If you deposit OMR 8854 in your account in a bank. Suppose the bank pays 8% compound interest half yearly. Calculate future value of your money in 5 years. a. 13106.04 b. 13009.18 c. 19114.90 d. All the given choices are not correct

If you deposit OMR 8854 in your account in a bank. Suppose the bank pays 8% compound interest half yearly. Calculate future value of your money in 5 years. a. 13106.04 b. 13009.18 c. 19114.90 d. All the given choices are not correct

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: If you deposit OMR 12200 in your account in a bank. If your bank pays 8.15% interest, how much will…

A: The value of a current asset at a future date based on an expected rate of growth is known as future…

Q: A bank account earns 6% simple interest. If you deposit $1,000 and then do not make any additional…

A: We need to calculate future value of $1,000 deposited today at 6% simple interest after 5 years.…

Q: 7. Assume that today you made an initial deposit in the amount of $16,000 into a savings account…

A: Future value of an initial deposit paying simple interest is calculated using following equation…

Q: You need to turn $11,827 dollars into $18,864 dollars in 7 years. Assuming you make no extra…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: You have $200.00 in your bank account today. Your bank offers a nominal annual rate of 16%,…

A: Information Provided: Present value = $200 Interest rate = 16% compounded quarterly Term = 8 years

Q: Assume you deposit $4,200 at the end of each year into an account paying 10 percent interest. a. How…

A: The fixed periodic regular payments/deposits made at each periodic interval are recognized as…

Q: A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is…

A: Future value of an amount is calculated as follows: FV = PV*(1+r)t Where, FV = Future value of…

Q: If Kenzo wants to have $19,000 in his account exactly 8 years from todayhow much should Kenzo…

A: Future value required = FV = $19000Period = nper = 8 yearsInterest rate = rate = 10%Kenzo wants to…

Q: 5. You deposit PHPI,500 in your bank account. If the bank pays 4% simple interest, how much interest…

A: Simple Interest = P * R *T Where P = Principal = PHP1,500R = Rate of Interest = 4%T = Time = 10…

Q: You Save Bank has a unique account. If you deposit $7,250 today, the bank will pay you an annual…

A: In this case, the bank uses different interest rates for different periods, so we'll need to apply…

Q: For a S 1,314 deposit, a bank offers two choices: Account "A" pays interest at an APR of 8.3%.…

A: Variables in the question:Initial deposit =$1314Bank offers two choices:Account A pays interest at…

Q: 4. How much should you deposit in an account so that you can withdraw $5300 every year for the next…

A: Given that, Annual Withdraw (A)=$5300 Duration (n)=18 years Rate of interest (i)=6% or 0.06 Amount…

Q: Suppose someone offered to sell you a note (an investment) that calls for $1,000 payment two years…

A: .Future Value (FV) :FV represents the projected worth of an initial sum of money at a specific point…

Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…

A: Here, Deposit Amount today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: The future value of annuity refers to the future value of a series of payments. The future value can…

Q: 1.1 Suppose you received R1000 from your grandparents on your 18th birthday, which was 17 years ago.…

A: Savings account earn compound interest. To calculate final account balance we can use the formula…

Q: A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Assume you just deposited $1,000 into a bank account. The current real interest rate is 3% and…

A: Initial deposit: $1000 Nominal interest rate: 3% Expected inflation rate: 5% Cost of stereo:…

Q: 1. Determine the interest rate earned on a $4,444 deposit when $4789 is paid back in one year.…

A: Future value is the estimated current value of an asset at a future date on an assumed discount…

Q: Suppose you deposit $1,098.00 into an account 5.00 years from today. Exactly 14.00 years from today…

A: Following formula is used to compute account's interest rate account's interest rate = -1where,n =…

Q: You deposit $100 each month into an account earning 7% interest compounded monthly. a) How much will…

A: Given:P = $100 (monthly deposit)r=0.07 (7% annual interest rate, expressed as a decimal)n=12…

Q: suppose that you overdrew your bank account by $200. the bank charge you a fee of $30 and your…

A: given: overdraft amount =$200 bank charge =$30 number of days =5…

Q: suppose you want to buy a new car that costs you 11284 OMR by a loan from bank Muscat for 6 years.…

A: Payment on a normal loan is considered as an annuity on which the loan value gradually decreases and…

Q: Your bank pays 8.50 percent annual interest compounded semiannually on your savings account. You…

A: Future Value = Present Value * (1+rate)^ n Where, Present Value = $2,500 Rate = 8.5%/2 =4.25%…

Q: Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until…

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: Suppose you walk into a bank and want to make a 10-year deposit. Bank manager tells you that the…

A: Annual deposits = $10,000Period = 10 yearsInterest rate = 5%

Q: Jane Smart plans to make the following deposits in an account towards cash purchase of a real estate…

A: The concept of money's time worth indicates that any sum of money is worth more currently as…

Q: 9. Suppose you need $1,000 ten years from now to settle your university education fees. If the…

A: Using the PMT function

Q: Your bank pays an interest rate quoted as 5.0% per annum compounded semi-annually. You invest $1,000…

A: Semi-annual interest rate (r) = 5%/2 = 2.5% Number of Semi-annual compounding (n) = 5 years x 2 = 10…

Q: Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10%…

A: The time to pay off the debt, the installment, beginning, and ending balances can be seen from the…

Q: Problem 4: What end-of-month deposits for the first six m hould Joshua have if he is planning to…

A: The future value of amount includes the amount being deposited and amount of interest being…

Q: What ne future value

A: This is a question relating to time value of money. Present value and future balue calculations are…

Q: If you deposit OMR 24184 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.

Q: A person wishes to get 800$ at the end of second year and 900$ at the end of fifth year, if rate of…

A: The question is based on the concept of calculating the present value of expected future cash flows…

Q: Do the relevant calculations so you can indicate which you prefer: a bank account that pays 5.7% per…

A: Current Bank EAR is 5.7% per year Value of $1 in current bank after 3 years would be: Answer: Value…

Q: Some time ago, you put £500 into a bank account for a “rainy day.” Since then, the bank has been…

A: A bank account is provided by a bank or any other financial institution where all the transactions…

Q: You deposit $ 70,565 in your account today. You make another deposit at t = 1 of $ 51,167 . How much…

A: Time value of money is one of important concept being used in finance. As per this concept, a dollar…

Question

If you deposit OMR 8854 in your account in a bank. Suppose the bank pays 8% compound interest half yearly. Calculate future value of your money in 5 years.

a. 13106.04

b. 13009.18

c. 19114.90

d. All the given choices are not correct

Video Video

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 3

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Suppose you borrow from a bank $1,756.06 today (t=0). You agree to pay back $3,637.64 in 4 years (t=4). The interest rate (%) that the bank charge you is closest to ________%. Input your answer without the % sign and round your answer to two decimal places.
May I ask for an explanation and solution to the question for a better understanding. Thank you! 11. You plan to invest an amount of money in a certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12%, compounded monthly. How much must you invest if you want the balance in the CD account to be P8,500 in 2½ years? a. P143,302.66 b. P11,941.89 c. P6,306.34 d. P11,302.14
If you earn 5% per year on your bank account, how long will it take an account with $110 to double to $220? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
2. You travel back in time to London in 1642. You deposit the equivalent of $1000 in a bank that still exists today. The bank offers you 2% interest. How much money would you end up with today with: ) Simple Interest? a. b. J Compounded Yearly Interest? Compounded Monthly Interest?
How much money should you deposit in your account now if you are looking to have $7000 after 5 years. The bank pays 7% interest rate per year? Select one: O a. P= $6990.90 O b. P= $9990.90 O c. P= $4990.90 O d. P= $3374.48
PLEASE DO NOT ANSWER IN EXCEL. ANSWER IT MANUALLY.
A person wishes to get 400$ at the end of third year and 600$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: O a. 650$ b. 625$ O c. 620%
13. You put $8,195 in the bank for 6 years at 7%. Using the Future Value of 1 Table (Time Value of Money Table) what factor would you use to calculate the future value of your deposit? Round to four decimal places. The table is too big to submit. Thank you!
If you deposit OMR 29173 in your account in a bank. Suppose the bank pays 8% compound interest half yearly. Calculate future value of your money in 5 years. O a. 42863.89 O b. 62981.59 O C. All the given choices are not correct O d. 43183.04 O e. 35493.33
1. Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) 2. How much would be in your savings account in 8 years after depositing $300 today if the bank pays 8 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3. What is the present value of a $1,300 payment made in five years when the discount rate is 10 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 4. What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 5. A deposit of $270 earns the following interest rates: 8 percent in the first year. 6 percent in the second year. 5 percent in the third year. What would be the third year future…
A person would want to have K143.33 in 4 years time by depositing a single cash of K100 in a bank that compound interest continuously. What interest rate does this bank give? What will be the interest on interest that he will receive on his investment?
suppose you want to buy a new car that costs you 11993 OMR by a loan from bank Muscat for 6 years. the bank charges you 4.004 percent on your loan. what is the annual payment should you pay to the bank every year on your loan? Select one: a. 2827.57 b. 62860.71 c. None of the options d. 2288.11 e. 1921.51

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS