5 To finance a vacation in 2 years, Elsie saves $390 at the beginning of every six months in an account paying interest at 10%compounded semi-annually.(a) What will be the balance in her account when she takes the vacation?(b) How much of the balance will be interest?(c) If she waits an additional year to start her vacation, and continues to save the same amount of money, how much more moneydoes she have to spend?a) The balance in her account will be SO:(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)b) The amount of interest will be $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)c) She will have an extra S to spend on her vacation.(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Future Value of Annuity Due: It is the future value of annuity payments made at the beginning of…

Answered: a) The balance in her account will be S…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 5E

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To finance a vacation in 2 years, Elsie saves $380 at the beginning of every six months in an account paying interest at 13% compounded semi-annually. (a) What will be the balance in her account when she takes the vacation? (b) How much of the balance will be interest? (c) If she waits an additional year to start her vacation, and continues to save the same amount of money, how much more money does she have to spend?
To finance a vacation in 4 years, Elsie saves $370 at the beginning of every six months in an account paying interest at 10% compounded semi-annually. (a) What will be the balance in her account when she takes the vacation? (b) How much of the balance will be interest? (c) If she waits an additional year to start her vacation, and continues to save the same amount of money, how much more money does she have to spend? a) The balance in her account will be s (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) b) The amount of interest will be S. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) c) She will have an extra S to spend on her vacation. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
A person needs $17122 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 20 years starting on the second year. The annual interest rate being charged is 10% compounded continuously. What is the amount of each payment?
Can you please help me work this problem out in detail? Carol is depositing $250 into an account every six months earning 6%, compounded semiannually. How much money will be in the account after 5 years?
Mary wants to have $14000 for a trip to Mexico in five years. How much does she need to deposit at the end each month into an account earning 3.6% compounded monthly in order to have the money she needs?
Rebecca Carlson purchases a car for $25,000 and finances her purchase by borrowing the money at 8% per year compounded monthly; she pays off the loan with equal monthly payments for 5 years. What will be the size of her monthly loan payment?
Danny is saving towards his vacation. He has determined that the total cost including airfare and accommodation will amount to $5,000. a. If he sets aside $400 per month from his salary, starting from the end of this month, in an account that pays interest of 9% per annum, will he have enough to make the trip at the end of the year? b. How much more will he have in the account if he made his first deposit of $400 today? What kind of annuity is this?
Carol wants to invest money in an investment account paying 8% interest compounding semi-annually. Carol would like the account to have a balance of $58,000 three years from now. How much must Carol deposit to accomplish her goal?
How much should Brianna's dad invest in a savings account today, to be able to pay for Brianna's rent for the next six years, if the rent is $750, payable at the beginning of each month? The savings account earns 3.19% compounded monthly. Please explain in details
You want to save the down payment required to purchase a vacation home at the end of four years. If the required down payment is $75,000 and you can earn 6% a year on your savings account, how much do you need to set aside at the end of each year for the next four years?
To help with a down payment on a home, Jenny is going to invest. Assuming an interest rate of 1.67% compounded quarterly, how much would she have to invest to have $38,900 after 7 years?
Dory deposits a certain amount of money into her savings account at the beginning of each quarter for the next 4 years. She wants to have Php. 100,000.00 after 4 years. If the interest rate is 8% compounded quarterly, how much does she have to deposit at the beginning of each quarter? Create an amortization table

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