Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9% interest, compounded annually. How much will you have when the CD matures? a. $6,358.50 b. $6,190.68 c. $5,582.22 d. $6,976.63 e. $2,439.80
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- 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?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.
- 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 annuityYou 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.Suppose you have $1,000 and plan to purchase a 1-year certificate of deposit (CD) that pays 0% interest, compounded annually. How much will you have when the CD matures?
- Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that pays 6% interest, compounded annually. How much will you have when the CD matures?Your bank offers a 10-year certificate of deposit (CD) that pays 6.5% interest, compounded annually. If you invest $2,000 in the CD, how much will you have when it matures? $3,754.27 $3,941.99 $4,139.09 $4,346.04 $4,563.34If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded annually, how much will you have after 8 years of saving? O a. $633,523 O b. $37,566 O c. $473,672 O d. $450,793 O e. $557,760
- You are able to make a current deposit in the amount of $21,605.49. The expected discount rate is 9.6%. Interest is earned on an annual basis. The time period is 10 years. What is the size of the annual withdrawal possible under these circumstances? a. $2,160.54 b. $3465.00 c. $3,456.00 d. $4,356.00Assume you deposit $1,000 today in an account that pays 8 percent interest (compounded annually). How much will you have in four years? Group of answer choices $1,320 $1,360.50 $1,080 $735.02You plan to deposit $3,000 at the end of each year for three years, starting with the first deposit today. If the account pays 6%, how much will you have at the end of year 3? A. 3,573B. 10,124 C. 10,719