Given below are the future value factors for 1 at 10% for one to five periods. Interest is compounded annually at 10%. Periods Future Value of 1 at 10% 1 1.100 2 1.210 3 1.331 4 1.464 5 1.611 If $ 16200 is deposited in a savings account today, what amount will be available three years from today? $ 16200 × 1.100 × 3 ($ 16200 × 1.100) + ($ 16200 × 1.210) + ($ 16200 × 1.331) $ 16200 × 1.331 $ 16200 ÷ 1.331

Given below are the future value factors for 1 at 10% for one to five periods. Interest is compounded annually at 10%. Periods Future Value of 1 at 10% 1 1.100 2 1.210 3 1.331 4 1.464 5 1.611 If $ 16200 is deposited in a savings account today, what amount will be available three years from today? $ 16200 × 1.100 × 3 ($ 16200 × 1.100) + ($ 16200 × 1.210) + ($ 16200 × 1.331) $ 16200 × 1.331 $ 16200 ÷ 1.331

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Help
Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year with annual compounding. Calculate the proportion of the total value of the account that can be attributed to interest-on-interest, at the end of 15 years. * 38.06% 36.24% 25.70% 0% 100%
You plan to withdraw the amounts given below over the next five years from a savings account that earns 9% interest compounded annually, how much do you need to deposit now? End of Year 1 $0.00 Year 2 $24,000.00, Year 3 $14,000.00 Year 4 $26,000.00 Year 5 $42,000.00
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?
2. What is the effective annual interest rate in each situation? Show and explain all supporting calculations. a. A savings account with 4% annual interest rate compounded daily (assume a year consists of 365 days)? b. A savings account with 4% annual interest rate compounded monthly?
Please answer the following
$100 is deposited each quarter for 5 years. What is the future value of the account if interest rate is 12% per year compounded monthly. a) $ 2695.76 b) $ 2735.27 c) $3095.24 d) $2534.35
What is the future value of the initial $10,000 deposit after 5 years? We assume current interest rate is = 6%, compounded monthly. $13,552.6 $13,512.5 $13,277.6 $13,488.5
3. Use the formula for computing future value using compound interest to determine the value of an account at the end of 10 years if a principal amount of $17,000 is deposited in an account at an annual interest rate of 4% and the interest is compounded quarterly. The amount after 10 years will be $_____ (Round to the nearest cent as needed.)
Assuming a 5% (0.05) interest rate, $500 invested today in a savings account today will be worth $525 in one year. What will that amount be in 2 and 3 years, and what is the total interest you will earn at the end of three years. Refer to the video in the information page for assistance in calculating simple interest. Year 2: $445.78 Year 3: $335.29 Total Interest: $98.75 Year 2: $551.25 Year 3: $578.81 Total Interest: $78.31 Year 2: $114.49 Year 3: $122.50 Total Interest: $22.50 Year 2: $222.70
Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a year.) p=$200, r=4%, t=5 years A. $10 B. $40 C. $160 D. $4
If an initial investment of $1,000 is invested at 8% interest per year with semi-annual compounding, how much would be in the account after five years? A. $1,081.60 B. $1,061.66 C. $1,051.00 D. $1,281.60 The difference between the present and future worth of money at some time in the future is called A. Discount B. Deduction C. Inflation D. Depletion