Suppose you deposit $469 per week in a bank account for 5 years. The interest rate(APR) is 7.2%, compounded weekly. What is the present equivalent value?
Q: Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded…
A: FV=PV×1+Rmm×n where, FV = FUTURE VALUE PV= PRESENT VALUE R = RATE/ APR m= NO OF COUMPOUNDING IN A…
Q: How much money will be in the bank account at the end of 4 years if $5000 is deposited at the end of…
A: Future value: It implies to the value that an investment will carry at some point of time in future…
Q: Suppose your bank pays 10% interest, compounded semiannually. Find out how much should be deposited…
A: Present value is the amount a person is willing to pay now, in order to get an amount for a…
Q: Suppose you have received a credit card offerfrom a bank that charges interest at 1.4% per…
A: Working note:
Q: Each day, you deposit $4.79 into a bank account whose annual rate is 1.6% with daily compounding.…
A: Daily deposit (P) = $4.79 Interest rate = 1.6% Daily interest rate (r) = 1.60%/365 =…
Q: Suppose a bank offer a loan for 2 years with fixed interest rate 9% per year compounded daily.…
A: Effective annual interest rate(EAR) refers to the actual interest rate which is received on deposits…
Q: Suppose that you make quarterly deposits into a savings account that earns 8% interest compounded…
A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…
Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…
A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…
Q: If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be…
A: We know that the formula to calculate the accumulated value of cash flow is C*(1+r)n, where C is the…
Q: If the bank states an effective interest rate of 13.5% per year, and there are 52.15 weeks, how much…
A: Formula for calculating weekly interest rate is:
Q: If the bank is paying 8% interest compounded quarterly, how much must you deposit today in your…
A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…
Q: Assume you make 10 equal annual deposits of $2000 into an account paying 8% per year. How much is in…
A: The amount available 6 years after the last deposit will be the future value of this annuity.
Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…
A: There are various types of Bank Accounts, one of the basic and most commonly used is Saving's…
Q: Suppose you deposit $1,250 at the end of each quarter in an account that will earn interest at an…
A: Computations as follows: Hence, the amount available at the end of four year is $24,225.28.
Q: Suppose we are going to make monthly deposits in to an account with an annual interest rate of 4.1%…
A:
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: Supposed you deposited rm5000 in a bank account that pays 5.25%with daily compounding based on a 360…
A: Principal (PV)=5000, Interest rate (rate)=5.25%, compounding daily. time period = 8 months, Total…
Q: If you borrowed P10,000 from a bank with 18% interest per annum, what is the total amount to be paid…
A: A bank is a financial institution that provides loans and borrowings to the borrowers or the…
Q: If a person deposits $3,000 at 6% per year simple interest, what compound interest rate would yield…
A:
Q: Suppose you deposit $22.000 in an account today that pays 6% interest, compounded annually. How long…
A: Information Provided: Initial deposit = $22,000 Future value = $76,000 Interest rate = 6% compounded…
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: Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose…
A: Here Investor has $8,675,309 to deposit for 1 year @ 12% in two options: Compounded annually…
Q: Suppose that you place $1,000 in a bank account each year for the next 20 years. How much would be…
A: Future value of annuity due can be calculated by using this equation Future value of annuity due…
Q: What lump sum of money must be deposited into a bank account at present time so that $1,500 per…
A: Semi annual withdrawal = $ 1500 Period = 10 Years Number of withdrawals = 10*2 = 20 First withdrawal…
Q: John Johnson borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 5.20 percent,…
A: In the given question we need to compute the effective annual interest rate (EAR) if the nominal…
Q: Suppose 500$ is initially placed in savings account and 500$ is deposited at the end of every month…
A: Future Value of Cash Flow = Amount Invested * ( 1+r)n Where r is Rate of Interest and n is period…
Q: What lump sum of money must be deposited into a bank account at the present time so that $500 per…
A: The regular or lump-sum amount that is received or paid after a specific time period rather than…
Q: Suppose you put $250 at the beginning of every month in a savings account that credits interest at…
A: Monthly deposit is $250. Annual rate of interest is 6%. Time period is 25 years. Compounding…
Q: Suppose that a savings account attracts an interest rate of 1.6% per annum. How much would need to…
A: Present value means the current value of future money or cash flow given a specified rate of return.…
Q: if you deposit 55,650 in a bank at 12% interest for a period of ten years what will be the feuture…
A: Formula: Future value = Present value*(1+rate)^years
Q: Suppose that $12,000 is invested in a savings account paying 5.6% interest per year. (a) Write the…
A: The future value is the amount to be received in future which were invested in an account which…
Q: You are considering investing $8,500 in a bank term deposit for 5 years. The term deposit will pay…
A: Time value of money Time value of money is a concept according to which money today is worth more…
Q: If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would…
A: Compound interest (also known as compounding interest) is the interest on a loan or deposit that is…
Q: Suppose that $1,500 is placed in a bank account at the end of each quarter over the next 20 years.…
A: Use the following formula to calculate the effective interest rate (EIR). Where i is the effective…
Q: Suppose you deposit $125 on the first of every month for 240 months, and the bank credits interest…
A: The term annuity depicts a stream of equivalent periodic cash flows over a specific time duration.…
Q: .A series of equal cash $200 that is deposited at the end of each month will last for 10 years. How…
A: Monthly deposit (M) = $200 n = 10 years = 120 payments r = 9% per annum = 0.75% per month
Q: After 6 years from today, what will be the purchasing power of the money in your bank account,…
A: Present Value of Investment Adjusted Rate of Return with regards to Inflation rate
Q: Suppose that $ 1,500 is placed into a bank account at the end of each month over the next 8 years.…
A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…
Q: Suppose that you deposit $750 into a bank account today. If the bank pays 8 percent APR per year,…
A:
Q: In order to have $373,010 in 29 years, how much needs to be deposited each month into a bank account…
A: Information Provided: Future value = $373,010 Years = 29 Interest rate = 1.1% compounded monthly…
Q: Suppose that $6,000 is placed in a bank account at the end of each quarter over the next 10 years.…
A: Quarterly payment (Q) = $6000 n = 10 years = 40 quarters Interest rate = 13%
Q: Suppose that you borrowed $20k for 36 months to buy a car last year at an annual interest rate of 5%…
A: Monthly payment is the fixed amount of monthly payment made by the borrower against the loan. The…
Q: If you borrow $1,000 and pay back $1,728 in three years, what annual rate of interest are you…
A: Annual Percentage rate (APR) is the percentage rate that shows the interest calculates on the…
Q: Suppose you have received a credit card offer from a bank that charges interest at 1.1% per quarter,…
A: The nominal rate is the rate that the financial institution quotes when giving out or receiving…
Solve normally, not excel. thanks!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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?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.
- 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 $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?Suppose you need to have $57,942.00 in an account 25.00 years from today and that the account pays 11.00%. How much do you have to deposit into the account 5.00 years from today? Suppose you deposit $1,101.00 into an account 7.00 years from today. Exactly 15.00 years from today the account is worth $1,466.00. What was the account's interest rate? Suppose you deposit $1,093.00 into an account 7.00 years from today that earns 12.00%. It will be worth $1,613.00 _____ years from today. Assume the real rate of interest is 2.00% and the inflation rate is 4.00%. What is the value today of receiving 10,528.00 in 15.00 years?
- Suppose you invest $100 in a bank account, and five years later it has grown to $134.39. What APR did you receive if the interest was compounded semiannually? What APR did you receive if the interest was compounded monthlySuppose you have a k5000 bank deposits. The interest rate is 6% compounded quarterly for 1 year. What is the effective annual interest rate (EAR)?Suppose you put $200 into a bank account at the annual interest rate of 7%. *Round your answer to the nearest dollar. How much money will this deposit be worth in one year?
- Suppose you put $100 into a savings account today, the account pays a nominal annual interest rate of 6 percent, but compounded semiannually, and you withdraw $100 after 6 months. What would your ending balance be 20 years after the initial $100 deposit was made?Suppose you deposit $1,500.00 into and account 7.00 years from today into an account that earns 14.00%. How much will the account be worth 14.00 years from today?Suppose you invest $103 nin a bank account, and five years later it has grown to $137.91. a. What APR did you receive, if the interest was compounded semiannually? b. What APR did you receive if the interest was compounded monthly?