end of each year? The interest rate is 12% compounded monthly.
- A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and interest is compounded monthly. How much money would be deposited to yields Of 500 at the end of 11 months?A bank account pays 5% annual interest compounded semiannually. How much money should be deposited in it now so that the account contains 10000 Rials at the end of 11 years? (Give your answer to the nearest Rial)How much money must be deposited in a savings account each quarter in order to accumulate $10,000 at the end of 3 years, if the bank pays interest at rate of 3% per year, compounded monthly?
- How much money must be deposited at the end of each year in a savings account that pays 9% per year, compounded continuously to have to have a total of P 10,000 at the end of 14 years?Suppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month for the next year. If interest is at 6% compounded monthly, how much is in the account at the end of the year?Suppose that you deposit $10 at the end of each day into a savings account that pays 2% interest compounded daily. After a year, --------- is in the account?
