1. Calculate the future worth of 20 annual $4,000 deposits in a savings account that earns 8% compounded monthly. Assume all deposits are made at the beginning of each year.

Q: 7. Assume that today you made an initial deposit in the amount of $16,000 into a savings account…

A: Future value of an initial deposit paying simple interest is calculated using following equation…

Q: 2. Use this information to answer the following questions: a) Let's say you invest $10,000 into each…

A: Computation A:

Q: A person deposits an annual amount into a savings account that decreases at a constant rate of $ 500…

A: Here, First Deposit is $10,000 Constant Decrease in payment is $500 Interest Rate is 15% Last…

Q: A bank offers all savings accounts 5% interest compounded annually. If one account has a principal…

A: An account doubles when the present value becomes 2 times of itself. In order to become two times,…

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: It is a case of the future value of an annuity due where the deposit is done at the beginning of the…

Q: You wish to accumulate $60,000.  You make 14 quarterly deposits into a savings account with an…

A: Amount required (F) = $60,000Number of deposits (n) = 14Quarterly interest rate (r) = 0.12Amount of…

Q: None

A: Given information: Annual deposit (PMT) = $910 Number of year (n) = 6 Interest rate (i) = 4% or 0.04…

Q: 8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25.…

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

Q: A bank features a savings account that has an annual percentage rate of r=3.1r=3.1% with interest…

A: Present value of deposit grow with amount of interest and period of deposit and grow to much larger…

Q: Marcus is trying to decide which checking account to open.  Bank A's account pays 1.6%, compounded…

A: To compare the returns on two different accounts, we need to calculate the effective annual interest…

Q: Bank A pays 7% simple interest on its savings account balances. Bank B pays 5.5% interest compounded…

A: STEP 1 Simple interest is the amount of interest charged on a specific principal amount at a…

Q: 1.Assume that you deposit $946 into an account that pays 11 percent per annum. How much money will…

A: Time value of money refers to the concept that money available at the present time is worth more…

Q: You would like to earn simple-interest $1 800 from a term deposit at 4.25% in 8 months. Calculate…

A: Simple interest is a method of interest calculation where the principal amount remains the same for…

Q: Your goal is to accumulate $60,000 in seven years' time.  What monthly deposit must you make into a…

A: Interest rate per month = 12%/12 = 1% per month Time period = 7 years * 12 = 84

Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…

A: We know that the formula to calculate the present value is I/(1+i)n, where I is the cash flow that…

Q: (A) What values should be used for a, r, and k? k (8) How much money will Chase have in the account…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: Your bank pays an interest rate quoted as 5.0% per annum compounded semi-annually. You invest $1,000…

A: Semi-annual interest rate (r) = 5%/2 = 2.5% Number of Semi-annual compounding (n) = 5 years x 2 = 10…

Q: A bank features a savings account that has an annual percentage rate of r = 5.8% with interest…

A: (A) n=p/yt Given t=10 years (p/y)=4 (since interest is compounded quarterly)

Q: Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. The…

A: Interest rate (r) = 12% Number of compounding per year (m) = 4

Q: while at the bank, you see a brochure with two saving account options. One pays interest at 4.35%…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: answer the questions

A: 1. The computation of the EAR (effective annual rate) of each option is shown below: 10% interest…