Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year, compounded annually. If all of the money is allowed to accumulate, how much money will the student have after 14 years?

Q: Stephen has $11,200 in the bank. The account will earn 2.8% in simple interest for the next 5 years.…

A: Simple interest is the method used to charge the interest on the principal amount for a given period…

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: Juan decided to start saving for college.  He deposited $500 into an account that earns 4% simple…

A: Amount deposited = $500 Simple Interest = 4%

Q: In order to pay for college, the parents of a child invest $10,000 in a bond that pays 6%…

A: Investment (P) = $ 10,000 Interest rate= 6% Semi annual interest rate (r) = 6%/2 = 3% Period = 20…

Q: Juan decided to start savings for college.  He deposited $500 into an account which earns 4% simple…

A: Simple interest is the interest that is determined on the original deposit made to the account. In…

Q: In order to pay for college, the parents of a child invest $15,000 in a bond that pays 7% interest…

A: Compound = Semiannually = 2Present Value = pv = $15,000Interest rate = r = 7 / 2 = 3.5%Time = t = 21…

Q: Abe will need $12,000 per year for four years to pay for tuition. How much will Abe's parents have…

A: The present worth of the future estimated spending each year will be found by using the PV formula…

Q: et's parents decided to pay a lump sum payment today of $135000 so she will be able to make 4 years…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Future value is the value of the future cash flows being compounded at a predefined rate of interest…

Q: Grandma gave you 600 for your graduation. You deposit it into an account that earns 4% annually.…

A: Given:Principal amount (P)=600Rate of interest (r) =4% annually.It is assumed that the interest is…

Q: What semi-annual deposits does Adrian have to make?

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?

A: Concept: The interest is the product of principal, time period and number of years that is divided…

Q: Willie Wilson plans to borrow $21, 185 at the beginning of each of his 4 years of college. He will…

A: Step 1: Given Value for Calculation Present Value of Borrowing = pv = $21,185Time = t = 4…

Q: John deposits $1500 into a savings account earning simple interest at 2.19% annually. How much will…

A: Calculation of actual amount in account in future: Answer: John will have $1,582.13 in his account…

Q: John contributes $5,000 per month into an account. How much will he have in the account after 25…

A: In the given question we require to calculate the future value of account after 25 years is john…

Q: What principal must be deposited by the parents when their child is born in order to have

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: John and Randy are competing to see who can accumulate more money. They are both given $100 to…

A: Time Value of Money states that a dollar earned today has more value than a dollar some time in the…