I need this financial accounting question If $8,000 is invested in a bank account atan interest rate of 5% per year, find theamount in the bank after 7 years if interestis compounded annually.

Step 1: Define Interest RateThe interest rate depicts the rate at which the bank offers to pay a…

Answered: If $8,000 is invested in a bank account…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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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.
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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.
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
Find the future value of $300 deposited at the beginning of every year, for 15 years if the bank pays 6% interest compounded annually.
Suppose that a person deposits $500 in a savings account at the end of each year, starting now, for the next 12 years. If the bank pays 8% per year, compounded annually, how much money will accumulate by the end of the 12-year period? Repeat Problem for an interest rate of 6.25% per year, compounded annually?
Use the appropriate formula to find the future value in dollars of $700 deposited at the beginning of every six months for 19 years if a bank pays 4% interest, compounded annually?
How much money must be deposited in a savings account each quarter in order to accumulate $10,000 at the end of 3 years, if the bank pays interest at rate of 3% per year, compounded monthly?
Suppose your bank pays 10% interest, compounded semiannually. Find out how much should be deposited now to yield an annuity payment of $400 at the end of every six months, for 4 years.
What lump sum of money must be deposited into a bank account at the present time so that $500 per month can be withdrawn for five years, with the first withdrawal scheduled for six years from today? The interest rate is 0.75% per month.
You deposit $10,000 in a bank that pays an annual interest rate of 6% compounded quarterly how much would your balance be after five years?

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If $8,000 is invested in a bank account at an interest rate of 5% per year, find the amount in the bank after 7 years if interest is compounded annually.