Your father invested $50,000 for your education in the year 2000 in ABC bank. The bank paid 8.00% per annum, compounded semi-annually and credited the proceeds to your account in the year 2022. You have directed the bank to deposit this amount for 3 years at 8.25% compounded annually. How much will you have in your account in 2025?

Your father invested $50,000 for your education in the year 2000 in ABC bank. The bank paid 8.00% per annum, compounded semi-annually and credited the proceeds to your account in the year 2022. You have directed the bank to deposit this amount for 3 years at 8.25% compounded annually. How much will you have in your account in 2025?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

See similar textbooks

Similar questions

When you were born, your grandfather established a trust fund for you in a bank. The account has been earning an annual interest of 11%. If this account will be worth 150,000 USD on your 20th birthday, how much did your grandfather deposit on the day you were born?
A mother wants to invest $8 comma 000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $ 480.00 comma how much money was invested in the CD account? The total interest earned after one year is $480.00 . How much money was invested in the CD account?
When you were born, your grandfather established a trust fund for you in the Cayman Islands The account has been eaming interest at the rate of 15% per year f this account will be worth $90,000 on your 23th birthday, how much did your grandfather deposit on the day you were born? Click the icon to view the interest and annuity table for discrete compounding when i 15% per year Choose the correct answer below. OA. $3,618 O B. $2.965 OC. $13,500 O D. $13,335 O E. $3,913 Click to select your answer.
A mother wants to invests 9,000.00 for her sons future education she invests a portion of the money in the bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is 540.00 how much money was invested in the CD acc
Slick Sam has a special relationship with his banker. The nature of the relationship is as follows: • The bank owes Sam $100 per year forever. The 1st payment is due in 1 year. • The bank will borrow or lend money to Sam at a constant effective rate of i per year. Today, Sam calculated the present value of the payments that are due to him as X. Sam can receive his first 16 payments at the end of year 16 in a lump sum. If he does that, then the total value of the lump sum and future payments at the end of the sixteenth year is X + 2,000. Calculate X. A B с D E 3,330 3,350 3,400 3,450 3,500
On the day your daughter is born, you deposit $1,000 in a college savings account that earns 8% compounded annually. On each of her birthdays thereafter, up to and including her 18th birthday, you deposit an additional $1,000. How much money is in the college account the day after her 18th birthday? a. $37,450 b. $38,950 c. $41,450 d. $46,800.
Your brother will begin his education this year. The university tuition is TL37420 per year and paid at the beginning of each of the following 4 years. If you can earn 16.3 percent interest per year on your funds, how much will you need to invest today in order to pay his university education? 101548.97 100400.98 135148.89 142424.02 121049.65
If your parents deposited $15,000 into an account for you when you were born as part of a college savings fund and that count is earning 10% annually, how much will you have in your college savings fund on your 18th birthday?
Currently (in August, 2021), Abby wants to have $20,000 available in August 2025 to make a college tuition payment.To be able to have this amount available, Abby will make equal annual deposits in an investment account earning 12% annually in August 2021,2022,2023,2024, and 2025. What is the annual amount to be deposited? a.$5,548 b.$4,000 c.$3,148 d.$2,270
Raymond just inherited RM12000. How much should Raymond deposit in an account earning 3% interest per year if he would like to have RM19442 in his account in 20 years? Include a cash flow diagram to your solution. Round your answer to the closest 2 decimal places.
On your child’s 1st birthday, you open an account to fund his college education. You deposit $300 to open the account. Each year, on hisbirthday, you make another deposit. Each subsequent deposit is 8% larger than the previous one. The account pays interest at 5%/year compounded annually. How much money is in the account immediately after the deposit on his 18th birthday?
Your grandmother just died and left you $112,500 in a trust fund that pays 6.3% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account? O a. $32,689.86 O b. $7,087.50 O c. $39,812.95 O d. $30,752.46 Oe. $24,085.01