An individual deposits an annual bonus into asavings account that pays 5% interest compoundedannually. The size of the bonus increases by $6,000each year, and the initial bonus amount was $30,000.Determine how much will be in the account immediately after the fifth deposit

Q: A child's grandparents have opened a #574895 savings account for the child on the day of her birth.…

A: Given  Present value  P = Money deposit by grandparents at the time of birth of grandchild = 574895…

Q: K Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: The objective of the question is to find the interest rate required for a sinking fund to reach a…

Q: a. If an investor invests a sum of Rs. 6000 at an interest rate of 10% compounded quarterly. After 3…

A: a. Given An investor invests a sum of Rs. 6000 at an interest rate of 10% compounded quarterly.…

Q: Your visa card charges 1 % interest every month, what are the nominal and effective interest rates…

A: The nominal interest rate per year can be calculated as follows: Thus, the nominal interest rate is…

Q: You will deposit 11.922 at 10% compound interest for 6 years, and then move the amount you would…

A: Let's divide this question into two continuous plans 1st plan with a 10% compound interest rate, 2nd…

Q: 18 YEAR ANNUITY WITH 7.86% COMPOUNDED HOW MUCH TO PAY TO RECEIVE $1900 ANNUALY OVER 18 YEAR PERIOD

A: Compounding refers to a process in which the interest rate is charged on the investment as well as…

Q: 1. Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.)…

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

Q: You have borrowed $300K to purchase a house. The term of the mortgage is 15-year fixed with a…

A: here we calculate monthly payment and  increase in pay off mortgage in 10 year by using the formula…

Q: An investment company is going to place $300,000 into an annuity. Then, it is going to add $25,000 a…

A: An investment is the responsibility of money or capital to something with the expectation of profit…

Q: Tyrone wants to spend $14,500 on a new car three years from now. He opens a savings account and…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: How long in years will money double its amount if invested at 10% simple interest?

A: Given interest r= 10%

Q: Mr. Lee purchased a small condominium. He paid P350,000 as down payment and agreed to pay P35,000…

A: In the first place, the loan amount is the present value of quarterly payments for 5 years…

Q: Lany borrows money from a bank and promised to pay P5000.00 after 12 months. How much money did he…

A: Part-1) Given that: Future value (FV) = P5000 Time (n) = 1 year (or 12 months) Interest rate (i) =…

Q: A man bought an equipment costing P60,000 payable in 12 quarterly payments each installment payable…

A: Quarterly compounding refers to the amount of interest earned on a quarterly basis on an account or…

Q: $9000 is deposited into a savings account at the end of each year for 20 years. If the account pays=…

A: here we calculate how much value will the account have at the end of the 20 years period by…

Q: Grandma wants to give you $420 at the beginning of each month while you are at school for 3 years.…

A: Periodic Payment (PMT) = $420 Time period = 3 years or 36 months n = 36 Interest rate = 4.8%…

Q: homeowner planning a kitchen remodeling can afford a $700 monthly payment. How much can the…

A: Given,   R = $700  Time = 5 years  Rate (r) = 9%

Q: Using the data given below, select the equation that will correctly calculate the future value of…

A: Dear student, kindly check the answer in the explanation box below.Explanation:Dear student, kindly…

Q: Please show work

A: According to the question, an investment of $2,000 has made for 20 years at 8% per year. The amount…

Q: Calculate the future value for the following 3 problems Present Value Interest Rate Time (Years)…

A: Future Value takes into account the time value of money. It calculates the value of an asset at a…

Q: company must pay a ​$308, 000 settlement in 3 years. ​ What amount must be deposited now at 8​%…

A: Here, we calculate the given as follow;

Q: Alfred loaned a certain amount of money for his company. He promised the bank that he will pay P…

A: Here, given information is: Monthly payment (A): P 10,000 Time period (N): 5 months Interest rate…

Q: A building is priced at $300, 000. If a down payment of $20, 000 is made and a monthly payment is…

A: Building Price = $300,000 Down payment = $20,000 r = 10% compounded monthly

Q: An engineer deposits 7,000 pesos every year end in a savings account that pays nominal annual…

A: The formula: FV=A[eδn-1eδ-1] Where,FV = Future Value A = Regular savings n = Number of periodδ =…

Q: Tom makes annual payments of $12,204.21 per year on a loan. The loan was set at $42,000 at an…

A: Tom makes annual payments of $12,204.21 per year.The initial loan amount is $42,000.The interest…

Q: Compute for the effective interest rate per month Nominal rate = 22.86% compounded semi-annual

A: Effective Interest Rate = (1+ i/n )n -1  Where , i = interest rate  n = Compounding periods  Given ,…

Q: John-The-Smart-Investor plans to make uniform deposits every three months into a high yield savings…

A: YTM = 8% = 0.08 Coupon rate = 10% = 0.10 time to maturity of bond, n = 3 years coupon value, C =…

Q: Elysa bought a car priced at $10,591 for 9% down and equal monthly payments for 6 years. If interest…

A: Loans are paid by equal and fixed monthly installments and these payments carry the payment for…

Q: you paid $3,100 to a bank to pay off a debt you borrowed 3 years ago with 12% annual interest rate.…

A: Present worth refers to the current value of an expected cash flow in the future based on the time…

Q: Juan makes 10 bimonthly deposits of $500 beginning one bimonthly after today, if the interest rate…

A:

Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% per…

A: The effective annual rate (EAR) is the real percent interest that a borrower or investor pays on a…

Q: Mrs. Go make deposits that forms a geometric gradient that increases at 6% per month for 1 year. She…

A: We have given that the cash flow is geometric gradient series cash flow  where g =6% of g=0.06 First…

Q: Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00…

A: Given  Mr. Benedito borrows $50,000, So present value P=$50,000 The value of the promissory note is…

Q: Mr. Sabando, franchisee of a food stall business, received an offers from two well-known food…

A: Particular  Company X   Particular Company Y End of 3 year 120000   Each Quarter for next 5 year…

Q: if I loaned 167,795 today and promised to pay it back after 5 years to the bank with monthly…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: At a certain interest rate compounded semi annually P5000 will amount to P20000 after 10 years. What…

A:

Q: How many years will it take an investment to double if the interest rate is 8.4% compounded at the…

A: The formula for effective interest rate per year is i=1+rmm-1 where m is the reciprocal of the…