Q3 : Starting on the day Anna was born, her mother has invested $40 at the beginning of every month in a savings account that earns 3.70% compounded monthly. a. How much did Anna have in this account on her 20th birthday? Assume that there was no deposit on that day. Round to the nearest cent b. What was her mother's total investment? Round to the nearest cent c. How much interest did the investment earn? Round to the nearest cent

Q3 : Starting on the day Anna was born, her mother has invested $40 at the beginning of every month in a savings account that earns 3.70% compounded monthly. a. How much did Anna have in this account on her 20th birthday? Assume that there was no deposit on that day. Round to the nearest cent b. What was her mother's total investment? Round to the nearest cent c. How much interest did the investment earn? Round to the nearest cent

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 2STP

See similar textbooks

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
Your grandmother has been putting $600 into a savings account on every birthday since your first (that is, when you turned one). The account pays an interest rate of 11%. How much money will be in the account immediately after your grandmother makes the deposit on your 18th birthday? The amount in the account upon your 18th birthday is $. (Round to the nearest cent.)
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
2. Suppose Miss Roxanne Davenport is 25 years old right now and puts away $1,800 per quarter in an account that returns 6% interest. a. How much will be in the account when she turns 65? b. What is her total contribution to the account? How much interest did she earn?
1. Hannah deposited 1,500 in a bank with an interest rate for 1 year. What is the future of her deposit? 2. Francis needs to save up to 1,500 in 1 yeat. How much should he save now if the bank offers a rate of 5%? Find the present value. 3. Marie deposited 1,000 in her bank account. If the bank pays her 4% simple interest, how much interest will she accumulate in her account after 10 years? What if the bank pays compound interest? 4. What is the present value of the following cash flow stream if the interest is 7%? Year Cach Flow 250 350 3 500
Suppose you have saved $216 each month for the last 7 years to make a down payment on a house. The account earned an interest rate of 0.53 percent per month. How much money is in your account? Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. Remember to enter the final answer as a positive number.
A woman went to the Beneficial Loan Company and borrowed S10,000. She must pay S323.53 At the end of each month for the next 60 months. A. What is the Monthly Interest rate she is paying? What is the Nominal Interest rate? С. What is the Effective Interest rate? Make your cash flow diagram and solve. B.
Q4: Grandma Jones has $300,000 in a bank account, which pays her interest at 3.33%. What is the largest amount of money that she could take out now and still have $300,000 in 179 days ? _____
Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The account earns an annual interest rate of 1.4%. After the final deposit, they move the accumulated savings to a brokerage account and invest in the stock market, where they earn an average annual return of 6.9% for the following 16 years. How much will they have in the account at the end? O a. $131,280 O b. $404,155 O c. $137,311 O d. $296,336 e. $302,138 f. $279,603 g. $496,270 h. $249,511
3. Jeff has one savings account with the interest rate of 3.3% in a bank. If he deposits 1200 pesos to the savings account, how much money will he have after 6 years? A. PhP 1437.60 C. PhP 1337.60 B. PhP 1237.60 D. PhP 1137.60
Suppose a child's parents decide to make annual deposits to a savings account, making the first deposit on their child's fifth birthday and the last deposit on their fifteenth birthday. If on the 18th, 19th, 20th and 21st birthdays ¢ 2,000, ¢ 2,400, ¢ 2,800 and ¢ 3,200 are withdrawn and the interest rate is 8% per year. What are the annual deposits in years five to fifteen?
Starting today, Jamie deposits $100 in a savings account at the beginning of each month. If the account earns 6 percent annually, what will the account value be after 6 years? a) 8,640.89 b) $8,684.09 c) $739.38 d) $697.53 Hide question 33 feedback Correct!