How much will Larissa have in her savings account 10 years from now, if she deposits the $5817 that her grandfather gave her at 5% interest rate, compounded annually? Round your answer to 2 decimal places and do not enter any symbols such as $, % or commas. Answer: 8725.50

How much will Larissa have in her savings account 10 years from now, if she deposits the $5817 that her grandfather gave her at 5% interest rate, compounded annually? Round your answer to 2 decimal places and do not enter any symbols such as $, % or commas. Answer: 8725.50

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

See similar textbooks

Related questions

Q: How many internal rate of return IRRS (the maximum) are suggested by Descartes' rule of signs? $300…

A: For unconventional cash flows, Descartes' Rule of Signs states that the maximum number of Internal…

Q: o Describe in detail how you are financing your college education. Include sources like…

A: Financing college education is a dynamic process involving a strategic blend of scholarships, loans,…

Q: A 3-year 8% coupon bond currently sells for $90. A 3-year 4% coupon bond currently sells for $80.…

A: Here,First Bond is 8% 3 year Bond with current price $90 and par value $100Second Bond is 4% 3 year…

Q: Suppose that the S&P 500, with a beta of 1.0, has an expected return of 12% and T-bills provide…

A: The objective of the question is to calculate the expected return and beta of portfolios constructed…

Q: What is the return (%) that can be made from correctly exploiting the mispricing given these three…

A: The exploitation of mispricing means taking advantage of profitable opportunities due to the…

Q: NPV: Basic Concepts Buena Vision Clinic is considering an investment that requires an outlay of…

A: Net Present value is the measure to evaluate the profitability and feasibility of the project or the…

Q: Which of the following intangible assets should not be amortized? a. Copyrights b. Customer lists…

A: Intangible assets are non physical assets that lack a physical substance but hold economic value for…

Q: Eukalayle Corporation's financial statements are provided here. Balance Sheet as of December 31,…

A: Free cash flow refers to the cash which is generated by the business after considering the cash…

Q: 2. Term structure premium, an inflation of bond and bond default premium are included in A. risk…

A: A bond includes various risks like(i) Term structure risk or maturity risk(ii) Inflation risk(iii)…

Q: A 1-year-old defender has a current market value of $ 5,000. Its operating and maintenance expenses…

A: Making judgments about capital budgeting entails assessing and choosing capital expenditures or…

Q: You and 11 coworkers just won $14 million ($1, 166,666.67 each) from the state lottery. Assuming you…

A: The present value is the current value of the cash flow. It can be determined by discounting it with…

Q: Suppose that zero interest rates with continuous compounding are as follows: Maturity(years) Rate (%…

A: Maturity (Years)Rate (% per annum)12.0%23.0%33.7%44.2%54.5%

Q: The Sun Devils Corporation is deciding which of two forecasting models to use. The forecasts for the…

A: The objective of the question is to determine which of the two forecasting models is better based on…

Q: Tiger Golf Supplies has $34 million in earnings with 8 million shares outstanding. Its investment…

A: The objective of the question is to calculate the price per share that should be offered to the…

Q: La Reina de Oriente, S.A., a company that sells sausages, knows that it pays its suppliers 10 times…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Pls help ASAP

A: The disposition effect refers to a tendency among investors to sell winning positions too early…

Q: assume that the one - year interest rate is 4.0 percent in the united states; the sp exchange rate…

A: One year US interest rate = 4%Forward Rate = $1.16Spot Rate = $1.25

Q: The balance sheet for Larry Underwood Motors shows a book value of stockholders' equity (book value…

A: The market value of shares refers to the actual price that the investor is willing to pay for…

Q: Complete the following: Invoice Mar. 27 Date goods are received Terms 3/10 EOM Last day of discount…

A: If the invoice date is March 27andthe goods are received on that day, the terms are 3/10.This means…

Q: The owners of a corporation are called O partners O bondholders government agents shareholders

A: When you buy shares of a company, you become the owner of the company in proportion to the…

Q: priced to offer a 8.0 percent yield to maturity. You believe that in one year, the yield to maturity…

A: Coupon rate = 6.50%Years to maturity = 10 yearsYTM = 8%YTM after 1 year = 7%

Q: 15. In the figure at right, label curves A and B respectively, % frequency B Al Foreign cash flow…

A: Hedging is a risk management approach utilized in different sectors, such as finance, agriculture,…

Q: n of the following are owned by a company and can be used to secure a mortgage bond? Multiple Choice…

A: Assets can be used to secure a mortgage bond.

Q: Ime that 7% and that its dividend yield is 8%. C&J is about as risky as the average firm in the…

A: Constant growth rate = 7%Dividend yield = 8%Dividend (D0) = $1.5Growth rate in year 1 (G1) =…

Q: C3 233555- 3 24 4 25 5 26 6 27 7 28 A Age 0 =F3 -F4 -F5 -F6 6.1% B Beginning Balance 0.061 -$C$3…

A: The practice of progressively repaying a loan or debt through regular, planned installments is known…

Q: As of 2021, banks in the U.S. had an average ratio of equity to assets ratio of Ⓒa. 10% b. 20% c.…

A: The equity-to-assets ratio, a fundamental financial metric, gauges the proportion of a company's…

Q: Your older brother turned 35 today, and he is planning to save $7,000 per year for retirement, with…

A: The objective of this question is to determine how much your brother can spend each year after he…

Q: 1. Here are some historical data on the risk characteristics of Ford and Harley Davidson. Ford…

A: Standard deviation defines the scatteredness of data from its mean value which reflects the high…

Q: Pls help ASAP

A: Index funds are fund which replicate a particular index and try to generate same return.Exchange…

Q: ing the reconstruction of a mountain road. The vehicle traffic increases each year; hence the…

A: The question addresses a cost-benefit analysis for the reconstruction of a mountain road by the…

Q: Suppose you have a project that has a 0.5 chance of tripling your investment in a year a a 0.5…

A: Standard deviation describes the dispersion of data from its mean value. high standard deviation…

Q: uppose that Kaka Plc currently is selling at $50 per share. You buy 900 shares using $22,050 of your…

Q: The risk-free rate is currently 8.4%. Use the data in the accompanying table for the Fio family's…

A: The Sharpe ratio refers to the measure of the risk-adjusted return to ascertain the compensation…

Q: Pls help ASAP

A: Since multiple questions are asked, the first one is alone answered. For the rest of the answer,…

Q: You have taken a loan of $78,000.00 for 20 years at 4.9% compounded quarterly. Fill in the table…

A: An amortization table, also known as an amortization schedule, is a financial summary that displays…

Q: 1. A pilot plant for conducting research related to reverse osmosis concentrate recovery via lime…

A: Present worth is equivalent value of all cost and benefits of the projects and one method of capital…

Q: Stock Y has a beta of 1.2 and an expected return of 14.5 percent. Stock Z has a beta of 0.7 and an…

A: Reward to risk ratio can be calculated as:Reward-to-risk ratio = (Expected return - Risk-free rate)…

Q: What is a currency board? Describe the strict rules about the composition of reserves and domestic…

A: An extreme variation of a pegged exchange rate is a currency board. This monetary authority is…

Q: stock refers to issued stock that is currently held by stockholders. O Authorized O Outstanding O…

A: Stock refers to the persons who can claim from the profits earned by the company and they attain the…

Q: The sales budget for your company in the coming year is based on a quarterly growth rate of 10…

A: Cash collection from sales refers to the amount of cash received from the sales of goods or services…

Q: Question 1/[a]. Consider some bonds with one annual coupon payment of 7.25%. Thebonds have a par…

A: Yield to call refers to the rate of return that an investor expects at the time or period, the bond…

Q: Debbie is 22. She wants to invest part of her monthly salary in order to have $760,000 when she…

A: Compound = Monthly = 12Future Value = fv = $760,000Time = t = (66 - 22) * 12 = 528Interest Rate = r…

Q: Generally, managers of corporations prefer internally generated cash to finance their capital…

A: The preferences of corporate managers when it comes to financing capital expenditures

Q: Consider the following information State of Economy Probability of State of Economy Boon Rate of…

A: State of EconomyProbabilityStock 'A ReturnStock'B ReturnStock' C…

Q: Which of the following is an accurate statement regarding the filing of a joint tax return for…

A: The objective of the question is to identify the correct statement regarding the filing of a joint…

Q: A company plans to make four annual deposits of $4,250 each to a special building fund. The fund's…

A: Accumulated value refers to an amount that is the addition of periodic deposits and interest rate…

Q: Reno Revolvers has an EPS of $1.80, a free cash flow per share of $4.10, and a price/free cash flow…

A: EPS = $1.80Free cash flow per share = $4.10Price/free cash flow ratio = 6.0.

Q: A firm is considering an investment in a new machine with a price of $16.3 million to replace its…

A: Net present value refers to the method of capital budgeting used for calculating the difference…

Q: Focus Drilling Supplies has been growing steadily over the last 20 years. With increased exploration…

A: Throughout the course of the investment, variable interest rates change and investments with…

Q: Find the present values of the following cash flow streams. The appropriate interest rate is 12%.…

A: The objective of the question is to calculate the present value of two cash flow streams (A and B)…

Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

How much will Larissa have in her savings account 10 years from now, if she
deposits the $5817 that her grandfather gave her at 5% interest rate,
compounded annually?
Round your answer to 2 decimal places and do not enter any symbols such as
$, % or commas.
Answer: 8725.50

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction to time value of money

VIEW

Step 2: Computing the future value

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 1 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

A local bank will pay you $135 a year for your lifetime if you deposit $3,000 in the bank today. If you plan to live forever, what interest rate is the bank paying? Note: Enter your answer as a percent rounded to 2 decimal places. Interest rate %
You deposit your inheritance of $500,000 into an account earning 5.3% interest per year compounded monthly. You intend to withdraw a fixed amount monthly for 16 years. What amount can you withdraw monthly in order to empty the account in the 16 years? Give the answer to 2 decimal places, and do not use the $ sign in the answer box. Blank 1. Calculate the answer by read surrounding text. dollars
When you were born, your dear old Aunt Minnie promised to deposit OMR500 into a savings account bearing a 5% compounded annual rate on each birthday, beginning with your first. You have just turned 21 and want the dough. However, it turns out that dear old (forgetful) Aunt Minnie made no deposits on your fifth and eleventh birthdays. How much is in the account right now? Select one: O à. OMR16,768.19 O b.OMR15,953.74 O c. OMR17,859.63 O d. OMR21,000.00 e. OMR10,500.00
Grandma Patt has decided to open a savings account for her newborn granddaughter. The savings account pays 3% interest. If Grandma Patt wants there to be $10,000 in the account in 18 years, how much should she deposit today? Assume no other deposits or withdrawals. a) $5,873.95 b) $17,024.33 c) $8,362.17 d) $10,609.23
Saul Goodman tells you that you inherited $250,000 from your Great Aunt Birgit. Under Saul's advice, you invest your inheritance into an ordinary annuity that pays out $5,000, monthly, et 4 compounded monthly. How many vears will it take for the inheritance to be depleted? Round vour answer to 2 decimal olaces.
Engr. Marquez wants to get from her bank account P29,120.84, 12 years from now. How much should she invests for three consecutive years (annually) starting this year if the interest rate is 0.23? "Use 4 decimal places
Sara wants to have $530,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 9%, to ensure that she has $530,000 in 18 years time? OA. $112,357 OB. $202,243 OC. $119,492 O D. $157,300
Sammie Jo wants to begin saving for her retirement in 35 years. She researched and found an annuity that pays 5.25% interest, compounded quarterly. She is undecided on her monthly payment. Use your TVM solver to find her future value of the following monthly payments into her annuity. a) $750 N: P/Y: I%: C/Y: PMT: End or Begin FV: $207,935.65 $307,321.35 $921,964.04 1,000,000.00
you deposit OMR 8141 in your account in a bank. Suppose the bank pays 8% compound interest half yearly. Calculate future value of your money If in 5 years. Select one: O a. 11961.57 O b. All the given choices are not correct O c. 12050.63 O d. 9904.75 O e. 17575.60
Walter deposits S380.89 each month into an annuity account for his child's college fund in order to accumulate a future value of $90,000 in 15 years. How much of the $90,000 will Walter ultimately deposit in the account, and how much is interest earned? Round your answers to the nearest cent, if necessary. Formulas AnswerHow to enter your annwer fopens in new window Keypad Keyboard Shortcuts Amount Walter will deposit: S ev Ne Interest earned: $
Andre Castello owns a savings account that is paying 2.5% interest compounded annually His current balance is $7.598.42. How much interest will he earn over 5 years if the rate remains constant? Select one: a. $998.49 b. $8596.91 c. $949.80 d. $882.52
You want to have $46,000 in your savings account 6 years from now, and you're prepared to make equal annual deposits Into the account at the end of each year. If the account pays 7.7 percent Interest, what amount must you deposit each year? Multiple Choice O O $3,542.02 $3,541.98 $7,666.67 $6.318.12 $9,797.42