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: 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 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: Crane Telecommunications Corp. has made an investment in another company that will guarantee it a…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A sinking fund is established to discharge a debt of $70,000 in 15 years. If deposits are made at…

A: Compound = Semiannually = 2Future Value = fv = $70,000Time = t = 15 * 2 = 30Interest Rate = r = 4 /…

Q: An account pays interest at 1.5% per month. If you deposit $5000 at the beginning of this year, how…

A: Future Value = Present Value * (1+rate)^n Where, Present value =$5000 rate = 1.5% or 0.015 n = no of…

Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Determine the value at the end of five years of a $7,000 investment (today) in a bank certificate of…

A: Future Value = Present Value * (1+rate)^n Where, Rate = 9%/2 = 0.045 n = no. of compounding period =…

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: What is the nominal annual rate of interest compounded semi-annually if deposits of $254 made each…

A: Information Provided: Monthly deposit = $254 Future value = $13,000 Period of deposit = 4 years

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: What is the amount of 10 equal annual deposits that can provide five annual withdrawals? Assume that…

A: The time value of money is a concept in finance that considers the effect of compounding to evaluate…

Q: Mario and Luigi each own half of a mushroom pizza parlor. They want to expand by purchasing a second…

A: Valuation of the entity is defined by the round of funding. It is determined by how much % of shares…

Q: Recently, a bank offered six-month CDs (Certificate of Deposit) at 6.0% compounded monthly. (Round…

A: Original Value = $1000 Compounding Frequency = 12 Interest Rate = 6% Period = 6 months    a) Annual…

Q: A regular deposit of $120 is made at the beginning of each year for 20 years. Simple interest is…

A: Simple interest is the interest paid or computed only on the principal amount of money. It odes not…

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: A bank quotes you a nominal interest rate of 12%, compounded monthly, on a savings account. What is…

A: Monthly nominal interest rate (r) = 0.01 (i.e. 0.12 / 12)Number of compounding in a year (n) = 12…

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: 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: hat is the discounted value of deposits of $250.00 made at the beginning of ery three months for…

A: Here we will use the concept of time value of money. As per the concept of time value of money it is…

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…