Financial accounting question Bucher Credit Bank is offering 4.7 percentcompounded daily on its savings accounts. Assumethat you deposit $4,500 today.1. How much will you have in the amount in 5 years?2. How much will you have in the account in 10 years?3. How much will you have in the account in 20 years?

Step 1: Define Future ValueThe amount invested today in any of the investment products that are…

Answered: Bucher Credit Bank is offering 4.7…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
You Save Bank has aunique account. If you deposit $9,000 today, the bank will pay you an annual interest rate of 3 percent for 6 years, 3.6 percent for 5 years, and 4.3 percent for 9 years. How much will you have in your account in 20 years?
K You plan to deposit $700 in a bank account now and $100 at the end of the year. If the account earns 7% interest per year, what will be the balance in the account right after you make the second deposit? ... The balance in the account right after you make the second deposit will be $ (Round to the nearest dollar.)
You deposit $296 today into a bank account that earns 12% annually. How much will be in your account after 25 years? note: show your answer to the nearest dollar (round to nearest dollar).
Spartan Credit Bank is offering 6 percent compounded daily on its savings accounts. You deposit $4,400 today. How much will you have in the account in 4 years? How much will you have in the account in 12 years? How much will you have in the account in 19 years?
If you deposit $8,000 in a bank account that pays 7% interest annually, how much will be in your account after 15 years? If you deposit $4,000 in a bank account that pays 8.6% interest annually, how much will be in your account after 3 years? If you deposit $1,000 today, and $1,500 every year, in a bank account that pays 4% interest annually, how much will be in your account after 23 years? If you deposit $14,000 in a bank account that pays 3.7% interest annually, how much will be in your account after 5 years? If you deposit $13,000 in a bank account that pays 13% interest annually, how much will be in your account after 13 years? If you deposit $7,500 today, and $2,000 every year, in a bank account that pays 2.8% interest annually, how much will be in your account after 35 years?

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Bucher Credit Bank is offering 4.7 percent compounded daily on its savings accounts. Assume that you deposit $4,500 today. 1. How much will you have in the amount in 5 years? 2. How much will you have in the account in 10 years? 3. How much will you have in the account in 20 years?