Find the interestThomas has $1,000 in his bank account today to spend on a TV in one year.Thomas needs exactly $1,030 to purchase a new TV in one year (the price of the new TV in one year will be $103The investment he is looking for should have how much interest?$1,000?1$1,030PrincipalPresent Value:Value of themoney sheinvested todayInterest RateAnnual Rate?PeriodNumber oftimesinterest iscalculatedInterest ReceivedCash earned onthe initial cashinvestedValue of Investment$1,030 Future Value

Particulars Values Present value $ 1000.00 Periodic deposits 0.00 Future value $ 1,030.00…

Answered: Find the interest Thomas has $1,000 in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Raymond wants to save the college tuition fees his child will need in ten years by starting with a deposit of $7,500 today and depositing another $200 at the beginning of each month. How much will Raymond have in ten years if he gets a rate of return of 4% per annum? a. $37,201 b. $39,057 c. $40,537 d. $40,441
(Related to The Business of Life: Saving for Your First House) (Future value) You are hoping to buy a house the future and recently received an inheritance of $18,000. You intend to use your inheritance as a down payment o your house. a. If you put your inheritance in an account that earns 8 percent interest compounded annually, how many years will be before your inheritance grows to $34,000? b. If you let your money grow for 10.25 years at 8 percent, how much will you have? c. How long will it take your money to grow to $34,000 if you move it into an account that pays 4 percent compounded annually? How long will it take your money to grow to $34,000 if you move it into an account that pays 13 percent? d. What does all this tell you about the relationship among interest rates, time, and future sums? it be before your inheritance grows to $34,000? 8.26 years (Round to one decimal place.) b. If you let your money grow for 10.25 years at 8 percent, how much will you have? (Round to the…
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Financial Math, question One: Ryan purchased an annuity that had an interest rate of 2.75% compounded semi-annually. It provided her with payments of $2,000 at the end of every month for 6 years. If the first withdrawal is to be made in 4 years and 1 month, how much did she pay for it? question two: Allison invested her savings in a bank at 4.25% compounded quarterly. How much money did she invest to enable withdrawals of $3,500 at the beginning of every 6 months from the investment for 6 years, if the first withdrawal is to be made in 12 years?
Excel Master It! Problem This is a classic retirement problem. A friend is celebrating her birthday and wants to start saving for her anticipated retirement. She has the following years to retirement and retirement spending goals: Years until retirement: 30 Amount to withdraw each year: $90,000 Years to withdraw in retirement: 20 Interest rate: 8% Because your friend is planning ahead, the first withdrawal will not take place until one year after she retires. She wants to make equal annual deposits into her account for her retirement fund. If she starts making these deposits in one year and makes her last deposit on the day she retires, what amount must she deposit annually to be able to make the desired withdrawals at retirement? Suppose your friend just inherited a large sum of money. Rather than making equal annual payments, she decided to make one lump-sum deposit today to cover her retirement needs. What amount does she have to deposit today? Suppose…
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Find the payment Thomas has started working, and he is wondering how much he needs to put aside every month to purchase a TV IN 2 YEARS. Thomas needs exactly $3,275 to purchase a new TV. The money he puts aside he will earn interest every month. The interest is compounded monthly.\ The annual interest is 6% $0 24 Principal Present Value: Value of the money she invested today Payment: how much will paid per month Interest Rate Periods Number Annual Rate of times ? interest is calculated 3,275.00 Value of Investment 3,275.00 Future Value
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