4.Let's say you get a S8000 inheritance, and you wisely decide to put it into a long-terminvestment that pays 7% in simple interest each year. How much interest will you earn at the endof five years if you withdrew the interest (did not reinvest the interest) each year?Starting Value ofEnding Value ofAccountTimeInterest EarnedAccountThat YearFirst yearSecond yearThird yearFourth year8000800080008000Fifth year8000Total Interest Earned:Similar to the table above. How much money will you have at the end of five years ifyou did reinvest the interest earned each year? (Now you are using the "Ending Value ofAccount" as the "Starting Value" for the next year.) Round answers to the nearest cent.5.TimeStarting Value ofEnding Value ofAccountInterest EarnedAccountThat YearFirst year8000Second yearThird yearFourthyearFifth yearHow much extra did you earn in interest by the end of five years by reinvesting the(Bonus:interest?

Simple interest means interest on an amount assuming there is no reinvestment and every year equal…

Let's say you get a $8000 inheritance, and you wisely decide to put it into a long-term investment that pays 7% in simple interest each year. How much interest will you earn at the end of five years if you withdrew the interest (did not reinvest the interest) each year? Starting Value of Ассоunt Ending Value of Account Time Interest Earned That Year 8000 First year Second year Third year Fourth year Fifth year 8000 8000 8000 8000 Total Interest Earned: 5. you did reinvest the interest earned each year? (Now you are using the "Ending Value of Account" as the "Starting Value" for the next year.) Round answers to the nearest cent. Similar to the table above. How much money will you have at the end of five years if Starting Value of Account Time Interest Earned Ending Value of That Year Account First year 8000 Second year Third year Fourth year Fifth year (Bonus: interest? How much extra did you earn in interest by the end of five years by reinvesting the

Let's say you get a $8000 inheritance, and you wisely decide to put it into a long-term investment that pays 7% in simple interest each year. How much interest will you earn at the end of five years if you withdrew the interest (did not reinvest the interest) each year? Starting Value of Ассоunt Ending Value of Account Time Interest Earned That Year 8000 First year Second year Third year Fourth year Fifth year 8000 8000 8000 8000 Total Interest Earned: 5. you did reinvest the interest earned each year? (Now you are using the "Ending Value of Account" as the "Starting Value" for the next year.) Round answers to the nearest cent. Similar to the table above. How much money will you have at the end of five years if Starting Value of Account Time Interest Earned Ending Value of That Year Account First year 8000 Second year Third year Fourth year Fifth year (Bonus: interest? How much extra did you earn in interest by the end of five years by reinvesting the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You have inherited money from a distant relative, and it will arrive in 4 separate deposits over the course of 6 years as shown below. At the same time, you're receiving an annual salary of $50,000 (an annuity). At the end of the 6th year, how much money will be in your account, if your account has an annual interest rate of 8%? Year 1: $5,000 Year 2:0 Year 3: $6,400 Year 4: $8,000 Year 5:0 Year 6: $7,500 Typed numeric answer will be automatically saved.
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A family buys a house worth $326,000. They pay a $75,000 deposit and take a mortgage for the balance at J12=9% p.a. to be amortized over 30 years with monthly payments. Find the value of the mortgage on their house? Find the value of the monthly payment? Find the loan outstanding after making 20 payments? Find the principal repaid in the 21st payment?
You invest $1,000 in a certificate of deposit that matures after 10 yaers and pays 5 percent interest, which is compounded annually until the certificate matures A. How much interest will the saver earn if the interest is left to accumulate? B. How much interest will the saver earn if the interest is withdrawn each year? C. Why are the answers to a and b different?
I
You would like to give your son $70,000 towards his college education 12 years from now. How much money must you set aside today for this purpose if you can earn 8% on your investments? B. $176.271.91 C. $27.797.96 A. $12.250.00 interest rate, you will triple your money in ately D. $3,688.65 E. $14.211.11
You have just received a windfall from an investment you made in a friend's business. She will be paying you $26,016 at the end of this year, $52,032 at the end of next year, and $78,048 at the end of the year after that (three years from today). The interest rate is 11.4% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?
Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $8,750 a year at the end of each of the next seven years 2. $50,050 (lump sum) now 3. $98,650 (lump sum) seven years from now Calculate the present value of each scenario using a 6% interest rate. Which scenario yields the highest present value? Would your preference change if you used a 12% interest rate? (Click the icon to view the present value (Click the icon to view the present value annuity factor table.) factor table.) (Click the icon to view the future value annuity factor table.) factor table.) (Glick the icon to view the future value Using a 6% interest rate, calculate the present values for each scenario. (Round the amounts to the nearest dollar.) Present value of Scenario 1
PLEASE ANSWER THIS APPLICATION OF FIRST ORDER DE (REFRAIN FROM GIVING ME A SOLUTION IN AN ACCOUNTING WAY) TIA! After receiving his first income, Juan dela Cruz invested 20,000 in a bank for his future family. The annual interest rate in his investment is 10 % - compounded interest such that the interest of his investment also gets an interest. a. What is the growth rate, k? b. How much will he have after 10 years? c. Approximately after how many years will his money double?
You have just received a windfall from an investment you made in a friend's business. He will be paying you $11,917 at the end of this year, $23,834 at the end of the following year, and $35,751 at the end of the year after that (three years from today). The interest rate is 4.7% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is $ (Round to the nearest dollar.)
Hank made payments of $106 per month at the end of each month for 30 years to purchase a piece of property. He promptly sold it for $99,810. What annual interest rate would he need to earn on an ordinary annuity for a comparable rate of return? ◻️٪؜ (Round to the nearest hundredth as needed.)
Assume that you own an annuity that will pay you $14,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $125,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? a. 11.20% b. 4.46% c. 4.87% d. 20.01% e. 5.90%