4. Deposits of P15,000.00, P18,000.00 and P25,000.00 were made in a savings account 10 years, 6 years, and 3 years ago, respectively. Determine the accumulate amount in the account today if a withdrawal of P20,000.00 and P10,000.00 were made 4 and 5 years ago, respectively. The applied interest rate is 8% compounded continuously.

4. Deposits of P15,000.00, P18,000.00 and P25,000.00 were made in a savings account 10 years, 6 years, and 3 years ago, respectively. Determine the accumulate amount in the account today if a withdrawal of P20,000.00 and P10,000.00 were made 4 and 5 years ago, respectively. The applied interest rate is 8% compounded continuously.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

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. $4,356.00
Consider the following accumulated amounts.1. A deposit of P100,000 at an annual simple interest rate of 5% accumulates to A at the end of 5 years.2. A deposit of P100,000 at an annual simple interest rate of 6% accumulates to B at the end of 4 years.3. A deposit of P100,000 at an annual simple discount rate of 3% accumulates to C at the end of 8 years.4. A deposit of P90,000 at an annual simple discount rate of 5% accumulates to D at the end of 5 years.5. A deposit of P90,000 at an annual simple discount rate of 4% accumulates to E at the end of 6 years.Which deposit accumulates to the biggest amount: A, B, C, D or E?
Given below are the future value factors for 1 at 11% for one to five periods. Interest is compounded annually at 11%. Periods Future Value of 1 at 11% 1. 1.110 2. 1.232 1.368 1.518 5 1.685 What amount should be deposited in a bank account today to grow to $27400 three years from today? $27400 x 1.368 x 3 $27400 + 1.368 $27400 + 1.110 x 3 $27400 x 1.368 3. 4.
When interest is compounded continuously, the amount of money Increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $9000 is deposited in a savings account drawing 5% annual interest compounded continuously. (Round your answer to the nearest cent.) $ 13698 4 X (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years (c) Use a calculator to compare the amount obtained in part (a) with the amount S= 9000 1 + S = $ 9000(1+(0.0525))** 8(4) that is accrued when interest is compounded quarterly (Round your answer to the nearest cent.)
3. Convert 16% compounded monthly is equal to an effective interest rate. 4. Find the accumulated amount of ₱ 1000 after 5 years when deposited in a bank at rate of 16% compounded monthly
Kk.218.
8. An amount of P 5000 is deposited in a bank paying an annual interest rate of 3.1% compounded continuously. Find the balance after 3 years. A. P 8754.31 B. P 4857.31 C. P 7584.31 D. P 5487.31
Bank 1 is offering interest rate of 8.4% (compound semiannually)on fixed deposits. Bank 2 is offering int. Rate of 8.3% (monthly) in fixed deposite. An investor invested amount 15000 for 5 years. What is accumulated amount at the five years
5. A deposit of $2450 is made into an account drawing 4.26% interest compounded quarterly. Find the future value 14 years after the deposit and find the amount of compound interest earned.
What amount must be deposited at the bank today to grow to $600 in 4 years, assuming 10% interest compounded semiannually? Please identify which table you used.
Subject:
An amount was borrowed from a bank at a simple interest rate of 12.41% and paid after 5 years and 7 months. What is the discount rate? If the paid amount is P33,874, how much money was borrowed? If the total accumulated interest is P10,845, what amount was paid?

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