Answered: Brendan has $96,400 in a savings…

Brendan has $96,400 in a savings account that earns 3% annually. The interest is not compounded. How much interest will he earn in 3 months?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 13E

See similar textbooks

Related questions

Q: Ali made 5 uniform annual deposits of $1800 in a savings account with an interest rate of 3% per…

A: Future value is the increased value of investment which is computed on the basis of specific rate of…

Q: Michael has a credit card debt of $70,000 that has a14% APR, compounded monthly. The minimum…

A: Part 2: Explanation:Step 1: Calculate the monthly payment $ P $ for the old credit card with a 14%…

Q: Bill started saving for his retirement when he was 37. Each month he depo $100.00 into an annuity…

A: Future value of amount includes the amount being that is deposited and amount of compounded interest…

Q: John borrowed $12,000 to buy a new car and expects to pay $564.87 per month for the next 2 years to…

A: Loan amount is $12,000 Payment per month is $564.87 Time period is 2 years To Find: Loan's rate…

Q: Kerry invests $234 in a savings account that earns 2.1% compounded annually. Andy invests $234 in a…

A: Formulas: Future value = Present value *(1+rate)^years

Q: Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with…

A: Time value of money is the concept that says the monthly savings will increase portfolio value at…

Q: Jasper purchased a car for 47,500. He paid a 20% down payment and financed the rest at 2.88 % for 6…

A: Loan is a value which is borrowed from the external sources like banks for a particular period and…

Q: Derek currently has $13, 229.00 in an account that pays 6.00%. He will withdra 5, 251.00 every other…

A: Value of money changes with time and not same again.The concept of time value of money will be used…

Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?

A: Concept: The interest is the product of principal, time period and number of years that is divided…

Q: Ahmad earned $475 last summer. He deposited this money in an account that pays an interest rate of…

A: Future value = Present value * (1+rate)^n Where, n = no. of compounding period i.e. 15

Q: additional deposits or withdrawals for the accounts. Which statement is true concerning Sebastian’s…

A: the correct option is (c)

Q: John and Randy are competing to see who can accumulate more money. They are both given $100 to…

A: Time Value of Money states that a dollar earned today has more value than a dollar some time in the…

Q: Lucas made a single deposit into a savings account. At the end of saving for 18 years, Lucas has…

A: We need to use continuous compounding formula to solve this problem A=P(e)rn where A=future…

Q: James deposited $500 in his bank at 4.5% for 90 days. Use the simple interest formula to calculate…

A: Introduction: In simple interest, interest is paid only on the initial investment amount i.e. no…

Q: Lisa deposits $80,000 into an account that pays 6% interest per year, compounded annually. Scott…

A: Given: Lisa deposit = $80,000 Interest rate = 6% Scott deposit = $80,000 Interest rate = 6%

Q: Benito borrowed $800 two years ago. The interest rate on the loan was 5% compounded monthly for the…

A: Borrowed Amount is $100 Borrowed two years ago Interest Rate is 5% compounded monthly for first 8…

Q: Alice has $60,000 in a savings account that earns 8 % interest per year. The interest is not…

A: Here in this question, we are require to calculate simple interest for 4 years. Formula for simple…

Q: Stella deposits $54,000 in a savings account at a bank that offers interest of 5.3% on such…

A: The objective of the question is to calculate the future value of Stella's savings account after…

Q: posited Rs. 2,500 in an account that pays 6% simple interest. How much money will he have at the…

A: Simple interest is interest computed on principal amount only not on interest accrued or accumulated…

Q: An investor deposits $100 into his credit union account that pays interest at the rate of 3.25% per…

A: Deposits= $100 Interest= 3.25% per year Period= 7 years

Q: Oliver currently has $2,200 in a savings account paying 4.0% interest. He has a goal of taking a…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: If Jackson deposits 100 dollars at the beginning of each month in a savings account earning interest…

A: Given information: Payment made at each year amounted to $100 Number of years is 6, Interest rate is…

Q: Troy has a retirement account worth $1,250,000 . The account draws 4.5% compounded monthly. A .…

A: An annuity is a financial instrument that allows you to set aside a certain amount of money and…

Q: How much Alex must deposit annually if he wants to have $800,000 in 25 years by making equal annual…

A: Annual payments refers to the periodic payment which can be used for a variety of purposes like for…

Q: d) Sean rents out his three bedrooms flat for R5 000 per month, payable in advance. All his rental…

A: This can be calculated using excel formula for FV. Screenshot of cell reference below. Monthly…

Q: Peter makes a deposit at the end of every three months into a savings account that earns interest at…

A: Here,Time Period of Deposits in years7Interest Rate5.80%Compounding Period 2Deposit Frequency4Type…

Concept explainers

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.

Question

Brendan has $96,400 in a savings account that earns 3% annually. The interest is not compounded. How much interest will he earn in 3 months?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Given Value

VIEW

Step 2: Calculation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Alice has $60,000 in a savings account that earns 8 % interest per year. The interest is not compounded. How much interest will she earn in 4 years?
Sebastian is going to deposit $790 in an account that earns 6.8% interest compounded annually. His wife Yolanda will deposit $815 in an account that earns 7.2% simple interest each year. They deposit the money on the same day and make no additional deposits or withdrawals for the accounts. Which statement is true concerning Sebastian’s and Yolanda’s account balances after 3 years? Yolanda’s account will have about $28.67 less than Sebastian’s account. Yolanda’s account will have about $9.78 less than Sebastian’s account. Sebastian’s account will have about $28.67 less than Yolanda’s account. Sebastian’s account will have about $9.78 less than Yolanda’s account.
Spencer has $80,000 in a savings account that earns 1.3% annually. How much interest will he earn in 9 years?
Stephen has $11,200 in the bank. The account will earn 2.8% in simple interest for the next 5 years. How much interest will Stephen earn? Show your work.
An individual deposited P35,000 and earns 3% interest compounded quarterly. After six years, how much money does she has in the bank if she does not withdraw any money and let her money grow in the bank?
Joe has $1,500 in credit card debt but pays it in full every month from cash flow. He also pays her mortgage from cash flow ($2,000 principal). For savings, Joe saves $50 per month in an interest-bearing savings account. Annual interest earned and reinvested is $100. How much will his net worth increase in the current year?
Kim invests $6050 in an account earning 6.54% interest, compounded weekly. How long will it take for the amount in the account to reach $18440?
Sven accumulated $10,500 in credit card debt. If the interest rate is 3.45% per year and he does not make any payments for 15 years, how much will he owe on this debt in 15 years by compounding continuously? Round to the nearest cent. Provide your answer below:
Derek currently has S12, 511.00 in an account that pays 6.00%. He will withdraw S5, 050.00 every other year beginning next year until he has taken 8.00 withdrawals. He will deposit $12511.0 every other year beginning two years from today until he has made 8.0 deposits. How much will be in the account 23.00 years from today?Derek currently has $12, 511.00 in an account that pays 6.00%. He will withdraw $5, 050.00 every other year beginning next year until he has taken 8.00 withdrawals. He will deposit $12511.0 every other year beginning two years from today until he has made 8.0 deposits. How much will be in the account 23.00 years from today?
Molly deposits $2,500 in her checking account today. Her checking account pays interest of 2.5% compounded annually. Assuming Molly does not withdraw any funds and does not deposit any additional funds, how much will be in her account in 23 years?
Lisa deposits $80,000 into an account that pays 6% interest per year, compounded annually. Scott deposits $80,000 into an account and also pays 6% per year, but it is simple interest. find the interest Lisa and Scott earn during each of the first three years. Then decide who earns more interest each year. Assume there are no withdrawals and no additional deposits.
Rapi Tulpo invests Php1,000 in a Bank that doubles his money in five years. To what annual interest rate does this correspond assuming that he withdraws the interest each year?