Find the amount at the end of 2 years if $1,000 was invested at 5% simple interest; 5% compounded quarterly and 5% compounded monthly

Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Find the final amount of money in an account if $700 is deposited at 6.5% interest compounded…

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

Q: Find the compound amount for the following deposit. $16,000 at 5% compounded quarterly for 10 years.…

A: The future value (FV) of an investment is the value of the investment at a future point in time,…

Q: final amount of money in the account if $1200 is deposited at

A: Compounding quarterly can be considered as the interest amount which is earned quarterly on an…

Q: If $300,000 is deposited at a rate of 12% compounded bimonthly, determine the compounded interest…

A: Note: It has been assumed that bi-monthly means something which has occurred once in two months.…

Q: A loan $30.000 is to be amortized by equal payments at the end of each year for five years. The…

A: Interest payment for the 3rd year = $1080 ($30000-$6000-$6000)*6% = $1080

Q: If $200 is invested at 5% compounded quarterly, what is the interest earned after: a) 6 years,…

A: The formula used as follows: A=P1+rnn×t

Q: Determine the interest earned after 10 years if $200 is invested in each of the following accounts:…

A: Future Value = Present Value * (1+r)^n Where, r = rate of interest per period i.e. 5.40%/12 = 0.45%…

Q: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

Q: If $1,000.00 is invested in an account for 30 years. Find the value of the investment at the end of…

A: The conceptual formula used:

Q: Solve for the compound amount and compound interest earned if $ 825 is invested for 10 years at 4%…

A: The future value is the amount that will be received at the end of a certain period. The future…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: Here, Principal Amount (PV) is $13,000 Annual Interest Rate (r) is 3% Compounding Period (m) is…

Q: Find the final amount of money in an account if $7,400 is deposited at 7.5% interest compounded…

A: The interest rate compounds semi-annually. Hence, the interest rate that should be considered is…

Q: Find the accumulated value of an investment of $15,000 for 4 years at an interest rate of 4.5% if…

A: Compound interest is responsible to accelerates the growth of money. It grows an amount of money…

Q: If $12,000 is invested at an interest rate of 10% per year, find the amount of the investment at the…

A: Given:

Q: If $20,000.00 is invested in an account for 15 years. Find the value of the investment at the end of…

A: Amount Invested = $20,000.00 Years = 15 years For Simple Interest Rate = 8% per annum For Compound…

Q: Find the final amount of money in an account if $5,300 is deposited at 6.5% interest compound semi…

A: Initial deposit (I) = $5,300Semiannual interest rate (r) = 0.0325 (i.e. 0.065 / 2)Semiannual period…

Q: What is the future value of $7,200 deposited at the beginning of each year for 7 years earning 8%…

A: Calculation of Future Value:The future value is $69,383.72.Excel Spreadsheet:

Q: Suppose that $17,000$⁢17,000 is deposited for six years at 4%4% APR. Calculate the interest earned…

A: Compound = monthly = 12 Present value = pv = $17,000 Time = t = 6 * 12 = 72 months Interest Rate = r…

Q: Find the final amount of money in an account if $8,900 is deposited at 7% interest compounded…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Find the present value of a $400 payment received each six months for 3 years. Interest is 4%,…

A: In the given question we require to calculate the present value of payments received each six months…

Q: If $100,000 is invested at 5.0% annual interest, compounding monthly, what is the balance after 3…

A: The concept of time value of money will be used here. As per the concept of time value of money any…

Q: Find the final amount of money in an account if $4,900 is deposited at 4.5% interest compounded…

A: Compounding is a technique through which FV of present amount is computed by using appropriate rate…

Q: FIND THE AMOUNT OF 12,000 AFTER 2 YEARS COMPOUNDED ANNUALLY, THE RATE OF INTEREST BEING 5 DURING THE…

A:

Q: $1,000 is invested for 5 years in an account earning 8% annual interest, compounded semiannually.…

A: Details given are : Present value of investment = $1000 Interest rate = 8% p.a. Time period = 5…

Q: Solve for the compound amount and compound interest at the end of 1 year if S7,000 is invested at 4%…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.