A financial institution offers a nominal interest rate of 12% while compounding its accounts quarterly. For how many years must quarterly deposits of $1,000 be made into this account so that $42,931 will be accumulated at the end of this time?

Q: Suppose that you made equal annual deposits starting from now followed by another at the end of…

A: Assuming Annual Deposit = 1000 Interest Rate = 8% Compounded Annually Deposits: Year Deposit 0…

Q: What weekly deposits should be made into a savings account paying interest at 8.9% / year compounded…

A: Formula used in calculation: Where,A = Weekly depositsFVA = Future value of the annuity (or…

Q: Idaho International Inc. borrows $86,600 from a bank at 3.08% compounded semi-annually for 7 years…

A: Here,Compound = Semiannually = 2Present Value = pv = $86,600Interest Rate = r = 3.08 / 2 = 1.54%Time…

Q: The bank states they will charge you annual interest of 20% APR and interest is calculated…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals when a first…

A: The flow of payments which are made at regular interval of time are termed as annuity when amount is…

Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4% Semi annual deposit (P) = $ 900…

Q: A debt of $5600 is repaid in equal monthly instalments over three years. Interest is 7.3% compounded…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: A bank charges Money Co. an interest rate of 12% compounded quarterly on its line of credit. If the…

A: Interest rate on line of credit = 12%Increase in effective rate = 2.80%Interest on deposits = 5.19%…

Q: An initial deposit of $8500 is made into an account now, and a second deposit of $16000 is made into…

A: The future value of any deposits is the compounded value of the deposits made in the specified time…

Q: Your bank pays 4% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Compounding interest semiannually indicates that the principle of a loan or investment includes the…

Q: financial institution is offering a six-year term deposit that will pay 7% per annum compounded…

A: 1) Value at end of 5 years  Solved using Financial Calculator  PV = -125,000 I/Y = 7/4 = 1.75 N = 5…

Q: You deposit 2,000 in an account that pays 7% interest compounded semiannually.after two years the…

A: The concept of time value of money will be used here. Money deposited today gets computed and hence…

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals? A…

A: a) Working note:

Q: What is the accumulated value of deposits of $1020.00 made at the end of every six months for three…

A: Accumulated deposits include the amount deposited and compounding interest accumulated over the…

Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: If the bank is paying 8% interest compounded quarterly, how much must you deposit today in your…

A: The formula to calculate the present value of future cash inflow is C/(1+r)n, where C is the cash…

Q: Bank A pays 11.50% annual interest, compounded quarterly, on its savings accounts. Bank B wants to…

A: Effective rate of interest can be calculated by using this equation  Effective rate =(1+i/m)m -1…

Q: What is the accumulated value of periodic deposits of $40 at the beginning of every quarter for 22…

A: Each deposit (P)=40 Number of quarters (n)= 22 years*4 (quarter in year)= 88 Rate per quarter (I)=…

Q: A loan of $12,000 is repaid by payments of at the end of every three months Interest is 9% $571

A:

Q: A $1000 deposit in an account earns interest at an annual nominal rate of 8.00%. Interest is…

A: Future value is the accumulated value of a sum of money deposited for a specified period of time at…

Q: Your bank pays 4% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Future value of annuity due factor (r, n) = Future value of ordinary annuity factor (r, n) * (1+r) r…

Q: An initial deposit of $9000 is made into an account now, and a second deposit of $21000 is made into…

A: Compounding frequency is the number of times a sum of money earns a quoted nominal interest in a…

Q: A mortgage of $38,000 is repaid by making payments of $270 at the end of each month for 13 years.…

A:

Q: It is necessary to invest a Term Certificate of Deposit with the amount of $ 500,000 for a term of…

A: Certificate of Deposit - It is Issued by banks for a specific term in return a rate of interest. It…

Q: how, secol deposit ears. During the first 10 years, the account earns interest quoted at 10 years…

A: In this future value of investment is to be calcualted.

Q: What is the accumulated value of periodic deposits of $50 at the beginning of every six months for…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: Bank A pays 6% simple interest annually on its investment accounts. If Bank B pays interest on its…

A: Bank A: Simple Interest Rate (r) = 6% or 0.06 (Annually)Time Period (t) = 10 years…

Q: A bank pays a stated annual interest rate of 8 percent. What is the effective annual rate using the…

A: We require to compute the Effective annual rate in this question using monthly compounding.

Q: What is the accumulated value of periodic deposits of $40 at the beginning of every month for 17…

A: This is the case of an annuity due. An annuity due is that annuity where the cash flows occur at the…

Q: An amount of $14,000 is borrowed from the bank at an annual interest rate of 11%. a. Calculate the…

A: Here, Borrowed Amount is $14,000 Interest Rate is 11% Time Period is 4 years

Q: De Lima Enterprise plans to borrow 1,000,000 for eight years at 9% with a bank term loan.The bank…

A: Here in this case , to calculate the annual installment we have to use the following formula…

Q: Answer the subquestions below: a. Mr. Formento pays at the end of every month for a loan that…

A:

Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: The bank is offering to the public their savings account scheme that pays 9.84% compounded annually.…

A: Annual rate (r) = 9.84% compounded annually Let the quarterly compounded rate = i Number of…

Q: a fixed term deposit investment account with an interest rate of 6.5% per annum compounding…

A: Effective interest rate is the interest rate after considering the impact of compounding on the…

Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…

A: Future Value of Annuity Due refers to the concept which dictates the compounded value of a sum of…