Jim makes a deposit of $12,300 in a bank account. The deposit is to earn interest compounded annually at the rate of 9 percent for seven years. Required: a. How much will Jim have on deposit at the end of seven years? (Hint: What is future value?) Note: Do not round intermediate calculations and round your final answer to the nearest whole dollar amount. b. Assuming the deposit earned a 12 percent rate of interest compounded quarterly, how much would he have at the end of seven years? Note: Do not round intermediate calculations and round your final answer to the nearest whole dollar amount. c1. What is the effective annual yield for alternative (a) where interest is compounded annually? (Hint: Consider the future value of each deposit after one year only.) Note: Do not round intermediate calculations and round your final answer to 2 decimal places. c2. What is the effective annual yield for alternative (b) where interest is compounded quarterly? (Hint: Consider the future value of each deposit after one year only.) Note: Do not round intermediate calculations and round your final answer to 2 decimal places. c3. Which alternative is better? a. Future value-annual compounding b. Future value - quarterly compounding c1. Effective annual yield - annual compounding c2. Effective annual yield - quarterly compounding c3. Better alternative % %

Q: Joe plans to deposit $300 at the end of each month into a bank account for a period of 3 yr, after…

A: To solve this question we have to first find the future value of monthly annuity of $ 300 after…

Q: Jason owes $42000 due at the end of 3 years with interest at j4 = 2.5%. In order to payoff the loan…

A: In this financial scenario, Jason has a loan obligation of $42,000 due at the end of 3 years with an…

Q: Paul borrowed $500000 from the bank for mortgage. The interest rate is 7.8% compounded monthly. a.…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: A) When you retire, you move $300,000 into an account that pays nominal interest of 4%, compounded…

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

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: You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent…

A: Compound = monthly = 12Monthly Deposit = d = $370Interest Rate = r = 9 / 12 = 0.75%Time = t = 35 *…

Q: ou make a one time 2000 deposit into an account which pays an annual interest rate of 1.7 compounded…

A: the final balance in the account will be the future value of the amount 2000 along with the interest…

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 Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: Compound = monthly = 12 Payment = p = $140 Interest rate = r = 6 / 12 = 0.5% Time = t = 15 months

Q: If you deposit $500 in a savings account that offers3 percent interest, compounded annually, and…

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

Q: What is the value (in $) of Jorge's account after 16 months? (Round your answer to the nearest…

A: Information Provided: payment made = $150 Term = 16 months Interest rate = 6% compounded monthly

Q: Lidia deposits $700 at the END of each year for 8 years in a savings account. The account pays 12%…

A: In finance, the term annuity represents a stream of cash flows that contain an equivalent periodic…

Q: Pascal has recently opened an RRSP. He plans to deposit $ 733 at the end of every month for 20…

A: RRSP is the retirement plan and contribution made are tax free and used to accumulate fund for…

Q: You plan to deposit $200 at the end of every six months for 8 years starting at the end of month 6.…

A: Answer: Calculation of the amount that will be available to withdraw at the end of year 15: The…

Q: Assume that you will borrow $400, 000 from a bank that charges 4.5 percent interest compounded…

A: Hi there, As per the Q&A honor code, It must be answered the first question when multiple…

Q: You are planning to make monthly deposits of $340 into a retirement account that pi 9 percent…

A: Compound = Monthly = 12Payment = p = $340Interest Rate = r = 9 / 12 = 0.75Time = t = 35 * 12 = 420

Q: If Jackson deposits $120 at the end of each month in a savings account earning interest at a rate of…

A: Time value of money :— According to this concept, value of of money in present day is greater than…

Q: You will deposit $202 each of the next four years (the first deposit will occur one year from today,…

A: 92 COMPOUNDED ANNUALLY ROUNDED 2 DECIMAL 93 F G   94 INTEREST RATE 7.50%   95 NPER (n)  4…

Q: Marcus deposits $2600 into an account that has an annual interest rate of 5% compounded monthly. If…

A: Deposit is 42,600Annual Interest Rate (r) is 5%Compounding Period (m) is Monthly i.e 12Time Period…

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: You have the chance to invest $100 in a Certificate of Deposit (CD) paying 6 percent annual…

A: The account value after 5 years can be calculated with the help of future value function

Q: help!! Hector needs $13,000 in 7 years. (a) What amount should he deposit at the end of each quarter…

A: Amount needed " FV" is $13,000Time period is 7 yearsInterest rate is 7% Compounded QuarterlyTo…

Q: You deposit $57000 into an account which pays 7% compounded annually. How much can you withdraw at…

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

Q: Larry Davis borrows $87,000 at 11 percent interest toward the purchase of a home. His mortgage is…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Mr. Bean wants to borrow $8,200 for three years. The Interest rate Is 5.5% compounded monthly. a.…

A: Annuity refers to the amount of payment which is made at equal intervals for certain period or till…

Q: You are planning to make monthly deposits of $300 into a retirement account that pays 8 percent…

A: Future value is the amount of money worth at a future date. This can be calculated based on the time…

Q: Skippy wants to have $16,000.00 in 7 years. His bank is offering an account that earns 2% compounded…

A: Compound = Monthly = 12Future Value = fv = $16,000Time = t = 7 * 12 = 84Interest Rate = r = 2 / 12 %

Q: How much would you need to deposit in an account now in order to have $2000 in the account in 15…

A: Future Value is that amount which includes the interest which is received by investing the amount at…

Q: You wish to make 4 equal annual deposits into a savings account such that at the time of your last…

A:

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: Basically there are two interest rates. We will first find the future value at the of 6th month…

Q: If Rita receives $41.64 interest for a deposit earning 7% simple interest for 170 days, what is the…

A: The simple interest method is one of the easiest methods of calculating interest. Under the simple…

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: Interest amount refers to an amount that is paid by the borrower to the lender at every period along…

Q: Lidia deposits $800 at the END of each year for 8 years in a savings account. The account pays 12%…

A: Future value is the value of an asset in the future over the years. It can be calculated as…