7:19 1Eva opened a savings account with aninitial deposit of $897. They then deposit$897 into that savings account at the end ofevery subsequent year. This savingsaccount pays an annual interest rate of2.8% and is compounded annually. Howmuch will Eva have in their account after 8years?B(t) = P.Bn-t1+1n¹ + 1)^¨* - ;(5)I U U A123QWERTYUIOPASDF GHJKL||||=spaceZXC CVBNM ×return!

We need to use future value of annuity formula to calculate saving balance after 8 years. B(t)…

Answered: Eva opened a savings account with an…

Eva opened a savings account with an initial deposit of $897. They then deposit $897 into that savings account at the end of

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: a. What is the interest rate per month that is equivalent to 2.25% p.a.? %Round to two decimal…

A: Simple interest is a method of calculating the interest on the original amount of loan or deposit.…

Q: Record the amount for check #101 in her check register.

A: Since we are not given the current balance of Zoe's Account, the balance after recording the…

Q: Mia just received her bank statement. The statement lists three deposits and 32 checks that cleared.…

A: Outstanding check are check written and issued to party but not presented before banks for payment…

Q: Betty's account balance grew to $1320 after 7months of 4.32% simple interest. Find her original…

A: The original principal amount is calculated as present value of maturity value. Formula as ,…

Q: Mary Moore opened a new savings account. She deposited $2,000 at 4% compounded quarterly. At the end…

A: Deposit now (P) = $ 2000 Annual interest rate = 4% Quarterly interest rate (r) = 4%/4 = 1% Deposit…

Q: Abdul has a debit card linked to a checking account with an available balance of $1480. He also owes…

A: Data given: Checking account balance=$1480 Amount owed to credit card= $1030 Credit card limit=$2400

Q: Marcy bought a new pair of designer shoes and a matching purse. She paid using a method that would…

A: Cash is defined as the funds that are physical currency form like - coins and banknotes. It is…

Q: Gabrielle Patterson deposited $3,600 in a new savings account. She made no other deposits or…

A: Interest is calculated in two ways compound interest and simple interest.

Q: Hadiya Benzema is reviewing her assets and liabilities. What is her net worth? Assets: Cash in…

A: Net worth is defined as the amount that is arrived at by subtracting the value of total liabilities…

Q: a parent on the day of the child is born wishes to detrmine what lump sum would have to be paid into…

A: An annuity is a contract between you and an insurance company in which you make a lump-sum payment…

Q: After reading the new account insert in his monthly statement, Tony Mercadante determined that the…

A: As per FDIC, each account holder has an insurance coverage to a maximum amount of $250,000 per…

Q: 13. Alec Tomita's savings account statement is shown below. What is his new balance? Previous…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Esther had a balance of $4,145.28 in her checking account.She wrote checks for $88.90 and $324.75.…

A: Checking account means an account with banks or other financial institution where we can deposit out…

Q: Laura borrowed a total of $25,000 from two different banks to start a business. One bank charged the…

A: Given in the question:Total Loan Amount = $25,000Interest rate of one bank = 3%Interest rate of…

Q: 4. Linda and Jeff each open new bank accounts at time 0. Linda deposits 6,000 into her bank account,…

A: Data given: Linda deposit=6000 Jeff deposit=4800 Interest earned in Linda's account during 6th…

Q: 4. Peter Sarnoff deposited $1000 in a new savings account at First National Bank. He made no other…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Christopher just received his checking account statement from his bank. He has a NOW account with…

A: Financial planning involves setting goals, assessing current financial status, and creating…

Q: Assume simple interest and find the rate of interest paid by the bank.

A: The amount deposited in the bank is $6,400. The amount received is $6,453.33 The interest paid by…

Q: On May 1, Cleveland Livingston opened a savings account that paid 3.5% interest at Fulton Savings…

A: Saving account: A savings account is an interest-bearing deposit account with a bank or other…

Q: DA person arranges to pay his monthly telephone bill automatically from his checking account. What…

A: Introduction: Banks: Banks accepts deposits from public and give loans to the public who needed.…

Q: On April 1, 1998, John opened a savings account with a nominal interest rate of 3.4% payable monthly…

A: Quaterly deposit in investment fund is $400 Interest rate of quaterly fund is 4.6% payable quaterly…

Q: Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past…

A: Interest charges are the amount of cost and charges paid for the amount borrowed either for personal…

Q: Current Attempt in Progress John and Patricia Garfield invested $7,600 in a savings account paying…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Ever since your first birthday, your parents have been depositing $1,000 into a college savings…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Justin P. deposited $2000 into an account 5 years ago. Simple interest was paid on the account. He…

A: Simple interest is the type of interest where the interest is charged on the principal amount only.…

Q: Mandy opened a checking account with $123. She overdrew her account by $8, and then deposited an…

A: Overdraw" refers to the act of withdrawing or spending more money from a bank account than what is…

Q: Erin O’Malley looked over her savings account statement. Her previous balance was $981.93. She made…

A: New balance = Previous balance + deposits + interest earned - withdrew

Q: Christopher just received his checking account statement from his bank. He has a NOW account with…

A: Cash management refers to the efficient and strategic handling of an individual's or a business's…

Q: Cy Walker invests $20,000 of his personal savings into Mookie the Beagle Concierge. MTB Concierge…

A: What type of account is owner's investment ? Owner's investment (capital ) is personal account .…

Q: 23. Andy Eichel deposits the money he made at his garage sale into his savings account. He has 47…

A: Calculation of total amount are as follows:

Q: Venus Waldo reviewed her account statement and wanted to verify that the interest amount was…

A: Interest: It refers to the monetary charge on the amount borrowed by the borrower from the lender.…

Q: Michelle Payne deposited $24,000 in a savings account paying 6.25% simple interest. How long (in…

A: Formula: FV=PV×1+rt

Q: Example 1.10 Jim invests $500 at the beginning of 2002, 2003, and 2004 in a bank account that pays…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Michelle Payne deposited $4,000 in a savings account paying 6.25% simple interest. How long (in…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: How do you journalizing this transaction on april1 .Ali deposit 20000 in a bank account in the name…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Adjusted Bank Balance. Mary's last bank statement showed an ending balance of $236.24. This month,…

A: Given, Ending Balance = $236.24 Deposit = $893.13 Withdrawl = $345.63 Two Checks cleared = $201.12…

Q: c. Compare the amounts of money that Mitch and Bill deposit into their accounts. Mitch deposits…

A: Data given: Mitch began depositing $1400 per year into a savings account for the first 10 years.…

Q: Calculate the amount of money that will be in each of the following accounts at the end of the given…

A: Based on the number of compounding, the periodic interest rate and period are calculated. With…

Q: Ken is a customer at Orange Grove Bank and frequently banks online. One day he receives an email…

A: So as to compute the social benefits, and other entitlements, of a worker social security number was…

Question

7:19 1
Eva opened a savings account with an
initial deposit of $897. They then deposit
$897 into that savings account at the end of
every subsequent year. This savings
account pays an annual interest rate of
2.8% and is compounded annually. How
much will Eva have in their account after 8
years?
B(t) = P.
B
n-t
1+
1
n
¹ + 1)^¨* - ;
(5)
I U U A
123
QWER
TYUIOP
ASDF GHJKL
||||
=
space
ZXC CVBNM ×
return
!

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 Analysis

VIEW

Step 2 Calculation of future value of annuity

VIEW

Step by step

Solved in 2 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

Frank deposites $885 into a savings account earning 2.8% exact simple interest . How much interest was earned in 165 days?
Lara's $600 deposit earned $120 at 2.7% simple interest . How long was the money on deposit?
On the day you were born, your parents opened than the amount deposited in the previous year Immediately after your parents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to which of the following? OA $80,839 OB $27,958 OC. $99,002 a college savings account with an initial deposit of $2.200 On every one of your birthdays since, your parents have made an additional deposit that is 3% larger The account eams 6.7% interest annually OD $30,000 OE $29,050 The deposit made on your 18th birthday will be the final deposit made into the account You plan on using the balance in the account to fund your college education You will be attending a 4-year institution and you will assume that tuition costs will remain constant over the next four years. If the first annual tution payment wit be made on your 19th birthday, what is the maximum annual tabon expense that the balance in your account can sustain if you plan on attending college for four…
Diana Rene’s deposited an inheritance of 13,050 in a bank account and earned 435 in Simple bankers interest at a rate of 10.5% find the length of time the money was on deposit
2. On April 1 Kendrick opened a savings account at a bank that paid 3.55 $1,000. On April 20 he withdrew $500. On April 30 the bank calculated the daily percent interest. His initial deposit was $3,200. On April 9 he deposited another interest. a) How much simple interest did his money earn? b) How much was in the account after the bank calculated the daily interest on April 30?
Suppose that before ATMs and credit cards, a person goes to the bank once at the beginning of each four-day period and withdraws from her savings account all the money she needs for four days. Assume that she spends $100 per day. Calculate the amount of money this person withdraws each time she goes to the bank.
Domestic
Dave deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.08 per annum. Determine the future worth of the deposit?
Naomi Greenwell fills out a deposit slip for her saving account. She deposits a check for $445.96. She also has $215.44 in cash and $23.17 in coins. What is her total deposit?
4. Samuel opened an account in a bank with a deposit of RM3,000 during his daughter is 3 years old birthday. He aims to give her as a birthday present when she is 18 years old. If the bank pays 4.8% compounded every six months, calculate the total amount received by her daughter and the interest earned on her 18 years old birthday. No use excel.
I need the answer as soon as possible

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS