Answered: Michelle Payne deposited $24,000 in a…

Michelle Payne deposited $24,000 in a savings account paying 6.25% simple interest. How long (in years) will it take for her investment to amount to $42,000?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

See similar textbooks

Related questions

Q: decided to deposit ISK 200, 000. deposit into a bank account, annually, for the next 5 years, which…

A: Annual deposit=ISK 200000Interest rate for 2 years=8%Interest rate for 3 years=6%

Q: Lester hopes to earn $1100 in interest in 2.2 years time from $22,000 that he has available to…

A: We need to use future value formula to calculate annual interest rateFV = PV(1+r)nwhereFV = Future…

Q: Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She…

A: Given: Holly Krech is planning for her retirement, so she is setting up a pay-out annuity with her…

Q: Wendy has $23,000.00 invested in a bank that pays 9.75% annually. How long will it take for her…

A: INTEREST RATE 9.75% PRESENT VALUE $ 23,000.00 FUTURE VALUE (23000*3) $…

Q: Tom hopes to earn $600 in Interest in 4.3 years time from $60,000 that he has available to invest.…

A: INTRODUCTION: An interest rate is a proportion of a loan's principle that is paid for the usage of…

Q: Kai Chang made a $2,400 deposit in her savings account on her 21st birthday, and she has made…

A: Future value refers to the sum accumulated in the future based on the present sum. The future value…

Q: Hannah wants to have $ 7500 to help pay for a new deck in 16 years. If she wants to put her money…

A: GIVEN, Future Value = $7500 Interest rate(r) = 6.25/100 = 0.0625 Time Period(t) = 16 years Present…

Q: Julie deposited some money in a savings account this morning. Her money will earn 5 percent…

A: Computation:

Q: Please help me answer the following time value of money question. Chuck deposited $25 in an account…

A: The value of an amount deposited today after a specific number of years is called its future value.

Q: Yolanda deposited $1,600 at the end of each six months for 2 years in a savings account. If the…

A: Future value (FV) refers to the sum value of current assets of the company which is evaluated at a…

Q: Karen White deposited $3,800 today in an account paying 6 percent interest annually. (If you solve…

A: Simple interest rate and compounding interest rate are the different types of interest rates. Simple…

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: Michelle payne deposited $20,000 in a savings account paying 6.25% simple interest. How long (in…

A: Future value = Prinicipal amount + Interest amount

Q: Janice has $5,000 invested in a bank that pays 2.8% annually. How long will it take for her funds to…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: Hannah wants to have $1500 to help pay for a new deck in 13 years. If she wants to put her money…

A: Present Value = Future value / e^rt Where r = 8.50% t = 13 years

Q: Tom plans to save $92 a month, starting today, for 18 years. Dick plans to save $92 a month for 18…

A: Future value refers to the estimated monetary value of an asset or investment at a specified point…

Q: avings of $1,600 and $800,respectively, and deposit this amount into an account that pays 9%…

A: The given problem can be solved using FV function in excel. FV function computes amount required in…

Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Michelle Payne deposited $24,000 in a savings account paying 6.25% simple interest. How long (in years) will it take for her investment to amount to $42,000?

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

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 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

Michelle Payne deposited $16,000 in a savings account paying 6.25% simple interest. How long (in years) will it take for her investment to amount to $28,000? years Need Help? Read It
Charlotte wishes to accumulate $100,000 in a savings account in 10 years. If she wishes to make a single deposit today and the bank pays 4% compounded annually on deposits of this size, how much should Charlotte deposit in the account?
Consider two savings plans: Kelly deposits $415 per month in an account with an APR of 4.2% for 15 years while Ryan deposits $520 at the end of each year in an account with an APR of 4.7%. Assume the number of compoundings is the same as number of payments. Which person deposited more money? Kelly or Ryan? What was the total deposit of each person? Which person's investment strategy earned more interest? What amount of interest did that person make?
Stella deposits $54,000 in a savings account at a bank that offers interest of 5.3% on such accounts. What is the value of the money in her savings account in five years’ time?
Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in interest from it over the next 12 years. How much money should Lily invest in this account to meet her goal? (Use I = Prt) a. $2,000.00 b. $1.670,40 $9.578.54 d. $6,030.27
Nick invested $2,000 in a bank savings account today and another $2000 a year from now. If the bank pays interest of 10 percent per year, how much money will Nick have at the end of five years? $6,149 $5,221 $4,620 $6,442
You decide to deposit $5000 in a bank account paying 3.5% interest. What is the value of your savings in one year?
Karen White deposited $3,800 today in an account paying 6 percent interest annually. (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)What would be the simple interest earned on this investment in 5 years? Simple interest on investment $ With annual compounding, how much interest-on-interest would Karen earn in 5 years? Interest-on-interest $
A time deposit account in the bank yield 5.5%compound interest annually. Jennifer invested P450, 000 for 4 years in this savings account. How much interest will she gain?
A mother wants to invest $8 comma 000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $ 480.00 comma how much money was invested in the CD account? The total interest earned after one year is $480.00 . How much money was invested in the CD account?
Dave invests $3,700 in a savings account at his local bank which gives 3.296 simple annual interest. He also invests $3,000 in an online savings account which gives 5.9% simple annual interest. After 15 years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar? (Use I = Prt) The online account has $879 more than the local bank b. The online account has $179 more than the local bank C. The local bank has $776 more than the online account. d. The local bank: has $345 more than the ontine account.
Assume Sheryl Jenkins wants to accumulate $ 12,485.35 in two years. She currently has $ 10,809.59 to invest. What interest rate must she earn on her investment (that is, if she deposits $ 10,809.59 today) to have $ 12,485.35 exactly two years from today?