b. You have a $20,000 note payable which is due in three years. How much money must you put into a savings account today in order to have enough money to pay off the debt on time assuming your savings account earns 3% interest compounded annually? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)? Need detail help wtih D. include N=I%=PV=FV=PMT Thank you

b. You have a $20,000 note payable which is due in three years. How much money must you put into a savings account today in order to have enough money to pay off the debt on time assuming your savings account earns 3% interest compounded annually? d. In question “b." above, if you leave he money in the account for one more YEAR, how much more interest will you earn in that additional year (Year 5)? Need detail help wtih D. include N=I%=PV=FV=PMT Thank you

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(Comprehensive problem) You would like to have $54,000 in 16 years. To accumulate this amount, you plan to deposit an equal sum in the bank each year that will earn 6 percent interest compounded annually. Your first payment will be made at the end of the year. a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large lump-sum deposit today instead of the annual deposits, how large should this lump-sum deposit be? (Assume you can earn 6 percent on this deposit.) c. At the end of five years, you will receive $20,000 and deposit this in the bank toward your goal of $54,000 at the end of year 16. In addition to the lump-sum deposit, how much must you deposit in equal annual amounts, beginning in year 1 to reach your goal? (Again, assume you can earn 6 percent on your deposits.) a. How much must you deposit annually to accumulate this amount? (Round to the nearest cent.)
Question 3: You just got a loan for $15,000 and you plan to pay it off in three years. Your monthly payments are $500 each. What is the interest rate that the bank is charging you? What if you did bi- monthly payments of $250? How much sooner will the loan be paid off?
7) I need help with finance homework asap please! Assume that today you made an initial deposit in the amount of $16,000 into a savings account that pays 4.25% simple interest annually. Assuming no withdrawals or additional deposits, what will be the balance of this account in 10 years?
1) you open `on an Account to SAVE for downpayment house. The Account has an APR of 1.2% initial compounded quarterly. You plan to make an and quarterly deposits of $450." for 5 years. contributions? ^) After 5 years, what is the total of your What is the total interest earned? B) How much will $ i 7 year 7 2 years! 5 years $ you il D) If you $150,000 condo, want to make. conde, how of $450 would you e) suppose you if c) What would happen if you used a bank that offered APR of 1.15% Compounded daily? (still contributing have had more in the $450 quarterly) Would account after 5 YEARS # have in the Account after: you 甘 7 jist downpayment of 10% on a many, quarterly contributions have to make into the 1st Account? CD (5 years out 7% APR. Monthly) at were given A worth $5000, you combine the CD with the Account will you have enough for the 10% down payment in 5 years?
How much do you need to deposit into a bank in order to receive proceeds of $200,000 in 5 years if the interest rate is 2.5% What if interest is compounded quarterly?
Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 7% annual interest, which will provide the needed $5,000 payments. How large must the deposit be? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much will be in the account immediately after you make the first withdrawal? Do not round intermediate calculations. Round your answer to the nearest cent.
3. Compound interest Old Time Savings Bank pays 4% interest on its savings account. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the tenth year?
3) Your father planned for your study at BUC and saved for 5 years before your registration OMR 1200 each year at Nizwa Bank. Suppose that the Interest Rate on such deposit was 11% annually. Questions: a. Set up the time line b. What is the FV of those payments?
5. You take $100 to your local savings bank to invest for five years. You are given the choice of two investments by the banker Notifications Time Left 00:00:28 ? Guide Me 1. You can Invest in a regular savings account that pays you 14.00% interest each year with interest compounded annually. That is each year the interest you can gets deposited in your bank account and earns interest until the end of the five years. it. You can invest in a special account that pays you 20.00% interest each year, the catch is that the interest does not compound, Rattier each year the interest payrrient is put into a special account which collects no further interest and cannot be reinvested anywhere until the end of the five years Which option should you select and why? a, Select Option i: It earns $44.63 more than Optianill b. Both Options earn you the same amount of money so you are indifferent between the two c. Select Option it It earns $7.46 more than Option d. Select Option it It earns $30.00…
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Problem 3: Your parents deposit $1000 in your bank account paying 5% per year. What would be the balance in your account after 10 years?