An amount of 1200 per year is to be paid into an account each for the next five years. Using an interest rate of 12 % determine the total amount the account will have at the end of 5th year. Deposit made at the end of each year with interest compounded monthly

Q: e future value and the interest earned

A: Future value refers to the amount of the current asset at some future date based on the assumption…

Q: Assume $300 is deposited every three years into an account earning an annual effective interest rate…

A: A sum of money is worth more now than it will be at a later time due to its potential for profits in…

Q: w much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in excel. FV function computes  future value for…

Q: The future value is $

A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n  - 1) /interest…

Q: Find the future value of each deposit if the account pays (a) simple interest, and (b) interest…

A: Future value is the value of current cashflow compounded at specified rate to future date.

Q: You deposit $7,000 into an account earning interest at a 7% APR.  You keep the money in the account…

A: Initial deposit = $7,000 Interest rate = 0.07 or 7% Period = 5 years Money in account at the end of…

Q: Find the present value of the annuity that will pay $850 every month for 3 years from an account…

A: To calculate the present value we will use the below formula   Present value = P*[1-(1+r)-n]/r Where…

Q: Find the compound amount for the following deposit. $16,000 at 5% compounded quarterly for 10 years.…

A: The future value (FV) of an investment is the value of the investment at a future point in time,…

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: Calculate the amount of money that must be deposited at the end of every three months into an…

A: Quarterly deposit refers to an amount that is deposited every quarter for the purpose of saving for…

Q: Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded monthly.

A: Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded…

Q: final amount of money in the account if $1200 is deposited at

A: Compounding quarterly can be considered as the interest amount which is earned quarterly on an…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In this we need to find out monthly payment required for sinking fund.

Q: A bank makes a loan of $10,000. The loan will be paid back after 10 years with yearly payments of…

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Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…

A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…

Q: You have a financial goal of $140,000. The rate is 3% compounded annually. The time is 16 years.…

A: Formula to calculate annual periodic deposit Annuity=FV *r[(1+r)n-1] Where, FV = Future value r =…

Q: You decide to deposit $103 monthly in a 2.98% annual interest bearing account over the next 8 years.…

A: Gross amount placed in the account is simply the sum of all the payments made in the account.

Q: Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest…

A: Calculation of future value of annuity: Answer: Future value of annuity is $20,724.67

Q: In three years, a person will begin making quarterly deposits of $45 in an account that pays 10%;…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: A monthly deposit of $300 is put into an account earning 5% interest compounded monthly. Round to…

A: Solution:- When an equal amount is depsited each period at end of period, it is called ordinary…

Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment are…

A: Annuity refers to a stream of constant cash flows occurring at fixed intervals like monthly,…

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: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

Q: The stated interest rate on your account is 8% interest, compounded monthly if you deposit $50 each…

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

Q: A payment of $4,500 was made into an account at the end of every 3 months for 12 years. a. If the…

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

Q: Find out how much you should deposit now at 9% interest, compounded annually, to yield an annuity…

A: Present value = ( a / r) * { 1 - 1 / (1 + r ) ^ n }

Q: Find the accumulated value of an annuity due of $500 payable at the beginning of every month for…

A: In annuity due, investments are made at the beginning of each period. Future value of annuity due…

Q: Payments of $1000 each are made at the end of every year for 6 years to a savings account. Calculate…

A: Future value is an estimate of future cash flows ​​that may be received at a future date, discounted…