Exercise 4. Simple Interest. Calculate the amount of money you will have in the following account after 5 years, assuming that you earn simple interest: You deposit $700 in an account with an annual interest rate of 4% Exercise 5. Compound Interest. Use the compound interest formula to compute the balance in the following accounts after the skd period of time, assuming interest is compounded annually: $10.000 is invested at an APR of 4% for 10 years. 01 Px (1+APR)" A ỘI = P x

Exercise 4. Simple Interest. Calculate the amount of money you will have in the following account after 5 years, assuming that you earn simple interest: You deposit $700 in an account with an annual interest rate of 4% Exercise 5. Compound Interest. Use the compound interest formula to compute the balance in the following accounts after the skd period of time, assuming interest is compounded annually: $10.000 is invested at an APR of 4% for 10 years. 01 Px (1+APR)" A ỘI = P x

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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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?
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.
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?
Calculate compound interest and effective rateSuppose $ 2,000 is deposited into a savings and loan account that pays 7.5% interest compounded semi-annually. Use compound interest to calculate the following:a. How much money will you have saved after 2 years?b. How much will be owed after 2 years?
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
A certain some of money P draws interest compounded continuously. If a certain time there are Po dollars in the account, determine the time when the financial attains the value of 2Po dollars if the annual interest rate at 2%
Suppose you invest $1,200 in an account paying 4% interest per year. a. What is the balance in the account after 2 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 25 years? How much of this balance corresponds to "interest on interest"?
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Suppose that you have borrowed 5,000,000 from a bank with 5% interest rate for 4 years. Show the table of principal payments and interests you must pay cach year if you decide to borrow with the following plans. Repay principal Repay Interest Plan Equal annual installments Interest on unpaid balance Compound and pay at end A End of loan of loan Equal annual installments C
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate $? at the end of each month 5.5% compounded monthly Click the icon to view some finance formulas. Time 11 years b. $ of the $200,000 comes from deposits and (Use the answer from part (a) to find these answers. Financial Goal $200,000 a. The periodic deposit is S (Do not round until the final answer. Then round up to the nearest dollar as needed.) 2 comes from interest. Round to the nearest dollar as needed.)
Please do c and d using factor method