If P10,000 is deposited in a bank for 10 yrs at an interest rate of 7% compounded quarterly, determine: a. the total amount at the end of 10th yr; b. yearly increase of the investment; and c. effective rate of interest
Q: Standard Chartered Bank Berhad pays 7 percent annual interest on its fixed deposit account, whereas…
A: Deposit = 5000 Standard Chartered Bank Annual Rate = 7% Time Period (N) = 8 years UOB Bank…
Q: Deposits of Php 1500 each were made in a sinking fund at the end of each year. If the fund earned…
A: Deposit each month = 1500 End of year deposits Interest Rate = 6% Future Value after seventh deposit…
Q: What lump sum of money must be deposited into a bank account at present time so that $1,50 can be…
A: In this we have to calculate present value of cash flow withdrawal.
Q: Suppose an individual makes an initial investment of $2500 in an account that earns 7.8%. compounded…
A: Given information: Initial investment is $2,500 Interest rate is 7.8% Number of periods is 12 made…
Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…
A: A sum of money is worth more now than it will be at a later time due to its potential for profits in…
Q: 10,000 was deposited in the bank every end of the year for 10 consecutive years. Then the sum of all…
A: In this we need to calculate the future value factor and find out the future value of sum.
Q: $15,000 is deposited for 7 years in an account earning 3% interest. (Round your answers to two…
A: Compound value of money can be defined as the amount of interest computed on interest earned…
Q: a. Calculate the future sum of P5,000, given that it will be held in the bank five years at an…
A: Note 1)It is a case where no sub-part is specified to solve among the multiple sub-parts posted, so…
Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 18,000$ is deposited for 9 years in an account earning 5% interest. Round answers to two decimal…
A: The future value of an amount deposited in the account is the value of the amount deposited on a…
Q: What is the total amount available upon the deposit of the sixth payment if P500.00 is invested at…
A: Here an amount of 500 is being deposited each year for 6 years and we have to find the total amount…
Q: $7000 are invested in a bank account at an interest rate of 5 percent per year. Find the amount in…
A: To find the amount after certain period we have to use the compound interest formula : A = P 1+r100n…
Q: Determine the value at the end of five years of a $7,000 investment (today) in a bank certificate of…
A: Future Value = Present Value * (1+rate)^n Where, Rate = 9%/2 = 0.045 n = no. of compounding period =…
Q: An initial investment of $480 earns interest for 7 years in an account that earns 13% interest,…
A: Future Value = Present Value * (1+r)^n where r =rate of interest per period i.e. 13%/4 = 3.25% n =…
Q: Your bank pays 8% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…
A: Future value refers to the future worth of a present sum whereas the future value of an annuity is…
Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:
A: Future value = Present value(1 + Rate)^Time
Q: If Php 1,000 becomes Php 1,811.36 after 5 years when invested at an unknown rate of interest…
A: Deposit amount = Php. 1000 Future value = Php. 1811.36 Period = 5 Years
Q: At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual…
A: Time value of money is a financial concept, where the current value of the funds is worth more than…
Q: (a) Complete the table below for an investment of N$25,000.00 in the bank for 5 years earning 8.5%…
A: Investment =N$25,000.00 years =5 Interest Rate = 8.5% To use compounding daily we have to divide…
Q: If 6000 dollars is invested in a bank account at an interest rate of 8 per cent per Find the amount…
A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…
Q: Determine the present value of the following cash flows; P4,000 at the end of 4th month and every…
A: Given information= P4000 at the end of 4th month and every month thereafter till the 12th Month…
Q: Your bank pays 4% interest, compounded semiannually. Use Table 12-1 to find the future value (in $)…
A: Future value of annuity due factor (r, n) = Future value of ordinary annuity factor (r, n) * (1+r) r…
Q: $100 is deposited in the bank and remains in the account for three years, earning 6% per year with…
A: Here, Initial Deposit Amount is $100 Interest Rate is 6% Interest Method is Simple Interest Method.
Q: What lump sum of money must be deposited into a bank account at present time so that $1,500 per…
A: Semi annual withdrawal = $ 1500 Period = 10 Years Number of withdrawals = 10*2 = 20 First withdrawal…
Q: Calculate the compounded interest after 7 years and 9 months if 500,000 is placed at an annual rate…
A: a) Amount invested (A) = 500,000 n = 7 years 9 months = 93 months r = 11.28% per annum = 0.94% per…
Q: A bank pays a stated annual interest rate of 8 percent. What is the effective annual rate using the…
A: In the given question we require to compute the effective annual rate if annual interest rate is 8%.
Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…
A: Present value (PV) is $39,000. The semi-annual rate (r) is 3% (6% / 2). The number of compounding…
Q: A principal of 7000 Rial is invested at rate 9% interest for 8 years. Determine the future value if…
A: In this question future value is to be find out. Future value is the value of an asset which grows…
Q: 18,000$ is deposited for 9 years in an account earning 5% interest. Round answers to two decimal…
A: Future Value The future value is the worth of any asset or any sum of money at a future date when…
Q: The amount of $7,000 is invested in a certificate of deposit (CD) and will be worth $16,000 in nine…
A: Invested amount=$7000Worth in 9 years=$16000
Q: If an amount of $10,000 is deposited into a savings account at an annual interest rate of 4%,…
A: Here in this question we are required to calculate the compounded interest of investment after 8…
Q: Regular quarterly payments of $6000 are deposited into an account paying 3.19% interest, compounded…
A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…
Q: promises to quadruple your investment over a period of 15 years based on semi-annual compounding.…
A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…
Q: A bank applies a semi-annually capitalized nominal rate of 11.8% for an investment. Calculate…
A: The effective rate for any period refers to the actual proportionate cost which will be paid for…
Q: Person A deposits $ 1,000 in a bank account at the beginning of each year for 15 years. If the…
A: Future Value(FV) is worth of current amount at future point that is computed by compounding current…
Q: What principal amount is equivalent to a withdrawal of 10,600 on the 2nd year, 4,000 on the 4th…
A: Let the principal amount = P Withdrawal in year 2 (W2) = 10600 W4 = 4000 Deposit in year 5 (D5) =…
Q: On January 1, you deposited $6,000 in an investment account. The account will earn 10 percentannual…
A: 1. . 1 Future value =Present value * (1+Interest rate)No. of years…
Q: How much must be deposited at 6% each year beginning on January 1, year 1, in order to accumulate…
A: This is the question related to compound interest and Future Amount. We use Principal , Interest and…
Q: Assume that you invest $1000 for 15 years in an account that pays an interest rate of 7% per year…
A: Account value at the end of 15 years (if interest is calculated only on principal amount) is…
Q: at Php2
A: Given information :
Q: For a sum of money interetsed at 4% compunded semi- annually for 5 years. a) nominal rate of…
A: a) Nominal rate of interest is the stated rate on the investment Nominal rate of interest “j” = 4%…
Q: Determine the value at the end of three years of a $10,000 investment (today) in a bank certificate…
A: The formula to calculate future value is given below:
Q: An amount of ₱234,000 is deposited in a bank paying an annual interest rate of 6.15%, compounded…
A: Solution:- Continuous compounding means that the interest is getting compounded every moment. Future…
Q: If $1,500 is deposited in a savings account at the beginning of each year for 20 years (a total…
A: The formula to compute future equivalent worth of present value:
Q: $39,000 is deposited for 2 years in an account earning 6% interest. (Round your answers to two…
A: Therefore, the future value if interest is compounded semiannually is $43,893.84.
Q: What is the accumulated value of periodic deposits of $3,000 made into an investment fund at the…
A: Information Provided: Periodic payment = $3000 Interest rate = 4.75% compounded semi-annually Years…
Step by step
Solved in 2 steps
- Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate of 6% for 5 years. How many times is compunding done in a year. What is the initial or rincipal amount. then what is the rate of interest?What is the total amount available upon the deposit of the sixth payment if P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%? (cashflow only)a. Calculate the future sum of P5,000, given that it will be held in the bank five years at an annual interest rate of 6 percent. b. Recalculate part (a) using a compounding period that is (1) semi-annual and (2) bimonthly. c. Recalculate parts (a) and (b) for a 12 percent annual interest rate. d. Recalculate part (a) using a time horizon of 12 years (annual interest rate is still 6 percent). e. With respect to the effect of changes in the stated interest rate and holding periods on future sums in parts (c) and (d), what conclusions do you draw when you compare these figures with the answers found in parts (a) and (b)?
- The annual amount $1,100 is invested in Certificate Deposit (CD) and will be worth of $16,000 in nine years. What is the semiannually compounded nominal (annual) interest rate for this CD?suppose that $47,700 is invested in certificate of deposit for 3 years at 6.2% annual interest to be compounded daily. how much interest will this investment earn?Determine the amount of money in a savings account at the end of 5 years, given an initial deposit of AED 40,000 and 8 percent annual interest rate when interest is compounded (a) annually, (b) semiannually, and (c) quarterly.
- i. 100 is deposited into an account at the beginning of every 4-year period for 40 years.The account credits interest at an annual effective rate of i.The accumulated value in the account at the end of 40 years is X, which is 5 times the accumulated value at the end of 20 years.Calculate Xii. An investment requires an initial payment of 10,000 cedis and annual payment of 1000cedis at the beginning of each year for ten years. Starting at the end of the eleventh year, the investment returns five equal payment of X.Determine the value of X to yield an annual effective rate of interest at 10% over the 15-year period.(B) i. The present value of a series of $5 at the beginning of the investment periodDetermine the value at the end of three years of a $10,000 investment (today) in a bank certificate of deposit (CD) that pays a nominal annual interest rate of 8 percent, compound.a. Semi-annuallyb. Quarterly c. Monthly2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is the amount in the account after 1 year if the account is: a. compounded annually b. compounded semi-annually c. compounded quarterly d. compounded monthly e. Which is advantageous to the investor?
- A deposit of $2500 is made into an account drawing 3.6% interest compounded monthly. Find the future value 15 years after the initial depositYou deposited P5,000 from the savings of your daily allowance in a time deposit account with your savings bank at a rate of 1.5% per annum. This will mature in 6 months. Compute the annual interest, total interest, and amount to be received or paid at the end of the term for this scenario above using a simple interest assumption and compound interest assumption.An amount of money P is deposited in a savings account that pays interest at a rate of r percent per year compounded quarterly; the principal and accumulated interest are left in the account. Find a formula for the total amount in the account after n years.