A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and interest is compound monthly. How much money must be deposited to yield P8,000 at the end of 11 months? Show your detailed solution.

Q: How much money will be in a bank account at the end of 15 years if $100 is deposi ted today and the…

A: Following details are given in the question : Deposit today (Present value) = $100 Time period = 15…

Q: How much will accumulate in three years by depositing $540 at the end of each of the next 12…

A: The future value can be compared by looking at how much money you will have in the future from the…

Q: How much would you need to deposit in an account now in order to have $6000 in the account in 10…

A: Given information Future Value = $6000 Time Period =10 years *12= 120 periods(As periods are…

Q: What is the future value of an account if $8,000 is invested at a rate of 7% compounded monthly for…

A: Future Value = P * (1 + i/n)(n x t)Where: P = Initial Invested amount i = Annual interest rate n =…

Q: the bingo bank is paying 9% interest compounded monthly .a) if you deposit 1000 at the beginning of…

A: The future value of annuity due is the total future value of each cash flow which is made at the…

Q: How much money will be in the bank account at the end of 4 years if $5000 is deposited at the end of…

A: Future value: It implies to the value that an investment will carry at some point of time in future…

Q: How much would you need to deposit in an account each month in order to have $10,000 in the account…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: 2. What is the future worth of P600 deposited at the end of every quarter for 4 years if the…

A: The value of an asset at a specific date is referred to as its future value. It is the present value…

Q: You have a bank account that is currently worth 10,000. How long will it take the bank account to be…

A: The declared or promoted interest rate on a financial instrument, like a savings account or loan, is…

Q: Assume you placed RM25,000 in a savings account that pays an annual compound interest of 8% for 3…

A: Solution: With the Time value of money concept (Future value) we will be calculating amount of money…

Q: If $27,800 is invested in an account that earns interest at an annual rate of 2.8%, compounded…

A: We need to use future value continuous compounding formula below to calculate number of years.A =…

Q: Use logarithms to solve the problem. How long will it take $11,000 to grow to $19,000 if the…

A: Compound = monthly = 12 Present value = pv = $11,000 Future value = fv = $19,000 Interest rate = r =…

Q: An investment account returns 6.29% annually. You want to withdraw $ 10,000 each year for the next…

A: The present value of an annuity is the value today of a series of equal payments made at fixed…

Q: If P1,000 becomes P1,811.36 after 5 years when invested at an unknown rate of interest compounded…

A: Introduction The term "nominal interest rate" refers to the interest rate prior accounting for…

Q: How much do you need to invest in an account earning an annual interest rate of 3.493% compounded…

A: The present value of an investment refers to the sum amount of money that will be required today in…

Q: You deposit $1000 into an account that pays 10% per year, compounded monthly. How much money will…

A: STEP 1 Compound interest simply indicates that the interest paid on a savings account, loan, or…

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,500 per year with the…

A: Amount to be accumulated = $10,000Annual deposits = $1,500Interest rate = 7%To find: Number of years…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. An…

A: First, we need to convert the interest rate compounding frequency from continuous to annual because…

Q: A sum of money is deposited now in a savings account. The effective annual interest rate is 12% and…

A: There are various types of Bank Accounts, one of the basic and most commonly used is Saving's…

Q: If you were to make a deposit of $5,000 today in an investment account expected to pay 5% pa.…

A: The question is related to Time Value of money.When interest is calculated on total of previously…

Q: You will deposit $2,000 per year for the next 10 years. Then, you will start drawing money out of…

A: Future value is the value of the present cash flows in future. Investor will deposit same equal…

Q: Ian deposits $1200 into a savings account that earns 4% per year, simple interest. a) Write an…

A: A savings account is an account for which we get interest for our deposit in the bank. This is the…

Q: You deposit $4000 in an account earning 3% interest compounded monthly. How much will you have in…

A: The amount after 10 years will be the future value of the initial deposit.

Q: You are considering investing in a savings account that compounds interest quarterly. The bank…

A: 1. Identify the variables:Nominal interest rate (annual) = 4% = 0.04 (in decimal form)Compounding…

Q: f 10,000 is deposited in the bank annually with a 12% per year interest rate. how long will the…

A: Annual Deposit = 10,000 Interest Rate = 12% Future Value Required = 1,000,000

Q: Suppose you want deposit $200 each month into an account earning 3.5% APR compounded monthly. a)…

A: Annuity is a fixed periodic payment made over a period of time, leading to the accrual of a definite…

Q: A certain sum of money will be deposited in a savings account that pays interest at the rate of 6%…

A: The following information given in the question: Rate of interest : 6% compounded annually (I)…

Q: if $204 is deposited in a savings account at the beginning of each year for 12 years and the account…

A: The given problem can be solved using FV function in excel. FV function computes amount balance in…

Q: You deposit $4000 in an account earning 5% interest compounded monthly. How much will you have in…

A: Given: Interest rate = 5% Present value = $4,000 Period = 10 years

Q: How much money must be deposited at the end of each quarter if the objective is to accumulate…

A: Working note:

Q: How much money deposited at the end of each year in a savings account that pays 9 % per year ,…

A: An annuity is a series of regular payments made at regular intervals. It earns interest as and when…

Q: cashflow diagram.

A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…

Q: An ambitious saver plans to deposit $1,000 in a bank account starting 1 quarter from now and wants…

A: Future value : Future value is the value of a current asset at a future date based on a projected…

Q: You deposit $5000 each year into an account earning 6.8% interest. How much will you have in the…

A: Given: Yearly deposit = $5000 Interest = 6.8% annually Time =15 years

Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…

A: The question is based on the concept of Annuity

Q: You put $1,000 into a savings account today that offers a 55% APR with semi-annual compounding…

A: GIVEN, PV = $1000 N = 2 M = 2 (SEMI ANNUAL) R=55%