Assuming that four annual deposits of ($1000) are occurred but the first payment deposit at end of the second year, if interest rate is (%12), determine: The annually payments for next six years if beginning at end of the first year?

Assuming that four annual deposits of ($1000) are occurred but the first payment deposit at end of the second year, if interest rate is (%12), determine: The annually payments for next six years if beginning at end of the first year?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 25E

See similar textbooks

Related questions

Q: Suppose that you made equal annual deposits starting from now followed by another at the end of…

A: Assuming Annual Deposit = 1000 Interest Rate = 8% Compounded Annually Deposits: Year Deposit 0…

Q: 5. Assuming making four annual deposits of ($ 1000), and the first payment occurs at the end of the…

A: Annuity can be defined as a series of payments or receipts of equal amounts of money at equal…

Q: What is the nominal annual rate of interest compounded quarterly if a loan of $21,500 is paid in…

A: Semi-annual effective interest rate is calculated as below in the excel:

Q: How much money would be accumulated in15years for a deposit of $15,000 made at the end-ofyear zero…

A: The formula used as follows:

Q: If a deposit of $100 is made on the first day of each month into an account that pays 6% interest…

A: The compounding method is used to determine the future value of cash that is deposited today. Given;…

Q: What is the present($) worth of two $100 payments at the end of third and fourth years if the annual…

A: The formula for the calculation of present worth is as follows: Present worth=Future…

Q: At the end of five years, how much is an initial $500 deposit followed by five year-end, annual $100…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual…

A: Time value of money is a financial concept, where the current value of the funds is worth more than…

Q: Find the value of the ordinary annuity at the end of the indicated time period. The payment are…

A: Annuity refers to a stream of constant cash flows occurring at fixed intervals like monthly,…

Q: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

Q: Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, the total…

A: Note Payable: A Note payable is a written promissory note which represents a specific amount of…

Q: What will deposits of $470.00 made at the end of each month amount to after seven years if interest…

A: FV stands for Future value which refers to value of the current asset at the future date that is…

Q: Compute the future value of a $1500 deposit, after eight years, in an account that pays an interest…

A: Future value can be determined by compounding the present value.

Q: What is the accumulated value of periodic deposits of $50 at the beginning of every six months for…

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

Q: If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account…

A: Annual deposit (P) = $ 2500 Annual interest rate (R) = 0% Number of annual deposit (N) = 12

Q: What is the amount of five equal annual deposits that can provide five annual withdrawals, where a…

A: First withdrawal of $1500 is made at the end of year six and subsequent withdrawals increase at $100…

Q: What is the value of the account after 5 years?

A: Information Provided: Initial Payment = $5000 Interest rate = 3% compounded monthly Payment after…

Q: You decide to deposit $126 monthly in a 3.2% annual interest bearing account over the next 18 years.…

A: The future value of annuity is used to determine the value of a series of payments in future at a…

Q: Do in excel What uniform annual amount should be deposited each year in order to accumulate…

A: solution future value $2,143.60 Number of period 8 present value 0 annual interest rate…

Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…

A: Future value = P { [ ( 1+r)n-1] / r } where p = periodic payment =?? r = rate of interest = 3% n =…

Q: Suppose that $1,500 is placed in a bank account at the end of each quarter over the next 20 years.…

A: Use the following formula to calculate the effective interest rate (EIR). Where i is the effective…

Q: suming a 360-day year, when a $12,600, 90-day, 11% interest-bearing note payable matures, total…

A: Maturity Value of Note Payable = Face Value + Interest Maturity value = Face Value + (Face Value x…

Q: Six months from today, you wish to begin making an infinite series of semiannual withdrawals of $600…

A: An infinite series of deposit which will have same deposit is known as perpetuity. The present value…

Q: What amount must be deposited today, if, starting one year from today, you wish to make 15 equal…

A: Given, annual withdrawals $3,450. Number of payments 15. Interest rate is 0%.

Q: What will be the maturity value of $5,000 deposited in a three-year certificate of deposit that…

A: In the present question we require to calculate the maturity value i.e. future value from the…

Q: If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the…

A: The effective rate of interest is the return on savings or interest on investment that takes into…

Q: A sum of money is deposited at the beginning of each year for 3 years at 12% p.a. compounded…

A: It represents a kind of annuity where the payments are made at the beginning of the period or…

Q: For ethe case shown in the following table, determine the amount of the equal, end of year deposits…

A: Future value (FV) = $ 130,00 Period (n) = 30 Annual interest (r) = 13%

Q: Consider a $1,000 deposit earning 7 percent interest per year for six years. What is the future…

A: Future value is that amount which will be require to paid at some specified period of time. It…

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

5. Assuming that four annual deposits of ($1000) are occurred but the first
payment deposit at end of the second year, if interest rate is (%12),
determine:
A. The annually payments for next six years if beginning at end of the first
year?

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 by step

Solved in 2 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, finance and related others by exploring similar questions and additional content below.

Similar questions

a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time Financial Goal $? at the end of each month 6.25% compounded monthly 45 years $1,000,000 a.The periodic deposit is $______. (Do not round until the final answer. Then round up to the nearest dollar asneeded.)
a. Set up an amortization schedule for a $19,000 loan to be repaid in equal installments atthe end of each of the next 3 years. The interest rate is 8% compounded annually.b. What percentage of the payment represents interest and what percentage representsprincipal for each of the 3 years? Why do these percentages change over time?
If you borrow $7,500 at $550 interest for one year, what is your effective interest rate for the following payment plans? (Input your answers as a percent rounded to 2 decimal places.) a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % %
At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of: (i) 100 percent? (ii) 10 percent? (iii) 0 percent?
Do in excel What uniform annual amount should be deposited each year in order to accumulate $2143.60 at the time of eighth annual deposits ? The interest rate is 10% per year .
3) A $1000 deposit in an account earns interest at an annual nominal rate of 8.00%. Interest is compounded monthly in the account. How much money will be in the account at the end of the 10th year? bgs Identify variables given;
If you borrow $7,300 at $800 interest for one year, what is your effective interest rate for the following payment plans? Note: Input your answers as a percent rounded to 2 decimal places. a. Annual payment b. Semiannual payments c. Quarterly payments d. Monthly payments Effective Rate of Interest % % % %
Create a loan repayment schedule for a loan of $30295 and payments of $8482 made annually. Assume a rate of interest of 6.13% per year compounded annually. What is the balance remaining after the second payment?
At the end of five years, how much is an initial $500 deposit followed by five year-end, annual $100 payments worth, assuming a compound annual interest rate of (i) 10 percent? (ii) 5 percent? (iii) 0 percent?
A sum of money is deposited at the beginning of each year for 3 years at 12% p.a. compounded monthly. After the last deposit interest for the account is to be 8.24% p.a. compounded semi-annually and the account is to be paid out by payments of $1800.00, made at the beginning of each quarter for nine years. What is the size of the annual deposit?
Suppose that you made equal annual deposits starting from now followed by another at the end of years 2, 4, 6, and 8. At an interest rate of 8% compounded annually, what is the ending amount in year 9?
Determine the amount of money in a savings account at the end of 5 years, given an initial deposit of AED 40,000 and 8 percent annual interest rate when interest is compounded (a) annually, (b) semiannually, and (c) quarterly.