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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.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?set up an equation and solve each problem. Suppose that $500 is invested at a certain rate of interest compounded annually for 2 years. If the accumulated value at the end of 2 years is $594.05, find the rate of interest.
- Use the formula A = Pert to find the future value after 20 years of a $7,000 account that earns 8% interest compounded continuously, then compare that to the future value of the same account if interest is compounded annually. Round to the nearest cent. The future value of the account with interest compounded continuously is The future value of the account with interest compounded annually is The account earns $____ (what dollar amount) [more/less] when interest is compounded continuously %24If $5,000 is invested at an annual rate of 6.5% compounded continuously, the future value S at any time t (in years). a. Write the equation for future value. the he n b. What is the amount after 18 months? Round your answer to the nearest cent.If you put $1,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in 7 years? Round the answer to the nearest cent. Round FV-factor to three decimal places or use the Appendix A . (Hint: Use the future value formula.) $ How much interest will you earn during the 7 years? Round the answer to the nearest cent. $ If you put $1,000 at the end of each year into a savings account that pays interest at the rate of 3 percent a year, how much would you have after 7 years? Use the Appendix B . Round the answer to the nearest cent. Round FV-factor to three decimal places. $
- How much interest will be earned if $9,000.00 is invested for 7 years at 8% compounded every 4 months? HINT: You know how to find the future value of the investment at the end of the time period. To find the amount of interest earned, just subtract the PRINCIPAL from the future value.You would earn $ in interest. (Round to 2 decimal places.)Suppose that $1,000 is invested at 7% interest compounded monthly. Use the formula nt A = P 1 + (a) How long (to the nearest month) before the value is $1,250? 3 years, 3 months (b) How long (to the nearest month) before the money doubles? 10 x years, 0 xmonths (c) What is the interest rate (compounded monthly and rounded to the nearest percent) if the money doubles in 5 years? 13.94You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?
- Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you choose an account that pays 7% compounded annually (j,) instead of an account that pays a simple interest rate of 7% per annum? Round you answer to 2 decimal places. Your Answer: AnswerSuppose that you now have $4,000. How much will you have after 10 years if you leave it invested at 6.75% with annual compounding? Your answer should be between 6,170.00 and 10,250.00, rounded to 2 decimal places, with no special characters.What are the future value and the interest earned if $3800 is invested for 7 years at 8% compounded quarterly? (Round your answers to the nearest cent.) Give typing answer with explanation and conclusion