Assume that 1 year from now you plan to deposit €1,000 in a savings account that pays a rate of 8 percent. a. If the bank compounds interest annually how much will you have in your account 4 years from now? b. Suppose you deposited the €1,000 in 4 payments of €250 each at the end of Years 1, 2, 3 and 4. How much would you have in your account at the end of Year 4, based on 8 percent annual compounding? c. Suppose you deposited four equal payments in your account at the end of Years 1, 2, 3 and 4. Assuming an 8 percent interest rate, how large would each of your payments have to be for you to obtain the same ending balance as you calculated in part a?

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A: Given information: Deposit (Present value) : OMR 8141 Rate of interest : 8% Time Period : 5 years…

Q: Your bank pays 2.3% interest per year. You put $1.100 in the bank today and $500 more in the bank in…

A: Year 0 Deposit = $1,100 Year 1 Deposit = $500 Interest rate = 0.023 Amount in the bank in 2 years =…

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A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

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A: Future value refers to the amount of a current asset at some future date affected by the inflation…

Q: Give me correct answer with explanation

A: The problem is asking us to find the future value of an investment. The future value is the amount…

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A: When interest is compounded multiple times in a year: Future value = Present value *(1+r/m)n*m  r is…

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A: Ordinary Annuity means a series of equal payments that are made over a fixed length of time at the…

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A: Given: Investment = 10,000 Interest rate = 14% Years = 10

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

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A: Given: Particulars 15% 12% Deposit € 1,100 € 700 Years 2 2

Q: If you deposit money today in an account that pays 3.4% annual interest, how long will it take to…

A: Given information: Let us suppose the present value is $1,The interest rate is 3.4%Future value is…

Q: mpounded monthly. You plan to put $1,000 per year over the next 2 years as well.  How much will you…

A: To determine the value of the bank account, we need to determine the effective annual rate given the…

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: Option 1: Deposit $ 500 now Future Value = Present Value*(1+ Interest rate)n Solved using Financial…

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A: Present value is the present worth of any sum of money to be received in the future at a specified…

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

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A: Given, Number of years 12.

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A: We need to calculate future value here:It has formula, FV = PV * (1+r)^nwhere, PV is present valuer…

Q: Suppose you receive​$130 at the end of each year for the next three years.    a. If the interest…

A: The PV of an asset is the value of all its cash flows today discounted at an assumed interest rate.…

Q: You want to have $67,000 in your savings account 10 years from now, and you're prepared to make…

A: Payment per period is the regular payments made or received of an investment, while future value is…

Q: If you deposit $500 at the end of each year for the next 5 years in a bank where it will earn 6%…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: You Save Bank has aunique account. If you deposit $9,000 today, the bank will pay you an annual…

A: FV = A*(1+r)nwhereFV = future valueA = amount investedr = interest raten =time period

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A: The effective annual interest rate (EAR) represents the actual interest rate earned on an investment…

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A:

Q: You have a unique account in your local bank How much will you have in your account in 14 years?

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Q: You borrow 180000 for 12 years from a bank in order to renovate your flat. The effective interest…

A: Loan Amount = 180,000 Time Period = 12 years Interest Rate = 4.8%

Q: You plan to deposit $500 in a bank acoount now and $300 at the end of the year f the account eams S%…

A: The conceptual formula used:

Q: You deposit $296 today into a bank account that earns 12% annually.  How much will be in your…

A:

Q: a. How much money will you have in the account in 22 years? Future value of 22 deposits b. How much…

A: The future value of an investment forecasts the expected value of an investment at a given future…

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A: We need to use future value of ordinary annuity formula to calculate annual payment to achieve goal.…

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A: The future value refers to the estimated value of an investment or asset at a specific point in the…

Q: ou are promised 5 (yearly) payments of 500 EUR from your fairy godmother. The first payment is…

A: We can compute the present value of all promised payments at the bank agreed interest rate of 3%.