If you deposit $500 in a savings account that offers3 percent interest, compounded annually, and youdon’t withdraw any money, how much moneyshould you expect to have in the account at theend of three years?

If you deposit $500 in a savings account that offers3 percent interest, compounded annually, and youdon’t withdraw any money, how much moneyshould you expect to have in the account at theend of three years?

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: You deposit $5000 each year into an account earning 3% interest compounded annually. How much will…

Q: If you deposit $250 each month into an individual retirment account that earns 4.8% interest…

Q: You deposit $400 each month into an account earning 6% interest compounded monthly. How much will…

A: FV of annuity=P1+rn-1rwhere,P=Periodic paymentr=rate per periodn=number of periods

Q: b._ You want to have GH¢ 50,000 in your savings account five years from now, and you’re prepared to…

A: Future value of annuity = P * ([1 + I]N - 1 )/I where P is the payment amount. I is equal to the…

Q: You deposit $7,000 into an account earning interest at a 7% APR. You keep the money in the account…

A: Initial deposit = $7,000 Interest rate = 0.07 or 7% Period = 5 years Money in account at the end of…

Q: You deposit $10,000 in a bank that pays an annual interest rate of 6% compounded quarterly how much…

A: We need to use compound interest formula for calculation of amount after 5 years A=P(1+r)n Where…

Q: If you deposited $18000 and the bank is paying 7% interest compounded monthly, how much would be…

A: We know that the formula to calculate the accumulated value of cash flow is C*(1+r)n, where C is the…

Q: If you deposit $8700 today in an account that pays 8.5% per year, compounded quarterly, how much…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: How much would you need to deposit in an account right now in order to have $2,000 in the account in…

A: Amount = $2,000 = A Time period = 10 years = T Interest rate = 2% = R Compounded monthly where it…

Q: If you initially invest $2200 in an account that earns 2.25% interest compounded continuously, how…

A: Initial investment (P) = $2200 Interest rate (r) = 2.25% Period (t) = 3 Years Mathematics constant…

Q: Suppose you deposit $2,500 at the end of year 1, nothing at the end of year 2, $750 at the end of…

A: Here, Interest rate =15% compounded annually To Find: Future value at the end of 5 years =?

Q: You are planning to make annual deposits of $3,600 into a retirement account that pays 8 percent…

A: The company will invest in another company to earn profits from the investments. The company will…

Q: you deposit $1,000 each year into an account earning 3% interest compounded annually. How much will…

A: Time value Value received today by an individual is of more worth than receiving the exact value in…

Q: You deposit $4000 in an account earning 3% interest compounded monthly. How much will you have in…

A: The amount after 10 years will be the future value of the initial deposit.

Q: If you deposit $5000 into an account, how many years will it take for the account to be worth $9350…

A: Future Value = Present Value * (1+Interest %)^Time Period Since Semi Annual Compounding, interest…

Q: You have a bank deposit now worth $5000. How long will it take for your deposit to be worth more…

A: Interest is an additional amount which is earned on deposited amount for the period. It increases…

Q: ou deposit $300 in an account earning 6% interest compounded annually. How much will you have in the…

A: Amount Deposited = $300 Interest Rate(r) =6% Years(N) =10

Q: You deposit $825 today in a savings account that pays 3.5% interest, compounded annually. How much…

A: Future value is the value of current value at a specified interest rate for given period. The…

Q: Suppose that you are to make annual deposit of $3,000 into a retirement account that pays 11%…

A: Future value of the amount is the worth of the current amount in some future specified date at given…

Q: You invest $4,000 in an account that pays a fixed annual rate of 6% interest compounded yearly. How…

A: In the present question we require to calculate the future value after 7 years from the following…

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: If you deposit $2,000 into an account at the end of each of the next 40 years, at 4.5% interest, how…

A: It can be solved using In excel FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate for the…

Q: What is the amount a person would need to deposit today to be able to withdraw $6,000 each year for…

A: Present value (PV) is the current value of future money or cash flows at a specified rate of return.…

Q: You will need $46000 for a down payment on a house in 9 years. How much should you deposit in a…

A: Present value refers to the current worth of the amount that is expected to be received in future…

Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…

A: Future value is the expected value of annual deposit to be made at specified interest rate. Given:…

Q: How much will you have in the account 30 years from now ? What is the interest earned on the…

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 7% interest…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: Suppose you deposit $1,000 today in an account that pays 5% interest at the end of each year. If…

A: Here, Deposit Amount is $1,000 Interest Rate is 5%

Q: You deposit $3000 each year into an account earning 2% interest compounded annually. How much will…

A: Annual deposit (P) = $ 3000 Annual interest rate(R) = 2% Period (N) = 35 Years

Q: If you deposit $13,.224 annually at the end of every year in a bank account paying 8% annually. how…

A: Annual deposit (D) = $13,224 Period (n) = 5 Years Interest rate (i) = 8% (or 0.08) Amount saved at…

Q: You deposit $3500 in an account earning 2% interest compounded quarterly. How much will you have in…

A: Deposit amount (P) = $3500 Interest rate = 2% Quarterly interest rate (r) = 2%/4 = 0.50% Period = 18…

Q: If you initially invest $3500 in an account that earns 4.7% interest compounded daily, how much will…

A: Initial investment (PV) = $3500 Interest rate (r) = 4.7% Number of compounding per year (m) = 365…

Q: You deposit $300 each quarter into an account earning 5.8% interest compounded quarterly. a) How…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: You plan to withdraw the amounts given below over the next five years from a savings account that…

A: GIVEN, R=9% YEAR CASHFLOW 1 0 2 24000 3 14000 4 26000 5.00 42000

Q: You deposit $200 each month into an account earning 8% interest compounded monthly. Round to the…

A: Answer b) Total amount put by us in account: = Amount monthly invested * 12 * number of years =…

Q: You deposit $500 each monthinto an account earning 3% interest compoundedmonthly. a) How much will…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You deposit $200 each month into an account earning 5% interest compounded monthly. How much will…

A: Future worth of the amount is referred as the worth of the currently deposited amount at some future…

Q: You deposit $3000 in an account earning 3% interest compounded monthly. How much will you have in…

A: Given:Deposit amount=$3000Rate=3% interest compounded monthly.To compute:Amount in account after 15…

Q: You deposit $3000 in an account earning 3% interest compounded monthly. How much will you have in…

A: Present value is $3,000. This amount earns interest at 3% interest rate that compounds monthly.…

Q: You deposit $5000 each year into an account earning 3% interest compounded annually how much will…

A: Amount we will have is future value of yearly payments future value is calculated using fv function…

Q: You deposit $100 each month into an account earning 8% interest compounded monthly. a) How much…

A: Annuity amount = $100 Monthly rate of interest = 0.6667% (8.00% / 12) Number of months = 300 months…

Q: Suppose I have the choice of investing $25000 in two different accounts: Acct 1: 4.5%…

A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…

Q: You

A: An annuity refers to a series of payments made at regular interval of time.

Q: You deposit $2000 in an account earning 8% interest, compounded quarterly. How much will you have in…

A: Principle P :- $2000 Time t :- 11 years Rate of interest r = 8% Compounded quaterly No. of intervals…

Q: Suppose a bank pays you 4% interest compounded quarterly. You deposited $10,000. How much will you…

A: If interest is computed on the actual loan amount, then it is simple interest. When the interest is…

Question

If you deposit $500 in a savings account that offers
3 percent interest, compounded annually, and you
don’t withdraw any money, how much money
should you expect to have in the account at the
end of three years?

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

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

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?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
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.
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
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.
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?
Suppose you currently have $4,800 in your savings account, and your bank pays interest at a rate of 0.47% per month. If you make no further deposits or withdrawals, how much will you have in the account in 6 years? In 6 years' time, you will have $________ in the account.
You think you will be able to deposit $4,000 at the end of each of the next three years in a bank account paying 10 percent interest. You currently have $7,000 in the account. How much will you have in 3 years? Respuesta:
If you deposit $250 into an account that earns 4.8% interest compounded monthly, How much will you have in the account 30 years from now ? What is the interest earned on the account ?
If you deposit $3,500today into an account earning an annual rate of return of 11percent, what would your account be worth in 35 years (assuming no further deposits)? In 40years? If you deposit $3,500 today into an account earning an annual rate of return of 11 percent, what would your account be worth in 35 years? $___________________ (Round to the nearest cent.)
Assume that you just deposited $1000 into a savings account that earns an interest rate of3% per year. How much will you be able to withdraw each year if you make your first annual withdrawal one year from today and your final withdrawal six years from today?
If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of 6%/year compounded monthly, how much will he have on deposit in his savings account at the end of 5 yr, assuming he makes no withdrawals during that period? (Round your answer to the nearest cent.) $ Need Help? Master It