Answered: If the bank compounds interest…

Business

Accounting

If the bank compounds interest annually, how much will you have in your account on January 01, 2021?

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...

See similar textbooks

Related questions

Q: You wish to have $10,000 on August 1, 2026. You plan to to make monthly deposits into an account…

A: The question is based on the concept of Future value and annuity

Q: future value of your money in 17 years.

A: Future Values: Future value is the value that will be increased or decreased after a particular…

Q: Today is Jan.1, 2019. Starting today you plan to invest $3000 every year, first deposit today and…

A: Let's look at the entire problem in two parts.Part 1: Today is Jan.1, 2019. Starting today you plan…

Q: What will be the final balance at the end of year 23 if you make a deposit of 88,000 at the end of…

A: Future values refer to the concept of determining the future worth of current money deposits.

Q: January 1, 2022, you open a checking account with the same bank that you have your savings account.…

A: Applicable interest rate is 0.02% Bi monthly deposits are of $25 Time period is 1 year To Find:…

Q: Every year, on 1st January, starting in 2020 and ending in 2049 (so 30 payments), you deposit $1,000…

A: Here the customer has 30 times from (2020 to 2049) each year $1000, to receive $ 50000 at the end…

Q: If you deposit OMR 20555 in your account in a bank. Suppose the bank pays 8% compound interest…

A: We need to use future value formula given below to calculate future value of deposit FV =PV(1+i)n…

Q: You plan to deposit S500 in a bank account now and S400 at the end of the year. If the account earns…

A: The objective of the question is to calculate the balance in the bank account right after the second…

Q: You plan to deposit $500 in a bank account now and $600 at the end of the year. If the account…

A: Solution: The amount in account after second deposit will be the future value of first deposit and…

Q: Suppose you deposit $5,000 into an account at the end of 2021, $4,500 at the end of 2022, $4000 at…

A: Here in this question, we are required to calculate how much amount will be accumulated after last…

Q: Suppose you deposit $1,500.00 into and account 7.00 years from today into an account that earns…

A: Future value is an estimated value of a current asset at an assumed growth rate over a certain…

Q: If you deposit $287.50 into an interest-bearing savings account today, what rate of interest must be…

A: Deposit amount = $287.5Amount after 14 years = $650.01A = P ( 1+r)nP = principal = $287.5r = rate…

Q: Your bank offers 3 percent annual interest onsavings deposits. If you deposit $560 today, howmuch…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Suppose $1,000 is deposited in a bank account today (time 0), followed by $1,000 deposits in years…

A: Given amount of deposit = $1,000 Rate of interest = 6%

Q: A person deposits $2000 every year into an account which has an interest rate of 2.5% annually. If…

A: This problem is based on the concept of the time value of money, which states that a sum of money…

Q: You deposit $296 today into a bank account that earns 12% annually. How much will be in your…

Q: e. Suppose you can deposit only $200 each January 1 from 2019 through 2022 (4 years). What interest…

A: Annual Deposit = 200 Future Value = 1000 Beginning of period deposits Time Period = 4 years Annual…

Q: A person deposits an amount of 500 dinars on the tenth day of each month of the year 2020, and if…

A: Annuity means finite no. of payments which are same in size and made in equal time intervals. Person…

Q: if you deposit $17,000 in the bank today, you will be able to withdraw $24,000 from the account in…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: It is now January 1, 2018, and you will need $1,000 on January 1,2022, in 4 years. Your bank…

A: a) Face Value=1000Number Of Years=4rate=8%Present Value Of Amount to be Deposit Today…

Q: Every year on 1st January between 2020 and 2049 inclusive (so 30 times), you deposit $1,000 into a…

A: Future value refers to the value of the investment after compounding interest. Interest is the…

Q: Your bank account pays a nominal interest rate of 8%, compounded quarterly. You deposit $500 in the…

A: Here, Deposit today is $500 Deposit at the end of first year is $1,000 Interest Rate is 8%…

Q: You plan to invest an amount of money in a certificate of deposit (CD) at your bank. The stated…

A: Compound Interest is also called interest on interest. It is the addition of interest in the…

Q: how much is in the account immediately after the deposit on January 1, 2025?

A: Time value of money ( TVM) means that the amount of money received in the present period will have…

Q: On March 1, 2021, you opened an account with a deposit of $500. You plan to continue to make $500…

A: The future value of money is an important concept of financial management. This shows the future…

Q: if you deposit $190, $250, and $300 in a savings account at the end of the years 2017, 2018, and…

A: Money at the end of 2017 =$190

Q: If you make monthly deposit of $2360 into your savings account for next 23 years what return rate…

A: Using excel Rate function

Q: Suppose you want to have $400,000 for retirement in 35 years. Your account earns 9% interest. a) How…

A: Answer 3 Future value = $400,000 Number of monthly deposit, n =35*12=420 Interest rate per period,…

Q: You wish to deposit $500 dollars per year. The first deposit will be on April 1, 2017, and your…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Question

If the bank compounds interest annually, how much will you have in your account on January 01, 2021?

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

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 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, accounting and related others by exploring similar questions and additional content below.

Similar questions

Every year, on 1st January, starting in 2020 and ending in 2049 (so 30 payments), you deposit $1,000 into a bank account. What rate of return would you need to earn on the account so that on 31st December 2049, just after that year's interest was paid into the account, you had $50,000 in the account?
You wish to have $10,000 on August 1, 2026. You plan to to make monthly deposits into an account with pays 5% monthly. Your first deposit will be on March 1, 2019, and your last will be on February 1, 2021. What are the size of your deposits?
You plan to deposit S500 in a bank account now and S400 at the end of the year. If the account earns 4% interest per year, what will the balance be in theaccount right after you make the second deposit?
You plan to deposit $500 in a bank account now and $600 at the end of the year. If the account earns7% interest per year, what will be the balance in the account right after you make the second deposit?
A person deposits $2000 every year into an account which has an interest rate of 2.5% annually. If this person made their first deposit on August 1, 2000 and plans to make their last on August 1, 2029. How much will be in the account on August 1, 2030?
if you deposit $190, $250, and $300 in a savings account at the end of the years 2017, 2018, and 2019 respectively how much money will be there in the account at the end of 2019 if you earn an interest of 5.3% per year on your savings?
You wish to deposit $500 dollars per year. The first deposit will be on April 1, 2017, and your last deposit will be on April 1, 2026. How much will be in the account on April 1, 2050 if the bank pays 4% annually?
January 1, 2022, you open a checking account with the same bank that you have your savings account. This bank gives you a bonus of 0.01% on your savings account, so you now have 0.02% interest on your savings account. You still are going to deposit $25 each paycheck twice a month into the savings and are not going to make any withdrawals. How much money will you have at the end of this year?
On March 1, 2021, you opened an account with a deposit of $500. You plan to continue to make $500 deposits every year until March 1, 2040, when you will make your last deposit. How much will be in the account on March 1, 2050 if the account earns 5% annually?
Today is Jan.1, 2019. Starting today you plan to invest $3000 every year, first deposit today and last deposit on Jan. 1, 2040. After that, you plan to leave the money in the same account until Jan. 1, 2060. However, the interest rate is 8% compounded quarterly until your last deposit and only 6% compounded annually after that. How much money will you have in your account on Jan. 1, 2060?
You decide to make monthly $2000 deposits into an account that pays 4% compounded monthly. If your first deposit was on January 1, 2019, then how much is in the account immediately after the deposit on January 1, 2025?
If you deposit OMR 20555 in your account in a bank. Suppose the bank pays 8% compound interest yearly. you are required to calculate future value of your money in 7 years.