7. You deposit R1 000 annually at the beginning of each of five years into a savings account paying 7% annual interest. The amount of money at the end of the period will be: 1. R1 402.55 2. R6 153.29 3. R5 750.74 4. R4 100.20

Q: ird is trying to determine the interest rate he is receiving on an annuity that he initially…

A: Annuities are uniform annual payments that are paid annually out of money that is deposited…

Q: 7. What is the present worth of a year annuity paying P 3,000.00 at the end of each year, with…

A: The time value of money is the financial concept that is used for estimating and determining the…

Q: Future Value Calculation: step-by-step calculation You deposit $500 at the beginning of each year…

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

Q: Assume you deposit $1,000 today in an account that pays 8 percent interest (compounded annually).…

A: Given: Present value = $1,000 Years = 4 Interest rate = 8%

Q: You deposit $725 today in a savings account that pays 6% interest, compounded annually. How much…

A: Future value, or FV for short, is a term used in finance to describe the estimated monetary value of…

Q: What principal you have to deposit in a 4.5% savings account compounded continuously in order to…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If you make quarterly deposits of $425.00 into an ordinary annuity earning an annual interest rate…

A: Annuity is the series of equal cash payments over the period.

Q: Construct the Annuity Savings Model that satisfies: (a) The initial balance is $800, and each month…

A: Annuity Savings Model Balance at end of month = [Balance at beginning of month T-1 * (1+Interest%) +…

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…

Q: You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate…

A: The given problem is calculated using Excel. Interest amount = Opening balance X interest rate…

Q: If you deposit RM15,00O in an account earning 18% with quartely compounding how much would you have…

A: Using the future value function in excel

Q: Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years.…

A: Note: The Answer, given for part b is mentioned incorrect, so we are solving the correct one for you…

Q: Suppose you have $2,200 and plan to purchase a 10-year certificate of deposit (CD) that pays 10.9%…

A: b. $6,190.68 Explanation:We can calculate the future value of the CD using the compound interest…

Q: How much is accumulated in each of the savings plans over two years? a. Deposit €1100 today at 15…

A: Given: Particulars 15% 12% Deposit € 1,100 € 700 Years 2 2

Q: How much will you have saved at the end of 15 years.

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

Q: For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years.…

A: The annuity is the periodic payment received in each period. The present value is the discounted…

Q: Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: Suppose you borrowed $3,000 at a rate of 8.8% and must repay it in 4 equal installments at the end…

A: Present Value = pv = $3000Rate of Retunr = r = 8.8%Number of Payment = n = 4

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:

A: Future value = Present value(1 + Rate)^Time

Q: If you invest $8,000 at the end of every year for nine years at an interest rate of 8%, the balance…

A: A present asset's future value, abbreviated as FV, is the value that an asset is expected to have at…

Q: Hannah deposits OMR 500 in an account earning 5% compounded half yearly. What will be the interest…

A: The answer is option (b.) [OMR 109.20] Refer step 2 for explanation

Q: If someone borrow $4000 with interest rate 4% and has to return the loan with equal payment in 4…

A: loan repayments are usually monthly EMIs or annual payments. It consists of interest and principal…

Q: If $16800 is deposited in a savings account today, what amount will be available three years from…

A: Future value is an estimate of the future cash flows ​​that may be received at a future date,…

Q: if P20,879 is deposited each year for 8 years at an interest rate of 10.257% compounded bi-monthly,…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: Robert borrowed $28,372.63 from the bank, which needs to be paid with the amount of $404.21 at the…

A: Under a loan arrangement, the money borrowed can be repaid in regular payments over a period of…

Q: ____ value refers to the total value of the deposit after 7 years. Select one: a. principal b.…

A: The term Principal refers to amount deposited today. The term compound refers to ability of…

Q: If you wish to accumulate $205,000 in 6 years, how much must you deposit today in an account that…

A: Future value (FV) = $205,000 Interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25% Period =…

Q: 11. At the end of each of the next 6 years you will receive cash flows of $12,000. If the…

A: We need to use present value of ordinary annuity formula below to calculate value of annuity.  where…

Q: 2 to find how much should be deposited now at 6% interest, compounded monthly, to yield an annuity…

A: Since payment is to be made at the beginning of each month, therefore amount to be deposited today =…

Q: If you put $ 8000 in a bank every three years forever (on perpetual), what is the present value at…

A: Present value of perpetuity = C/r C is perpetual cash flows and r is interest rate the time period…

Q: Q2- WHAT IS THE FUTURE VALUE OF 10000 DOPOSITED TODAY IN AN ACCOUNT THAT WILL EARN 6% YEARLY AT THE…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: How much should you deposit in an account so that you can withdraw $5300 every year for the next 18…

A: Using excel PV function

Q: 4. The amount that must be set aside today to enable annual payments of $40,000 each for 5 years,…

A: Annuity is the series of equal cash payments over the period.

Q: 1. Consider the annuity of $ (F+2) per year for 5 years paid at the beginning of every year. If the…

A: Annunity per year is $(F+2) F = 2 Time Period is 5 years,  Payment made at the beginiong of every…

Q: If you deposit$5,000in a 5 -year certificate of deposit earning2.0%per year, how much will it be…

A: This question provides information regarding the evaluation of an investment of $5,000 into a five…

Q: 7) a. b. C. d. How much more is a perpetuity of $8,000 worth than an annuity of the same amount for…

A: Annuity is a series of payments made at equal intervals of time. Perpetuity is an annuity having…

Q: You want to have GH¢ 50,000 in your savings account five years from now, and you’re prepared to make…

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: If you would like to have $ 10,000 after 8 years, how much money should you deposit now if the…

A: Given:

Q: Suppose you borrowed $35,000 at a rate of 8.1% and must repay it in 4 equal installments at the end…

A: Loan amount (LV) = $35000 Interest rate (i) = 8.1% Number of annual payments (n) = 4

Q: nce at the end of each year. plete the balance sheet. Period 1 2 3 4 Amount $1000.00 $1000.00…

A: Interest amount using an ordinary annuity can be calculated by subtracting principal by the end of…

Q: An annuity has a deposit of $50 per month and a value of $10,000 after 8 years. What interest rate…

A: The idea of the time value of money (TVM) states that money you have now is incredibly valuable you…