6. You deposit $2100 in a savings account paying 5.5% simple interest. The solution to this problem is not accomplished by an excel formula. Use the formula I = PRT where T is in years a) How much interest will you earn in 18 months? b) How much will be in your account at the end of 18 months?
Q: How much should you invest into an account with 3.2% interest compounded quarterly if you want to…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: 6. You want to have $4000 in your savings account after 2 years. Find the amount you should deposit…
A:
Q: the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of…
A: The future value of annuity due is the total future value of each cash flow which is made at the…
Q: Imagine you want to earn $1000 in total after 3 years. The Bank A says that account earns 5%…
A: In simple interest, the rate of interest is applied on the principal amount only whereas in compound…
Q: Assume you deposit $5,400 at the end of each year into an account paying 10.5 percent interest. a.…
A: We will have to use the following formula to calculate the future value of an ordinary annuity:…
Q: 7. If you deposit $14,000 in a bank account that pays 4.7% interest annually, how much would be in…
A: Future Value = Deposit * [ 1 + Interest rate ]Number of years
Q: How much would you have to deposit at the end of the year in an account that pays an interest rate…
A: Information Provided: Term = 15 years Future value = $20,000 Interest rate = 7.6% compounded monthly
Q: If you deposit $5,000 in a bank account that pays 6% interest annually, how much will be in your…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
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: Suppose you invest $190 a month for 7 years into an account earning 9% compounded monthly. After 7…
A: Future value of money includes the principal amount and the compounding interest.
Q: Suppose you invest $190 a month for 6 years into an account earning 8% compounded monthly. After 6…
A: The following formula will be used:
Q: How much would you need to deposit in an account right now in order to have $2,000 in the account in…
A: Amount = $2,000 = A Time period = 10 years = T Interest rate = 2% = R Compounded monthly where it…
Q: Please don't use excel You plan to deposit $12,000 in an account that earns 6% annual interest,…
A: Interest is an extra payment which will received on deposited value for the period. It increase the…
Q: Suppose you need to hand $52,569 in an account 25 years from today and that account pays 6%. How…
A: Future vaue =52569Interest rate=6%
Q: Suppose you will save P 3,000 at the end of every three months in a bank that pays 3% compounded…
A: Future value is the value of an asset or a current asset at a future date based on an assumed rate…
Q: If you deposit $8,000 in a bank account that pays 4% interest annually, how much will be in your…
A: Deposit=$8000Interest rate=4%Number of years=5
Q: Suppose you currently have $4,800 in your savings account, and your bank pays interest at a rate of…
A: Present value is the sum of money that must be invested to achieve a specific future goal. Future…
Q: You want to be able to withdraw $1,000 from a savings account at the end of year 1, with withdrawals…
A: The present value of a growing annuity is the current value of an annuity which is growing at a…
Q: You want to be able to withdraw $50,000 each year for 20 years. Your account earns 8% interest. a)…
A: a) Hence, the amount in the account at the beginning is $490,907.37 b) Hence, the total money pull…
Q: Suppose you want to have $700,000 for retirement in 25years. Your account earns 9% interest. a) How…
A: In this we need to calculate the future value factor monthly and than calculate the monthly payment…
Q: Hamilton wants to accumulate ₺ 24.000 at the end of 4 years. It starts quarterly payments in a bank…
A: Amount at the end of 4 years = 24000 Years = 4 Terms(n) = 4 *4 = 16 quarterly deposits Rate (r) = 6%…
Q: Suppose you want to have $800,000 for retirement in 25 years. Your account earns 7% interest. a)…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, r = rate of interest per period i.e.…
Q: You want to be able to withdraw $45,000 each year for 25 years. Your account earns 6% interest. a)…
A: Given: Withdraw amount =$45000Interest rate annually =6%Time=25 years
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:
Q: Suppose you decide to deposit $11,000 in a savings account that pays a nominal rate of 6%, but…
A: The interest rate that did not take inflation, any fees on the loans, and compounding of the…
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 want to have $400,000 for retirement in 25 years. Your account earns 7% interest. a.how…
A: Working note:
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
Q: b. You have a $20,000 note payable which is due in three years. How much money must you put into a…
A: Solution d: N = 1 PV (Future value of at the end of 3 years) = $20,000 Interest rate (I) = 3%
Q: Having trouble, please help! You would like to have $1,000,000 when you retire in 35 years. How…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: (a) A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to…
A: a) Let the initial amount = P Final amount = Double of the initial amount = 2P r = 5.5% per annum =…
Q: You want to be able to withdraw $20,000 each year for 30 years. Your account earns 5% interest. How…
A: Given, Amount withdrawn each year (P) = $20,000 Rate of interest (i) = 5% or 0.05 Number of years…
Q: You want to be able to withdraw $50,000 each year for 15 years. Your account earns 7% interest. a)…
A: Here, Annual Withdrawals (PMT) is $50,000 Time Duration is 15 years Interest Rate is 7%
Q: 1. If you deposit OMR 32000 today in to a bank account that pays 4% interest compounded, how much…
A: 1. we need to calculate future value of OMR 32,000 after 5 years at 4% interest rate. so, future…
Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…
A: Future value is the expected value of annual deposit to be made at specified interest rate. Given:…
Q: your credit card has a balance of $4,500 and an annual interest rate of 16%. you decide to pay off…
A: The monthly deposit is calculated by dividing the loan balance with the PVIFA at 1.33% and 36…
Q: You want to be able to withdraw $50,000 each year for 30 years. Your account earns 5% interest.…
A: This the question of present value of ANNUITY. Annuity is a equal stream of cashflow at equal…
Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…
A:
Q: How much do you need to deposit into a bank in order to receive proceeds of $200,000 in 5 years if…
A: The equation is, PV=FV÷1+in Where, Present value is represented by PV Future value is represented by…
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: If you deposit $3,000 in a bank account that pays 12% interest annually, how much will be in your…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: a. You are planning for retirement, and would like to have $1,000,000 in the bank when you turn 65.…
A: Compounding is a concept used in investing. In case of compounding, interest is earned on both the…
Q: Suppose you decide to deposit $18,000 in a savings account that pays a nominal rate of 6%, but…
A: In order to take investment decisions, the investor will look forward for evaluation. The evaluation…
Q: You want to be able to withdraw $25,000 each year for 20 years. Your account earns 10% interest.…
A: Part A-C:Calculation of Amount in the Account, Total Money in the Account and Total Interest:A) The…
Q: You want to be able to withdraw $45,000 each year for 25 years. Your account earns 10% interest. a)…
A: Annual withdraw each year(P) = $45,000 Interest Rate(r) =10% Years(n) = 25
Q: You will be able to deposit $4,000 at the end of each of the next 5 years in a bank account paying…
A: We need to use future value formula to calculate future value of single deposit and future value of…
Q: 4. You plan to deposit P2, 500 in the bank now and another P2, 500 after 2 years. After four years…
A: Deposit in year n = Dn Withdrawal in year n = Wn D0 = P 2500 D2 = P 2500 W6 = P 6500 We need to find…
Q: Hamilton wants to accumulate ₺ 100.000 at the end of 4 years. It starts quarterly payments in a bank…
A:
a) How much interest will you earn in 18 months?
b) How much will be in your account at the end of 18 months?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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 $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.PLEASE don't use excel for this. Show the solution with formula needed. SIMPLE INTEREST 1. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay at the end of 9 months? How about at the end of 1 year and 6 months? COMPOUND INTEREST 1. If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded quarterly, what will it become after 1 year? And what is the effective rate? 2. An investment of P3,000,000.00 earns interest of 9% compounded continuously. What is the effective rate of interest?
- 4. How much should you deposit in an account so that you can withdraw $5300 every year for the next 18 years. Interest rate is 6%. Please do not use excel. Also, include cashflow diagram if possible.You plan to deposit $700 in a bank account now and $200 at the end of one year. If the account earns 3% interest per year, what will the balance be in the account right after you make the second deposit? There will be $ in the account right after the second deposit. (Type an integer or a decimal.) w an example .... Get more help. Save Clear all InS You deposit $1,200 in your bank account. a. If the bank pays 5% simple interest, how much will you accumulate in your account after 8 years? Future value Saved b. How much will you accumulate if the bank pays compound interest? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Future value M Question 7
- How much would you have in your savings account if you put $1,902 in an account today that pays 8% for 7 years? For this problem, use the mathematical formula to find the answer and show all of your work (Do not round intermediate calculations. Round your answer to 2 decimal places.)please correctly solve.and not use of excel not use excel. Q)You have $3,500 on a credit card that charges a 19% interest rate. If you want to pay off the credit card in 4 years, how much will you need to pay each month (assuming you don't charge anything new to the card)?4. Consider a credit card with a balance of $7000. You wish to pay off the credit card, which has an APR of 17.99%, within 1 year. Calculate the following. Round your answer to the nearest cent, if necessary. a. Find the number of months you will need to pay the credit card if you pay $585 per month. b. Will you meet your goal and have the credit card paid in one year?
- Please indicate what you entered into your calculator to solve these problems. 1. You graduated with $28,000 in school loans. You will make annual payments of $4,000 at the beginning of each year for the next 10 years. What annual rate of interest are you being charged on your school loans? 2. You bought equipment for $23,000 and agreed to make monthly payments at the end of each quarter for 5 years. Assuming you are being charged 9% interest compounded QUARTERLY, how much will your QUARTERLY payments be? 3. You currently have $750,000 in your building fund. If you start depositing an additional $20,000 per year into this account at the beginning of each year, how much will be in the account after 6 years assuming 5.5% interest compounded annually? 4. You want to start saving for a new car and have decided to put S$90 per month at the beginning of each month into an account which earns 6% compounded monthly. You would like to be able to buy a car for $25,000. (a) How many deposits will…2. Suppose you have a bank account into which you make $100 deposits each month. You find a bank account paying r 100% (r is a decimal rate) per month. You would like to save up for a $2,000 car down payment, which you would like to have in 15 months. What must the bank account pay in order for this to be accomplished?If you deposit money today in an account that pays 10.7 percent annual interest, how long will it take to double your money? a. 6.82 years b. 9.35 years c. 10.70 years d. 2.73 years e. The answer cannot be calculated without knowing how much money is initially deposited.