1.How much must you deposit in an account today so that you have a balance of $21,829 at the end of 10 years if interest on the account is 10% p.a., but with quarterly compounding? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. 2. The Milken Company is offering you an investment that promises you $10,000 at the end of 15 years if you invest $ 5,889 today. What is the annual return on this investment? Compute your answer as a percent rounded to 2 decimal places. Record without a percent sign. For example, record .0848765 = 8.48765% as 8.49

Q: You are scheduled to receive $19,000 in two years. When you receive it, you will invest it for six…

A: Present value means today's value of the future value of money. It means that the present time…

Q: Assume you put $200 per month into a retirement account for 14 years, and the account has an APR of…

A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Suppose you have $60,000 in a savings account earning 2%. You would like to make equal quarterly…

A: The time value of money is a concept in finance that evaluates the worth of the securities that cash…

Q: Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much…

A: Yearly Deposit are of $5,700 Interest rate is 11% Time period is 19 years for Part(A) and 38 Years…

Q: Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that…

A: Using the Future value and NPER function in excel

Q: if you place $1100 today into an account that pays simple interest and you have $6100 dollars in the…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…

A: Here, Deposit Amount  today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…

Q: If you make monthly $500 deposits into your investment account paying 9.58% interest annually, how…

A: Interest is an amount which is received on the deposited amount for the period. It increases the…

Q: You plan to deposit $4,900 at the end of each of the next 15 years into an account paying 11.3…

A: Solution- Given that P=$4900 r=11.3% n=15 years Future value of Annuity- =P * [ (1+r)^n -1] /r

Q: Suppose you are depositing an amount today in an account that earns 5.25% interest, compounded…

A: The amount of deposit to be made today can be calculated using the Present Value Formula

Q: Your brother has asked you to help him with choosing an investment. He has OMR 5000 to invest today…

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

Q: If you deposited sum of 200 JOD at the beginning of each month for 20 Years at an annual interest…

A: There are three number of questions which has been asked by the student but as due to guideline we…

Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…

A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…

Q: Suppose you deposit $380 today, $565 in one year, and $929 in two years in an account that pays an…

A: We need to calculate future value here:It has formula, FV = PV * (1+r)^nwhere, PV is present valuer…

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 want to have $67,000 in your savings account 10 years from now, and you're prepared to make…

A: Payment per period is the regular payments made or received of an investment, while future value is…

Q: You will deposit $202 each of the next four years (the first deposit will occur one year from today,…

A: 92 COMPOUNDED ANNUALLY ROUNDED 2 DECIMAL 93 F G   94 INTEREST RATE 7.50%   95 NPER (n)  4…

Q: Imagine that you deposit \$6,000$6,000 a year, starting one year from today, for four years into a…

A: We need to use future value of ordinary annuity(payment due at end of period) formula to get money…

Q: uppose that you deposit $1,000 into a savings account that pays 8 percent.  a. If the bank compounds…

A: Future value and present value relation With annual interest rate (r), number of compounding in a…

Q: Suppose that $10,000 is deposited into a saving account that earns 6% interest, compounded annually.…

A: Present Value of deposit (PV)=$10,000 Rate of interest (i)=0.06   Future Value after 5 years=…

Q: Assume  you have secured a loan of $10,000 from a bank  which will be paid in one year. The bank has…

A: Month Instalment Interest Paid = Opening Balance  x 0.31% Principal Opening Balance Closing Balance…

Q: You have $75,000 in the bank right now. What equal annual amount (beginning one year from today) can…

A: Present value = pv = $75,000 Time = t = 13 years Interest rate = r = 8% Future value = fv = $50,000…

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…

A: The question is based on the concept of Annuity

Q: You open a bank account, making a deposit of $300 now and deposit of $1000 every other year (the…

A: Amount deposit now for 10 years = 300 Amount deposited every year from & at the end of 2nd year…

Q: Your brother has asked you to help him with choosing an investment. He has OMR 5000 to invest today…

A: Answer: Option c. 5441 OMR Solution: Given, PV = 5000 i = 4.25% n = 2 years Since, compounding is…

Q: Suppose you deposit $1,000 today in an account that pays 5% interest at the end of each year. If…

A: Here, Deposit Amount is $1,000 Interest Rate is 5%

Q: Your first deposit of $5,000 will be made today. You also plan to make four additional deposits at…

A: Present value is the current worth of the amount that is deposited in some future date at given…

Q: Suppose you put $100 into a savings account today, the account pays a nominal annual interest rate…

A: Amount deposited = $100Interest rate (compounded semi-annually) = 6%Amount withdrawn after 6 months…

Q: You are depositing $3,000 today in an account with an expected rate of return of 10%. If you deposit…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: You plan to accumulate R450,000 over a period of 12 years by making equal annual deposits in an…

A: Annuity due is a type of annuity under which payment is deposit at starting of the each period and…

Q: You invest $12000 into an account that earns 8.5 % simple interest for 30 months. What is the future…

A: The future value of the investment is the value of the investment in the future time period…

Q: You would like to have $20,000 in your account after 10 years. What must you deposit now in an…

A: Number of quarterly periods = Number of years*Frequency of compounding in a year = 10*4 = 40…

Q: If you invest $3500 for 6 months in an account that earns 8.25% annually, how much interest will you…

A: We need to use the simple interest formula below to calculate the interest.Simple interest =…

Q: You plan to deposit $3,600 each year for the next 12 years. The interest rate is 9 percent. If you…

A: Deposit = d = $3600 Time = t = 12 years Interest rate = r = 9% Present value = pv = $10,000

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…

A: Time value tells that the money received today has more value than that of receiving the same amount…

Q: Assume  you have secured a loan of $10,000 from a bank  which will be paid in one year. The bank has…

A: Interest payable = Opening Balance * Monthly interest rate

Q: If you deposit $4,000 at the end of each year into an account which earns 10.3%, how many years will…

A: The objective of this question is to find out how many years it will take for an account to reach a…

Q: how much would you have saved at the end of six years?  Round your answer to the nearest one dollar.

A: Future Value of Annuity = P x [{(1 + r)^n} - 1] / r Here, P = Periodic Deposit i.e. $46904 annually…

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 permonth for…

A: In this first we have to calculate future value FACTOR and future value after 22 years and than…

Q: The bank balance will be ​$

A: Time value of money (TVM) means that the amount of money received in the present times will have…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.