Assume you deposit $1,000 today in an account that pays 8 percent interest (compounded annually). How much will you have in four years? Group of answer choices $1,320 $1,360.50 $1,080 $735.02

Q: receiving $5,750 at the end of three years, assuming an interest rate of 8% compounded semiannually?…

A: Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv], [type])Rate The…

Q: How much will accumulate in three years by depositing $540 at the end of each of the next 12…

A: The future value can be compared by looking at how much money you will have in the future from the…

Q: You want to retire exactly 35 years from today with $1,990,000 in your retirement account. If you…

A: Monthly deposits are the amount of money kept aside that earns a defined rate of interest for a…

Q: You have signed up for your 401k and will deposit $750 into your 401k when you are paid at the end…

A: Monthly deposit = p = $750 Interest rate = 6 / 12 = 0.5% Time = t = 15 * 12 = 180 months

Q: A bank is offering to pay you $1000 at the beginning of each month for the next 10 years. The…

A: Payment per month (PMT) = $1,000Timing = BeginningAnnual interest rate is 6%. So, monthly interest…

Q: You want to retire exactly 35 years from today with $2,080,000 in your retirement account. If you…

A: An annuity refers to a series of equal cash flows received or paid at regular intervals for a…

Q: You have signed up for your 401k and will deposit $1,200 into your 401k when you are paid at the end…

A: Future value (FV) is the value of an investment or cash flow at a specific point in the future,…

Q: Suppose you plan to retire in 40 years.  If you make annual contributions of $13,000 into your…

A: The future value refers to the value of all amount accumulated at the regular intervals for a…

Q: If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: your bank will pay you an interest rate of .142 percent per week. You want to have $26, 500 in 9…

A: Present value (PV) is a financial concept crucial for evaluating the current worth of future cash…

Q: How much will $30.000 grow to in three years, assuming an interest rate of 1% compounded annually?…

A: The maturity value of investment can be calculated by calculating its future value. The future value…

Q: Find how much money needs to be deposited now into an account to obtain $4,400 (Future Value) in 12…

A: Given: Future Value =$4400No. of years (t) =12 yearsInterest rate (r)=5.5% per year==0.055Compounded…

Q: You are planning to make monthly deposits of $70 into a retirement account that pays 8 percent…

A: ParticularAmountPayment (PMT)70Interest Rate (RATE)0.08No. of years (NPER)29Compounded 12

Q: Waiting for Answer

A: Step 1: Given Value for Calculation  Future Value = fv = $100Time = t = 1 YearsOpportunity Cost = c…

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?…

A: Future Value = PV × ( 1 + r )n where, PV = Present Value = $700 r = Interest Rate = 4% n = time…

Q: If you deposit OMR 5000 in your account in a bank; if your bank pays 9.05% interest, how much will…

A: future value = present value *(1+rate)^n future value = 5000 * 1.090515

Q: You are planning to make monthly deposits of $110 into a retirement account that pays 8 percent…

A: Compound = Monthly = 12Monthly Payment = p = $110Interest Rate = r = 8 / 12%Time = t = 28 * 12 = 336

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: 1) Future Value of anuity = P * [ { (1 + r )n -1 } /r ] where, P =  periodic payment r = interest…

Q: Suppose you deposit $5,000 into an account at the end of 2021, $4,500 at the end of 2022, $4000 at…

A: Here in this question, we are required to calculate how much amount will be accumulated after last…

Q: You want to have $51,000 in your savings account 9 years from now, and you're prepared to make equal…

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

Q: How much would you need to deposit in an account each month in order to have $40,000 in the account…

A: The concept of time value of money will be used and applied to get the solution.   The amount to be…

Q: Assume you can obtain an annual interest rate of 12% compounding monthly.  You are going to invest…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: You are planning to make monthly deposits of $160 into a retirement account that pays 13 percent…

A: This question pertains to computing compound interest within the framework of a retirement account.…

Q: You are opening an investment account that will earn 6.5% compounded annually.  You will invest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: If you deposit $150 dollars into your savings account at the beginning of each month, and that…

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

Q: If you deposit $2,000 into an account at the end of each of the next 40 years, at 4.5% interest, how…

A: It can be solved using  In excel FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate for the…

Q: You expect to receive $3.500 upon your graduation and will invest your windfall at an interest rate…

A: It can be calculated using=NPER(rate,pmt,pv,[fv],[type])Rate The interest rate for the loan.Nper…

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: Based on the given information, The semi-annual interest rate = 6% Time period = 20 Amount = $500 We…

Q: You will receive $8,800 in two years when you graduate. You plan to invest this at an annual…

A: Future value (FV) is the value of an asset or investment at a specified date in the future, based on…

Q: You would like to save a million dollars by depositing $25,000 at the end of year into an account…

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

Q: What will the value of your account be 4 years from today?

A: Future Value of Annuity: It is the future worth of the present stream of cash flows. It is…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.