Every year you deposit $2,000 into an account that earns 2% interest per year. What will be the balance of your account immediately after the 30th deposit? (a) $44,793 (b) $60,000 (c) $77,385 (d) $81,136 (e) $82,759.

Every year you deposit $2,000 into an account that earns 2% interest per year. What will be the balance of your account immediately after the 30th deposit? (a) $44,793 (b) $60,000 (c) $77,385 (d) $81,136 (e) $82,759.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: It is now January 1, 2018, and you will need $1,000 on January 1, 2022, in 4 years. Your bank…

A: According to the present and future value annuity, the regular periodic payments would be asking…

Q: An investor deposits 10,000 into a savings account that sets its interest rate for the year on the…

A: The account balance at end of time can be calculated with the help of future value function

Q: You deposit $2,500 at the end of the year (k = 0) into an account that pays interest at a rate of 7%…

A: Saving Account is a deposit facility offered by commercial banks to their customers which gives them…

Q: Equal – quarterly deposits of P 2,000 for 2 years which starts immediately is made at a savings…

Q: An individual makes 6 annual deposits of P2,000 in a savings account that pays interest rate of 4%…

A: Annual deposit = P 2000 Number of annual deposit = 6 Interest rate for first 8 years = 4% Interest…

Q: Forty eight monthly deposits are made into an account paying 6% nominal interest per year compounded…

A: Amount of each deposit = M Number of deposits (n) = 48 r = 6% per annum = 0.5% per month Accumulated…

Q: You invested $10,000 on February 8, 2021, in an account that pays 4% compounded monthly. If simple…

A: In case of partial period calculation and when compounding monthly, number of complete months taken…

Q: An investor deposits €10,000 in a bank account that pays simple interest at a rate of 5. What will…

A: Time value of money: The time value of money is the idea that the value of money received today…

Q: You deposit $ 6,957 in an account that pays 1 % simple interest. How much do you have after 12…

A: Deposit amount (P) = $ 6,957 Interest rate (r) = 1% Period (t) = 12 Years

Q: Suntech Distributors, Inc., deposits $4,000 at the beginning of each 3-month period for 7 years in…

A: Formula: A = P [ 1 + ( r / N )NT ] Interest : Interest is a fee charged on the borrowed amount.

Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. If…

A: FV of annuity = P * [(1+r)^n-1] / r Where, P = amount of each deposit r = rate of interest per…

Q: You put $9,000 in an account earning 3%. After 2 years, you make another deposit into the same…

A: Deposit now (P1) = $ 9000 Annual interest rate (r) = 3% Deposit after 2 years (P2) = X Balance after…

Q: An account pays interest at 1.5% per month. If you deposit $5000 at the beginning of this year, how…

A: Future Value = Present Value * (1+rate)^n Where, Present value =$5000 rate = 1.5% or 0.015 n = no of…

Q: A bank account pays 5.2 % annual interest compounded semiannually. How much money should be…

A: The amount to be deposited today can be calculated with the help of present value function Future…

Q: Shaun deposits $3,000 into an account that has an annual rate of 2.9% compounded continuously. How…

A: Deposited amount (PV) is $3,000. Annual rate is 2.9% compounded continuously. Period is 2 years 9…

Q: If a deposit of $100 is made on the first day of each month into an account that pays 6% interest…

A: The compounding method is used to determine the future value of cash that is deposited today. Given;…

Q: nifer deposited $54,000 at Bank of America at 20% interest compounded quarterly. a) What is the…

A: In this we need to find out the effective annual rate.

Q: If for the next 30 years you place OMR 3,610 in equal annual year-end-deposits into an account…

A: Future value of annual year end deposits is calculated by future value of ordinary annuity formula.…

Q: You decide to deposit $103 monthly in a 2.98% annual interest bearing account over the next 8 years.…

A: Gross amount placed in the account is simply the sum of all the payments made in the account.

Q: You place £1,000 on deposit at an annual interest rate of 10% and make regular contributions of £250…

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

Q: What sum of money must be deposited at the end of every 3 months into an account paying 3.7%…

A: Amount that need to be deposited in in 3moths can be calculated using the formula of the future…

Q: If you deposit 2500 into an account paying 11% annual interest compounded quarterly, how long until…

A: The number of years: An initial investment grows to a certain given amount at a specified interest…

Q: A man deposits $14,000 at the beginning of each year for 14years in an account paying 77%…

A: The question is based on the concept of future value of annuity payment due. Future value of an…

Q: If the interest is deposited into a non interest bearing account B, what is the balance in account B…

A: The first investment is effectively a payout annuity where the interest amount is withdrawn each…

Q: Suppose $1,000 is deposited in a bank account today (time 0), followed by $1,000 deposits in years…

A: Given amount of deposit = $1,000 Rate of interest = 6%

Q: JP just made a deposit of $4,321 is made today in an account earning 5.3% APR compounded annually.…

A: Data given: P=Deposit amount = $4,321 r=Rate = 5.3% APR compounded annually n= 15 years Required:…

Q: You wish to save $58000 in an account which pays 7% compounded quarterly by making monthly deposits…

A: Given: Expected value in the account in future $58,000.00 Interest rate per year 7%…

Q: An individual makes five annual deposits of Php 2,000 in a savings account that pays interest at a…

A: Given: Number of annual deposits "n"= 5 Amount of annual deposits "PMT"= 2000 Rate per year during…

Q: Beginning in January, a person plans to deposit $100 at the end of each month into an account…

A: Using excel FV function

Q: You deposit $296 today into a bank account that earns 12% annually. How much will be in your…

Q: On each December 31, you plan to transfer $2,000 from your checking account into an…

A: Future value: It refers to the sum of money that will be received by the investor in the future by…

Q: You deposit $2,000 in an account today earning 8% per year. Five years from today, you make another…

A: Using excel PV and FV function

Q: What amount must be deposited at the bank today to grow to $600 in 4 years, assuming 10% interest…

A: Amount means the sum to be received after few year with interest. Principal means the sum to be…

Q: If you deposit $110 every month for the next 7 years, with first deposit to be made today and all…

A: In this we have to calculate equivalent monthly compounding rate and calculate the future value.

Q: If you deposit #9989 into an account paying 3.6% annual interest compounded monthly, how much money…

A: The importance of future value: Future value is a crucial estimate since it informs investors and…

Q: It is now January 1, 2018, and you will need $1,000 on January 1,2022, in 4 years. Your bank…

A: a) Face Value=1000Number Of Years=4rate=8%Present Value Of Amount to be Deposit Today…

Q: Deposits are made at the end of years 1 through 7 into an account paying 5% per year interest. The…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: A deposit of $3,000 is made in a savings account that pays 7.5% interest compounded annually. How…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: A person deposits $2750 in an account that yields 3.5% interest compounded annually. Set up a…

A: Deposit amount (D) = $2750 Annual yield (r) = 3.5%

Q: A deposit of $50,000 is made into an account that pays 10% compounded semiannually. How much would…

A: Introduction: Amount which is deposited into an account now is referred to as present value. The…

Q: If you deposit 100 OMR into your savings account at the beginning of each year over a 12-year…

A: The future value of annuity due refers to the future value of a series of payments. The future value…

Q: Suppose that $4500 is invested in an account that pays 2% annually and is left for 4 years. 1) How…

A: Given Information: Principal = $4,500 Rate = 2% or 0.02 Time = 4 years

Q: 2. If $100 is deposited in a bank at the beginning of each month for 10 years, what is the…

A: Computation:

Q: 35 years

A: SOLUTION:- General formula for future value when interest is compounded annually is FV=P(1+r)n…

Q: You have $2,000 invested in a bank account that pays a 4 percent nominal annual interest with daily…

A: Invested amount (P) = $ 2000 Annual interest rate = 4% Daily interest rate (r) = 4%/365 =…

Q: how much is Helen's deposit

A: Future value of a deposit is the net worth that a deposit will earn at a specified future date with…

Q: You deposit $400 each month into an account earning 2% annual interest compounded monthly. (Enter…

A: Monthly deposit (P) = $ 400 Annual interest rate = 2% Monthly interest rate (r) = 2%/12 =…

Question

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

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

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 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.
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
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
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?
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?
You decide to deposit $103 monthly in a 2.98% annual interest bearing account over the next 8 years. What is the gross amount actually placed in the account?
If you deposit #9989 into an account paying 3.6% annual interest compounded monthly, how much money will be in the account after 8 years? Round your answer to 2 decimal places.
If you deposit $250 each month into an individual retirment account that earns 4.8% interest compounded monthly, a.) How much will you have in the account 30 years from now ? b.) What is the interest earned on the account ?
Assume you deposit $4,400 at the end of each year into an account paying 10.5 percent interest. a. How much money will you have in the account in 24 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 48 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Assume you deposit $5700 at the end of each year into an account paying 11.25 percent interest. A.) How much money will you have in the account in 19 years? B.) How much will you have if you make deposits for 38 years?
Every year you deposit $3,500 into an account that earns 19% interest per year, What will be the balance of your account immediately after the 40th deposit? Click the icon to view the interest and annuity table for discrete compounding when / 1% per year. Choose the correct answer below. O A. $165,837 O B. $123,795 OC. $171,102 OD. $172,813 OE. $140,000