Mark is looking to invest $7,500 today in a bank CD that will earn interest at 4.75 percent annually. How much will he have at the end of four years? (Round to the nearest dollar.) Group of answer choices $ 9,030 $10,200 $9, 459 $9,870

Mark is looking to invest $7,500 today in a bank CD that will earn interest at 4.75 percent annually. How much will he have at the end of four years? (Round to the nearest dollar.) Group of answer choices $ 9,030 $10,200 $9, 459 $9,870

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

See similar textbooks

Related questions

Q: Randy Hill wants to retire in 20 years with $1,000,000. If he can earn 8% per year on his…

A: Future value (FV) is a fundamental financial concept rooted in the time value of money, illustrating…

Q: You decide to deposit $7000 at a local bank for three years at a 8% rate of interest compounded…

A: The objective of the question is to calculate the future value of an investment of $7000 at a local…

Q: You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy…

A: Present value of annuity (PVA) formula: PVA=A×1-11+rmn×mrm A=annuity r=rate n=number of years…

Q: Suppose you receive $500 in graduation money. You decide to put it into an account paying 5%. If you…

A: FV= [C*{(1+r)^n-1]/r] + [P*(1+r)^n] Where P= Initial deposit = $500 C= Periodic payments = $170 r=…

Q: After retirement, you expect to live for 25 years. You would like to have $91,000 in income each…

A: In this question, we are required to determine the amount we need to have to receive income for 25…

Q: You want to retire exactly 35 years from today with $2,080,000 in your retirement account. If you…

A: An annuity refers to a series of equal cash flows received or paid at regular intervals for a…

Q: You want to have $100,000 in your savings account 3 years from now, and you're prepared to make…

Q: You plan on investing $1.900 every 4 years while earning 6% per year. How much money will you have…

A: Future value refers to the concept of time, the value of money which is used for computing the value…

Q: you would like to have enough money saved to receive a $53,000 per year perpetuity after retirement.…

A: Perpetuity refers to something that lasts forever, without an end.It represents an infinite duration…

Q: Future value: Ted Rogers is investing $7,500 in a bank CD that pays a 6 percent annual interest. How…

A: Future value formula Used for Calculation: FV= PV(1+r)^n PV = present value = 7500 r= rate of…

Q: You are scheduled to receive $10,000 in three years. When you receive it, you will invest it for six…

A: 3 years from now, you will receive $10,000 which will be invested for 6 years. We can determine the…

Q: Suppose you want to have $500,000 for retirement in 30 years. Your account earns 9% interest. How…

A: Compound = monthly = 12 Future value = fv = $500,000 Time = t = 30 * 12 = 360 months Interest rate…

Q: How much money should a young married couple invest now at a 7% annual rate if they want to have…

A: Future value (FV) or (A) = $ 100000 Annual Rate of Investment (i) = 7 % No. of Years (n) = 30 Years…

Q: You want to have $67,000 in your savings account 10 years from now, and you're prepared to make…

A: Payment per period is the regular payments made or received of an investment, while future value is…

Q: Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10…

A: Period (n) = 10 Years Annual cash flow (C) = $25,000 Required return (r) = 0.07 Present value = ?…

Q: Today you are opening a savings account and depositing an initial $5,000 into it. You plan to…

A: Maturity Value is that amount which will be received at the end of certain period of time. It…

Q: Jenny Abel is investing $2,500 today and will do so at the beginning of each of the next four years…

A: The FV of the investment refers to the combined value of its cash flows at a particular future date…

Q: You want to have $51,000 in your savings account 9 years from now, and you're prepared to make equal…

A: Payment per period is the regular payments made or received of an investment, while future value is…

Q: Your older sister deposited $100,000 today at 12.5 percent interest for 10 years. You would like to…

A: Solution: An amount deposited somewhere, earns interest on it. The amount deposited in the beginning…

Q: You are scheduled to receive $40,000 in two years. When you receive it, you will invest it for 6…

A: given, pv= $40,000 r=7% n=6

Q: You would like to save a million dollars by depositing $25,000 at the end of year into an account…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you leave the…

A: Future Value (FV) is a financial concept representing the projected value of an investment, series…

Q: How much should you pay for the promise of $2,000 in 5 years? Assume you would like to earn 4.5% per…

A: Formula: Present value = Future value / (1+rate)^years

Q: You plan to deposit $3,600 each year for the next 12 years. The interest rate is 9 percent. If you…

A: Deposit = d = $3600 Time = t = 12 years Interest rate = r = 9% Present value = pv = $10,000

Q: You want to have $49,000 in your savings account 4 years from now, and you're prepared to make equal…

A: Annuity is a series of payments being made in order to receive more value in future. Under ordinary…

Q: You plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what…

A: Solution: When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: You are scheduled to receive $45,000 in two years. When you receive it, you will invest it for 8…

A: Amount After 3 Years = a = $45,000Time = t = 8 YearsInterest Rate = r = 6%

Q: Charlie Munger wants to save for a trip to Italy. He will need $18,108 at the end of 12 years. He…

A: Annual Investment refers to the amount which is accumulated into a fund account with which interest…

Q: After retirement, you expect to live for 25 years. You would like to have $90,000 in income each…

A: The time value of money is a concept that follows the principle that states that the worth of money…

Q: If you deposit $5,000 in a bank account that pays 10% interest annually to buy a car after you…

A: The future value of cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: You estimate you'll need $100, 000 per year for 25 years starting on your 65th birthday to live on…

A: Here, Annual Payment required after Retirement $ 100,000.00Time Period after Retirement25Interest…

Q: You are to invest $1000 now, $2000 in one year, $3000 in two years and $4000 in three years in an…

A: The concept of time value of money states that worth of money changes with passage of time as money…

Question

Mark is looking to invest $7,500
today in a bank CD that will earn
interest at 4.75 percent annually.
How much will he have at the end of
four years? (Round to the nearest
dollar.) Group of answer choices $
9,030 $10,200 $9, 459 $9, 870

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: Define of Future Value

VIEW

Step 2: Calculation of future value

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

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, finance and related others by exploring similar questions and additional content below.

Similar questions

Connor has $550,000 to invest in a 5 year annuity. Assuming the time value of money is 10%, what amount will Connor receive in cash each year? Use Appendix Table 2. (Do not round your PV factors. Round your answer to the nearest dollar.) Multiple Choice O $110,000 $119,900 $145,089 None of these answers is correct.
Randy Hill wants to retire in 20 years with $1,000,000. If he can earn 8% per year on his investments, how much does he need to deposit each year to reach his goal? Round your answer to the nearest dollar. a) $50,000 Ob) $21,352 Oc) $21,852 d) $4,576
You are scheduled to receive $40,000 in two years. When you receive it, you will invest it for 6 more years at 7 percent per year. How much will you have in 8 years? Multiple Choice $45,837.07 $63,030.67 $57,027.75 $68,727.45 $60,029.21
Trent McDuffie plans on investing $50,000 every year for the next 11 years in an account that pays an interest rate of 5.50 percent compounded monthly. How much money will Trent have in 11 years? Multiple Choice $550,000.00 $729,174.91 $734,580.90 $753,384.30
Bha
Your father is considering purchasing an annuity that pays $5,000 at the beginning of each year for 5 years. He could earn 4.5% on his money in other investments with equal risk. What is the most he should pay for the annuity? 20,701 $21,791 $22,938 $24,085 $25,289
Carol wants to have $13,000 when she turns 30. Right now, she's 23 (7 years difference). She has $5,500 that she can invest in a mutual fund. If she leaves the money in this account for the full 7 years and it earns 12.5%, compounding quarterly, how much will be in the account? Group of answer choices $13,134.24 $13,018.28 $10,312.50 $2,323.66 Please answer using an excel formula.
Samson just won the grand prize of $53 million in the Lotto Max lottery. If he invests the money into a perpetuity fund earning 5.5% compounded annually, what monthly payment can he expect to receive starting today? Select one: O a. $235944.97 b. $179887.46 c. none Od. $246938.14 Check
Please get to me soon.
How much money does Suzie need to have in her retirement savings account today if she wishes to withdraw $25,000 a year for 3 years? She expects to earn an average rate of return of 13 percent. A. $59,028.81 OB. $65,419.81 OC. $71,533.33 OD. $85,160.98 E. $87,391.34
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
Melanie will invest $7,000 per year for the next 32 years. At a rate of 8% per year, how much money will Melanie have after 32 years? Group of answer choices $939, 494.76 $ 80, 045.00 $179,747.74 $82, 159.58