An amount of $8,430 is deposited into an account earning 7% interest compounded quarterly. How much will be in the account in 5 years and 9 months? Round the answer to the nearest cent. P/Y = C/Y = N = IY = PV = PMT FV =

An amount of $8,430 is deposited into an account earning 7% interest compounded quarterly. How much will be in the account in 5 years and 9 months? Round the answer to the nearest cent. P/Y = C/Y = N = IY = PV = PMT FV =

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

See similar textbooks

Related questions

Q: If an investment of $5,000 is made in an account returning 2% p.a. then how long will it take for…

A: Using excel NPER function

Q: Rounded to the nearest cent, find the amount of money accumulated in 5 years if $14000 is invested…

A: Given information: Present value amount is $14,000 Number of years is 5 years Interest rate is 10%

Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…

A: Compound Interest: It is the interest on a deposit or loan computed based on the initial principal…

Q: Equal – quarterly deposits of P 2,000 for 2 years which starts immediately is made at a savings…

Q: Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t…

A: Future value = Present value ( 1 + Rate of interest )Number of period

Q: w 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 future value for…

Q: Suppose that $17,000 is invested in a savings account paying 5.1% interest per year. (a) Write the…

A: Compound interest formula: A = P(1+r/n)^nt Where A is the future amount, P is the principal, r is…

Q: $15,000 is deposited for 7 years in an account earning 3% interest. (Round your answers to two…

A: Compound value of money can be defined as the amount of interest computed on interest earned…

Q: You place $4000 into an account paying 8% compounded annually. Inflation is 2.5% during each of the…

A: The real rate of return is the actual rate of return after taking inflation into account. The…

Q: Suppose that $80,000 is invested at 7% interest. Find the amount money in the account after 5 years…

A: The given problem can be solved using FV function in excel. FV function computes amount value in…

Q: What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded…

A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…

Q: Money borrowed today is to be paid in 6 equal payments at the end of 6 quarters. If the interest is…

A: Here, Quarterly Payment is P2,000 Interest Rate is 12% Compounding Period is Quarterly i.e. 4 Time…

Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…

A: The present value (PV) is $39,000. The number of compounding periods (n) is 8 (2 * 4). The quarterly…

Q: If a sum of $3000 is borrowed for six months at 9 percent simple interest per year, what is the…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Deposits of $1,320 are made into an account at the beginning of every 6 months for 2 years and 6…

A: Deposits made are of $1,320 Type of payment is begining of the period Interest rate is 3.07%…

Q: If $19,000 is deposited in an account earning interest compounded weekly at 5.87% for 13 years, what…

A: Effective Rate of Interest: It is the annual rate on a loan or investment considering the effects…

Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…

A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66

Q: 40,000 is repaid over 9 years with payments occurrir = the size of the periodic payment? = the…

A: interest rate is compounding quarterly so we have to find effective annual interest rate.

Q: You already have $54,700 in your savings account that earns 3.50% compounded annually. You will…

A: The concept of the time value of money states that the same amount of money has more value today…

Q: A bank deposit of P10,000 earns 3.5% pa compounded quarterly. If inflation is at 5% per year, what…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: How much will be received in 6 years if Php35,000 is deposited in an account earning 5.5% interest…

A: Compound interest is an investment method where the interest earned is reinvested back which earns…

Q: Suppose that $850,000 is invested in a savings account paying 5.25% interest per year. (Round…

A: the given information amount = $850,000 interest rate = 5.25%

Q: What is the nominal rate of interest if Php12,000 accumulates Php30,000 in 10 years with interest…

A: Solution: Present value (PV) 12,000.00 Future value (FV) 30,000.00 Period (Nper) 40…

Q: An amount of $6,880 is deposited into an account earning 3% interest compounded quarterly. How much…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Rs. 15,000 invested for 3 years at 18% p.a. Calculate Compound Interest and Accumulated value.…

A: Investment Amount = 15,000 Time Period (N) = 3 years Interest Rate = 18% p.a.

Q: You have $41,000 in an account earning an interest rate of 4%. What are the equal beginning-of-month…

A: The present value of an annuity due formula uses the same formula as an ordinary annuity, except…

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: If you make quarterly deposits for 3 years into an account that compounds interest at 1% per…

A: The formula of future value of an annuity: FV =A × (1+r)n-1r where A = Annuity amount FV =…

Q: (a) If $5,500 is invested at 1.35% interest, find the value (in dollars) of the investment at the…

A: Future Value: It refers to the future worth of the current amount and is computed by the product of…

Q: $2500.00 is invested in an account with a 3.1% interest rate that is compounded quarterly. How much…

A: The money at the end of one year can be computed using the Future Value Formula.

Q: What amount must be invested now in savings account earning 9% compounded quarterly to accumulate a…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: If 2,000 is invested at an interest rate at 8% compounded annually for 3 years, find the compound…

A: Interest means the extra amount which we received because of investment made and will be paid in…

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: Complete the table by finding the balance A when P dollars is invested at rater for t years and…

A: Given information: P is $1500 Rate is 9.5% T is 9 years

Q: $100 is deposited each quarter for 5 years. What is the future value of the account if interest rate…

A: FORMULA FVA = P*[(1+R)N-1]/R Where FVA - Future value of annuity P - Quarterly deposit amount i.e.…

Q: What value of r will make the future value of the account P5, 200 in six months?

A: Future Value: It is the future worth of the present cashflows or the present sum of money. Future…

Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…

A: Therefore, the future value if interest is compounded semiannually is $43,893.84.

Q: If an investment of $5,000 is made in an account returning 2% ,then how long will it take for the…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: MONEY BORROWED TODAY IS TO BE PAID IN 6 EQUAL PAYMENTS AT THE END OF 6 QUARTERS. IF THE INTEREST IS…

A: Borrowing is defined as the term, which used to allow the person to spread their funds around with…

Q: Suppose that $4500 is invested in an account that pays 2% annually and is left for 4 years. 1) How…

A: Given Information: Principal = $4,500 Rate = 2% or 0.02 Time = 4 years

Q: $1,000 is invested for 5 years in an account earning 8% annual interest, compounded semiannually.…

A: Details given are : Present value of investment = $1000 Interest rate = 8% p.a. Time period = 5…

Q: Suppose $10,000 is deposited into an account that earns 10% per year for 5 years. At that point in…

A: Value of the Corpus=10,000×1.105=$16,105.10 Thus, the value of the corpus after 5 years is…

Q: What is the amount of ten equal annual deposits that can provide five annualwithdrawals, where the…

A: Present value of the amount that is expected to be receiving in some future date is the current…

Q: At the end of two years, what will be the balance in a savings account paying 6% annually if $10,000…

A: In this question we need to compute the future value after 2 years.

Q: A certain sum of money is invested at 2 years at 12% compounded quarterly. If the sum is P43,000,…

A: Present value is equivalent value of money that is today of the future money to be received based on…

Question

An amount of $8,430 is deposited into an account earning 7% interest compounded quarterly. How
much will be in the account in 5 years and 9 months? Round the answer to the nearest cent.
P/Y =
C/Y =
N =
I/Y =
PV =
PMT =
FV =

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: INTRODUCTION

VIEW

Step 2: SOLUTION

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

An amount of $3,620 is deposited into an account earning 5% interest compounded quarterly. How much will be in the account in 11 years and 9 months? Round the answer to the nearest cent. P/Y = PV = I C/Y = PMT = 0 N = FV = I/Y =
An amount of $6,880 is deposited into an account earning 3% interest compounded quarterly. How much will be in the account in 11 years and 6 months? Round the answer to the nearest cent. P/Y = 4 C/Y = 4 IY = %3D PV = 6880 PMT = 0 FV = %3D Submit Question
An amount of $124 is paid at the end of every month into an account. If the nominal interest rate is 3.02% compounded semiannually, how long (in years and months) will it take for the payments to accumulate to an amount of $6,455.41? Use the integer value of N to calculate years and months. |CN = |2 P/Y = 12 I/Y = 3.02 FV 6,455.41 PMT = $ -124 = years N= 192 to the nearest integer) PV = $14,892.17 X x (round = month(s)
You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly. a) How much will you have in the account in 30 years? P/Y = C/Y = N = I/Y = % PV = $ PMT = $ FV = $ (round to the nearest cent) b) How much will be the total amount of money deposited into the account after 30 years? Total Deposited = $ (enter a positive value) c) How much total interest will you earn? Total Interest= $ (enter a positive value, and round to the nearest cent) ( Explain all point of question with proper step by step Answer. )
Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t years. (Use a 365-day year. Round your answer to the nearest cent.) P = $43,000, r = 9 3/4 % t = 9, compounded quarterly A = $
Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t years. (Use a 365-day year. Round your answer to the nearest cent.) P = $120,000, r = 2.75%, t = 4, compounded daily
Suppose that $4500 is invested in an account that pays 2% annually and is left for 4 years. 1) How much will be in the account if interest is compunded quarterly? 2) How much will be in the account if interest is compouded continuously?
An investment of $6000 is deposited into an account in which interest is compounded monthly. Complete the table by filling in the amounts to which the investment grows at the indicated times. (Round your answers to the nearest cent.) r = 6% Time (years) Amount 1 2 3 4 5 6
Suppose you invest $1,000.00 in an account with an annual interest rate of 6% compounded monthly (6%÷÷12 = 0.5% each month). At the end of each month, you deposit $275.00 into the account.Use this information to complete the table below. Round to the nearest cent in each step as needed. Month Prior Balance 0.5% Intereston Prior Balance Monthly Deposit Ending Balance 0 $1,000.00 1 $1,000.00 $275.00 2 $275.00 $1,561.40 3 $1,561.40 $275.00 4 $9.22 $275.00
What parameter is this question asking for? What deposit made at the end of each month will accumulate to $10,000 in five years at 4% compounded monthly? Select one: a. n b. PMT c. FV d. i e. PV
$480 is deposited at the beginning of every 6 months into a savings account. This will continue for 9 years at which point the balance in the account will be $11,894.90. If the interest on the account is compounded quarterly, what nominal rate is this account earning? Round to 2 decimal places
If you were to use the TVM Solver to determine how much money would be in an account (that earns 1.2% interest compounded monthly) after 32 years when $175 was deposited into the account at the end of each month, then you would enter N = 1% = PV = PMT = FV = and P/Y = C/Y = Which of the variables above did you solve for (N, 1%, PV, PMT, or FV)?