7. Assume that today you made an initial deposit in the amount of $16,000 into a savings account that pays 4.25% simple interest annually. Assuming no withdrawals or additional deposits, what will be the balance of this account in 10 years?

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A: Simple interest is an interest that is calculated on the initial investment.

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A: We need to calculate future value of $1,000 deposited today at 6% simple interest after 5 years.…

Q: You need to turn $11,827 dollars into $18,864 dollars in 7 years.  Assuming you make no extra…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: Q2): A person deposits $28,500 into a savings account that earns 5% interest per year. At the end of…

A: Given That: deposited money(P)= $28500 Interest rate (r)=5%=0.05 per year Amount wants to be…

Q: You have just remembered that four years ago you placed $1,000 in a bank account. If the bank was…

A: PV x (1+r)n=FV

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A: Interest is an additional payment which is received on amount deposited by the depositor. At…

Q: You deposit one dollar into a Chase savings account earning 6% interest. Fifteen years later you…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: ou make quarterly deposits of uch interest did you earn in those 9 years? ow much is in the account…

A: As there is more compounding the more interest is being accumulated and more is future value of…

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A:

Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…

A: Computation:

Q: You plan to deposit into your bank account $100 two years from now, $200 three years from now and…

A: A bank provides interest on the amount deposited or invested. Therefore, the withdrawal will consist…

Q: Suppose that you had deposited $125 in a bank account for each of the last 5 years. What annual…

A: Amount deposited per year is $125 Time period is 5 years Amount in account is $758.92 To Find:…

Q: Suppose that today you start a savings account with a deposit of $75, and continue to invest $75 at…

A: Future value  The value of a current asset at some point in the future, based on an estimated growth…

Q: Suppose you deposit $1,098.00 into an account 5.00 years from today. Exactly 14.00 years from today…

A: Following formula is used to compute account's interest rate account's interest rate = -1where,n =…

Q: If $7,128 is deposited into an account that earns simple interest and it takes 9 years to earn…

A: Interest earned is 1796.26 No of years =9 Annual interest is = 1796.26/9 = 199.58

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: If you make monthly deposits of $2,960 into your savings account for the next 25 years, what return…

A: Compound = Monthly = 12Payment = p = $2960Time = t = 25 * 12 = 300Future Value = fv =…

Q: If you deposit $3,500 monthly into a savings account which earns 4.25% interest rate compounded…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: 27. You hope to accumulate an account balance of $20,000 in 4 years by making a single deposit…

A: We need to calculate the amount to be deposited today - present value (PV)Future Value (FV) =…

Q: You need to have $50,000 in a bank account 28 years from today. Assume APR is 12% and monthly…

A: The present value is computed by multiplying the future value with the present value factor. If a…

Q: If you deposit $25,000 per year for 13 years (each deposit is made at the end of each year) in an…

A: The question is based on the concept time value of money. The future value is defined as the value…