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 he money is allowed to accumulate, how much money will the student have after 14 years?

Q: On Lorenzo first birthday his parents deposited 7000 into a savings account that earns a fixed rate…

A: Data given: Amount deposited on 1st birthday=$7000  (Assumed currency=$) Rate=4% (compounded…

Q: Willie deposits a fixed monthly amount into an annuity account for his child’s college fund. He…

A: Here, to calculate the monthly contribution we have to use the formula of future value of annuity.…

Q: David invests $300 into an account with a 2.3% interest rate that is compounded semiannually. How…

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

Q: Your parents start saving for your sister's college education. She will begin college at age 18 and…

A: Present value and future value is computed by discounting or compounding an amount. Future value is…

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: George is a 22 year old college student who wants to start saving for retirement. He decides to…

A: Future value refers to the value of current asset at some future date affected by interest or…

Q: Alex estimates that he will have $47,500 in student loans by the time he graduates. The interest…

A: Here, Present Value is $47,500 Interest Rate is 7.2% Therefore, the Monthly Interest Rate is : Time…

Q: Cyrus deposits a fixed monthly amount into an annuity account for his child's college fund. He…

A: Interest earned refers to an amount that is being earned by the investors over the amount of…

Q: Shiraz deposited $500 at the end of each year for 18 years in a savings account. If the account paid…

A: Using the Future value function in excel

Q: Julie deposits $600 at the end of each month into her savings account. If the amount earns 5.25%…

A: In finance, the term annuity depicts a sequence of cash flows over a specific time duration. Each…

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: ou are saving for the college education of your two children. They are two years apart in age; one…

A: Present value is the equivalent today of the future money required based on time and interest rate…

Q: At the beginning of Gabe’s freshman year, His favorite uncle deposit ₱10,000 into a four-year bank…

A: Amount that will be in the account after four years can be calculated using following formula FV =…

Q: How much money can they expect to withdraw?

A: Future value of ordinary annuity refers to the sum total value of all deposits made periodically at…

Q: Charles has just taken on the conditions of the loan, he must make payments of $1,200 per year for…

A: Amount of loan is the present value of the annual payments of the loan based on the time and…

Q: James deposits $266.40 each month into an annuity account for his child's college fund in order to…

A: Interest earned refers to an amount accumulated as earnings over the investment value of the banks…

Q: A father wants to set aside money for his 5-year-old son's future college education. Money can be…

A: Deposit: It is a saving which one earns during his or her earning period and saves the same amount…

Q: Kent owes $38000 with an interest rate of 4% in the student loans. If the loan will be paid after 2…

A: If the loan is a bullet loan that has to be paid at the end in a single payment then, the interest…

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: Willie deposits a fixed monthly amount into an annuity account for his child's college fund. He…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = $75000 P =…

Q: A child age 3 is given $20,000. The amount is put into savings account which pays 4% compounded…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Harold starts saving in order to fund his children's education. He decides to deposit $120 each…

A: The value of an asset at a future date is called future value.

Q: Caesar is paid monthly and deposits $300 each pay period into a savings account. Money invested in…

A: Variables in the question:PMT=Monthly deposit=$300Rate=4% (compounded monthly)N=7 yearsWorking…

Q: nim to receive $3000 each month for 5 years, beginning 18 4.2% p invest the money today in an…

A: Here we will use the concept of time value of money to answer the questions.

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: Frances plans to save money for a down payment on a house using an investment account that pays an…

A: An annuity is a stream of cash flows occurring on a periodic basis. The amount is usually fixed in…

Q: Madison is planning to save for his newborn daughter’s college tuition, to be paid in 18 years. The…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Frank plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

Q: Joe borrowed $100,000 from a local bank, which charges him an interest rate of 7% per year. If Joe…

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

Q: Milo borrows $5.000 from an institution that charges 8.5% interest per year. How much more will Milo…

A: Loan are amount borrowed from the financial institution and is the amount charged above the loan is…

Q: am wishes to have $500,000 in his retirement account when he retires, in 30 years . If he can earn…

A: A retirement account refers to a savings account in which an individual saves an amount for the…

Q: A man wants to set up a 529 college savings account for his granddaughter. How much would he need to…

A: An annuity is a contract where a fixed amount is paid periodically. It is used to help investors…

Q: additional deposits or withdrawals for the accounts. Which statement is true concerning Sebastian’s…

A: the correct option is (c)

Q: 2. A child deposits his birthday money of $350 into an account that pays 5.6% interest compounded…

A: Future Value of annuity = P  [(1+r)^n - 1]/ r

Q: Imelda opens a savings account with $12,000, which pays an annual interest rate of 7.8%. If she…

A: Future value of the amount that is invested and also amount of interest accumulated over the period…

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…

Q: Tameshia deposits $5500 in her retirement account every year. If her account pays an average of 6%…

A: We get future value of depositsUse FV function in excel Type =FV and press tab key. Type 6%,  (this…

Q: Shelly deposits the $2000 she got as a birthday gift from her grandmother into an account earning…

A: The company would be considering the value for future through the compounding of interest rates over…

Q: essica wants to accumulate $13,000 by the end of 6 years in a special bank account, which she had…

A: We need to use future value of ordinary  annuity  formula to calculate monthly payment PMT =…

Q: e has $1,500 in credit card debt but pays it in full every month from cash flow. He also pays her…

A: Net worth is amount of ownership or may say equity and increase in net worth means how much is…