5A high-interest savings account has a balance of $[A]. After (B) years of accumulating interest at (D)% compounded quarterly, payments of ${C} were withdrawn at the beginning of every six months (at the same interest rate). Forhow long (in months) will it take to liquidate the account? Use the partial timeline below to help you!{A} $29,5501 of(B) 3(c) $7,784{D} 5.23%today{B}+---{A}N1 = ?FV1${C}PV2N2 = ?N-1NIY = ?CY = ?${C}${C}${C}FV2Read these instructions/notes carefully.• Fill in the blanks below with each correct answer• Use appropriate rounding rules at each step• Units are already provided for you (do not enter units)• Do not enter negative values or comma separators (for example, enter 19000 and not 19,000)• Note which values/arrows are labeled FVI, FV2, etc.FVI-SPV1-SFV2-$PV2-$M-IY2-CY1-PY1-CY2-PY2-PMT1-0PMT2-$N1-N2-years-months-

Step-by-step analysis of the answers:A) FV1 = $29,550Step 1: Calculate the monthly interest…

Answered: 5 A high-interest savings account has a…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 8CE

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The balance of an interest-bearing account can be modeled by an exponential equation. For example, consider an initial deposit of $10000 at an annual interest rate of 5%. The interest earned each year is deposited into the account at the end of the year. A. Assuming that no withdrawals or deposits are made, write an equation that models the account balance after x years. Your answer B. What is the account balance at the end of the 7 years? Your answer C. Create a graph that shows the increase in the account balance over the next 15 years, including your initial deposit. Your answer D. Using the graph, estimate how many years it will take for the initial deposit to double. Your answer E. If you deposited $5000O in an account of this type, what would the account balance be when you are 50 years old assuming that you are 20 years of age right now? Your answer OCT 16
Solve it now three subparts a, b, and c.
5.
4. You want to deposit $600 in a savings account. Account A earns 3.5% simple interest per year. Account B earns 3.3% interest compounded annually. a. Which account should you choose if you invest your money for 3 years? 6 years? Explain. b. After how many years is the balance in Account B greater than the balance in Account A? c. After how many years is the difference between the account balances greater than $5?
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 5.5% compounded monthly Click the icon to view some finance formulas. Time 11 years b. $ of the $200,000 comes from deposits and (Use the answer from part (a) to find these answers. Financial Goal $200,000 a. The periodic deposit is S (Do not round until the final answer. Then round up to the nearest dollar as needed.) 2 comes from interest. Round to the nearest dollar as needed.)
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a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of every three 2.5% compounded quarterly months Click the icon to view some finance formulas. Time 4 years Financial Goal $20,000 CAE a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.) b. $ of the $20,000 comes from deposits and $comes from interest. (Use the answer from part (a) to find these answers. Round to the nearest dollar as needed.)
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At the end of two years, what will be the balance in a savings account paying 6% annually if $10,000 is deposited today? The future value of one at 6% for one period is 1.06. a. $10,000 b. $10,600 c. $11,200 d. $11,236
Assuming a 5% (0.05) interest rate, $500 invested today in a savings account today will be worth $525 in one year. What will that amount be in 2 and 3 years, and what is the total interest you will earn at the end of three years. Refer to the video in the information page for assistance in calculating simple interest. Year 2: $445.78 Year 3: $335.29 Total Interest: $98.75 Year 2: $551.25 Year 3: $578.81 Total Interest: $78.31 Year 2: $114.49 Year 3: $122.50 Total Interest: $22.50 Year 2: $222.70
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
Question 1 You borrow $50,000 for 5 years. This is an amortized load, meaning that payments are the same each month, and the loan is fully paid off with final payment. The quoted interest rate (or APR) is 12% per year. What is the beginning balance, Payment, Interest, Principal and Ending Balance in months 10 and 25? Enter all the necessary information in an Excel spreadsheet as the example in class, by entering the right formulas in each column. Also copy and paste the final table from Excel in a word document and attach it with your answer.

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