Answered: Jack opened an account 15 years ago and…

Jack opened an account 15 years ago and deposited $12,000 into it. The account now has $20,000 in it. What is the annual interest rate if the account compounds annually? 5% 3.5% 10% 2.5%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: You deposited $5,000 four years ago into a bank account. Two years ago, you deposited an additional…

A: The future of money is the accumulation of the present amount. It determines with the help of a…

Q: ose you deposit $100,000 in an account today that pays 6% interest, comp ally. How long does it take…

A: The given problem can be solved using NPER function in excel. NPER function computes no. of years/…

Q: Suppose you invest $103 nin a bank account, and five years later it has grown to $137.91. a. What…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: rakes no other deposits and withdrawals A fer 3 months the interest is calculated. How much simple…

A: Here in this question, we are required to calculate the simple interest. For calculating simple…

Q: Suppose you invest $100 in a bank account, and five years later it has grown to $134.39. What APR…

A: Investment (P) = $ 100 Future value (FV) = $ 134.39 Period = 5 Years

Q: Suppose you invest $1,200 in an account paying 4% interest per year. a. What is the balance in the…

A: Compound Interest With compound interest, more interest can be earned compared to simple interest…

Q: Suppose you invest $1,100 in an account paying 5% interest per year. What is the balance in the…

A: The Future Value of a lump-sum: The value of a one-time investment made at present earns interest…

Q: If you wish to accumulate $246,000 in 17 years, how much must you deposit today in an account that…

A: Future Value = fv = $246,000Time = t = 17Interest rate = r = 15%

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 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: 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: A bank features a savings account that has an annual percentage rate of r = 5.8% with interest…

A: (A) n=p/yt Given t=10 years (p/y)=4 (since interest is compounded quarterly)

Q: Suppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest…

A: future value can be calculated from present value using interest rate and given period of savings in…

Q: How would you need to deposit in an account now in order to have $3000 in the account in 5 years?…

A: Given, Future Value = $3000 Time period = 5 years Interest rate = 7% Compounding = monthly

Q: You deposit $10,000 in an account earning 4% interest compounded monthly. a. How much will you have…

A: Compound Interest is the interest on a deposit or loan calculated on the initial principal and the…

Q: Compute and compare the following interests situations if you deposit $2500 into an account with…

A: When we make an investment or deposit money in a bank our invested amount grows. This is because…

Q: Assume you deposit $5700 at the end of each year into an account paying 11.25 percent interest.…

A: Given: Deposit = $5,700 Interest rate = 11.25% Future value= ?

Q: 1. If you deposit OMR 32000 today in to a bank account that pays 4% interest compounded, how much…

A: 1. we need to calculate future value of OMR 32,000 after 5 years at 4% interest rate. so, future…

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: Assume that you just deposited $1000 into a savings account that earns an interest rate of3% per…

A: The future value of an investment can be very useful for investors as it helps them to estimate how…

Q: How much do you need to deposit into a bank in order to receive proceeds of $200,000 in 5 years if…

A: The equation is, PV=FV÷1+in Where, Present value is represented by PV Future value is represented by…

Q: What is the balance in the account after 3years? How much of this balance corresponds to "interest…

A: Information Provided: Principal = $1250 Interest rate = 8% A: Period = 3 years B: Period = 31 years…

Q: Suppose you deposit $20,000 in an account today that pays 4% interest, compounded annually. How long…

A: Here, 20,000 is deposited today and future value is $80,000. Want to calculate how many years it…

Q: Suppose you invest $850 in an account paying 5% interest per year. a. What is the balance in the…

A: present Value = pv = $850Interest Rate = r = 5%

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: 1. Find FV: You have $2,000 in a savings account that earns 1.5% interest per year. will be the…

A: Future value of the money is the sum of money deposited and amount of compounded interest…

Question

Jack opened an account 15 years ago and deposited $12,000 into it. The account
now has $20,000 in it. What is the annual interest rate if the account compounds
annually?
5%
3.5%
10%
2.5%

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

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

Suppose you deposit $1,098.00 into an account 5.00 years from today. Exactly 14.00 years from today the account is worth $1,577.00. What was the account's interest rate?
Suppose you invest $100 in a bank account, and five years later it has grown to $134.39. What APR did you receive if the interest was compounded semiannually? What APR did you receive if the interest was compounded monthly
Assume Bill Jones invested $4,604.93 into an account exactly one year ago. The account has an interest rate of 7.4% p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)?
You deposited $5,000 four years ago into a bank account. Two years ago, you deposited an additional $4,000. Assume an annual interest rate of 6%. How much will be in the account in ten years from now? Use a $ symbol and a comma and zero decimal places
Suppose you invest $103 nin a bank account, and five years later it has grown to $137.91. a. What APR did you receive, if the interest was compounded semiannually? b. What APR did you receive if the interest was compounded monthly?
Assume Bill Jones invested $ 2,160.57 into an account exactly one year ago. The account has an interest rate of 5.9 % p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)? (Round your answer to the nearest cent and record your answer without a dollar sign and without commas. For example, record $1,356.8382 as 1356.84).
You deposited $150 the first year in an account that earns 12% annual interest. You also deposited $300 and $350 the second and fourth year respectively in that account with the same interest rate. All the deposits happened at the beginning of the years. How much money do get in that account at the end of the fourth year? Check your answer with interest table.
2) Suppose that you had deposited $125 in a bank account for each of the last 5 years. What annual interest rate is attached to this account if there is now (at the end of the fifth year) $758.92 in the account? A) 8% B) 10% C) 12% D) 14% E) 16%
Suppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest credited to the account at the end of each year. Assuming that no withdrawals are made, complete the following: a. Find the balance in the account after 5 years. b. Find the balance of the account after 9 years and 10 months.
If $7,128 is deposited into an account that earns simple interest and it takes 9 years to earn $1,796.26 in total interest, then the annual interest rate for the account is?
You invest $ 4,060 in an account today. You make no additional deposits into the account. One year from today there is $ 5,140 in the account. What is the nominal interest rate that you earned on your money? (Record your answer as a percent rounded to 1 decimal place; for example, record .527945 = 52.8% as 52.8). Your Answer:
Assume Jed Gerbil invested $ 12,524 into an account exactly two years ago. The account has an interest rate of 13.1 % p.a. How much does Jed have in his account today (that is, exactly two years after the initial deposit)? (Round your answer to the nearest cent and record your answer without a dollar sign and without commas. For example, record $1,356.8382 as 1356.84).