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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?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?
- 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 $1 table in Appendix B and verity that your answer is correct.You deposit 200$ each month into an account earning 8% interest compounded monthly. Round to the nearest vent as needed. How much will you have in the account in 25 years? How much total money will you put into the account? How much total interest will you earn?Suppose your savings account pays 6% interest compounded monthly. If you deposit $18,000 forfour years, how much will you have?
- You deposit $200 each month into an account earning 3% interest compoundedmonthly.a. How much will you have in the account in 30 years?b. How much total money will you put into the account?c. How much total interest will you earn?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?You deposit $400 each month into an account earning 3% interest compounded monthly. Round to the nearest cent as needed. a) How much will you have in the account in 30 years? $ b) How much total money will you put into the account? c) How much total interest will you earn? $
- You will need $46000 for a down payment on a house in 9 years. How much should you deposit in a savings account earning 3.75% compounded quarterly to be able to do this?Suppose that you vow to save $650 a month for the next 6 years, with your first deposit one month from today. If your savings earn 12.05% pa and interest is calculated monthly, determine the total in your account at the end of the 6 years. Give your answer to the nearest penny.You deposit $1000 each year into an account earning 8% compound annually. A) How much will you have in the account in 10 years? B) How much total money will you put into the account? C) How much total interest will you earn?