QUESTION 3 Suppose you deposit $2,500 in a CD paying 8% interest, compounded every other month. How much will you have in the account after 15 years? Round your answer to the nearest cent.

Q: How much will accumulate in three years by depositing $540 at the end of each of the next 12…

A: The future value can be compared by looking at how much money you will have in the future from the…

Q: Suppose that your Stafford loans plus accumulated interest total $31,811 at the time that you start…

A: Installment is the amount of periodic payments a borrower has to make in order to repay his loan in…

Q: Q2. You are considering investing $2,000 in a bank term deposit for 5 years. The term deposit will…

A: We will use the concept of time value of money (TVM) to solve the question. According to TVM, money…

Q: Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you…

A: Interest is the cost of borrowing or lending money.

Q: you deposit money today in an account that pays 13.5% annual interest, how long will it take to…

A: Future value = Present value x (1+i)^twherePresent value = amount deposited today = $1…

Q: Imagine that you have $8,000 to invest for 19 years. How much more interest will you earn if you…

A: When we are investing into particular security, the value of it increases over the period of time.…

Q: How much money would you need to place in an account to have $1,000 10 years from today? Assume the…

A: The formula used as follows: Present value=Future value1+innt

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: How much money will you have after 4 years if you deposited P10,000.00 in a bank that pays 6% simple…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 2. If you deposit $2500 two years from now in a bank account that pays 4% compounded annually, how…

A: The amount that is deposited today will be more in dollar terms at certain future date due to the…

Q: You deposit $4700 in an account earning 3% interest compounded continuously. How much will you have…

A: Future Value Future value refers to the value of the investment at a certain point in time in the…

Q: You would like to have $700,000 when you retire in 40 years. How much should you invest each quarter…

A: Required future Value "FV" is $700,000 Time period of retirement = 40 years Interest rate is 4%…

Q: You plan to deposit $50 per month in a savings accoun with a monthly interest rate of 0.5 %. How…

A: Monthly deposit (C) = $50Monthly interest rate (r) = 0.005 or 0.5%Number of deposits (n) = 60 (i.e.…

Q: How much would you need to deposit in an account now in order to have $20,000 in the account in 4…

A: Interest rate = 5%No. of years = 4FV = 20000

Q: How much would you need to deposit in an account each month in order to have $40,000 in the account…

A: The concept of time value of money will be used and applied to get the solution.   The amount to be…

Q: Assume you can obtain an annual interest rate of 12% compounding monthly.  You are going to invest…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: 1. If you deposit $28,688 annually at the end of every year in a bank account paying 5% annually,…

A:

Q: How much should you deposit in an account so that you can withdraw $5300 every year for the next 18…

A: Using excel PV function

Q: How much money would you need to deposit today at 16.12% annual interest compounded monthly to have…

A: Present value refers to the current value of the future cash flow. Present value can be determined…

Q: Time value. You can deposit $12,000 into an account paying 6% annual interest either today or…

A: The amount that a present investment will gain in value over time when kept in a compound interest…

Q: Imagine that you have $7,000 to invest for 9 years. How much more interest will you earn if you…

A: Interest is the cost of borrowing or lending the money.

Q: If you put $259 into a bank account that pays 3.5% interest, compounded 9 times per year, how much…

A: Workings:

Q: 14

A: Rule 72 is the equation that is best used to find the duration it would take to double the amount at…

Q: You deposit $3500 in an account earning 2% interest compounded quarterly. How much will you have in…

A: Deposit amount (P) = $3500 Interest rate = 2% Quarterly interest rate (r) = 2%/4 = 0.50% Period = 18…

Q: If you deposit $500 every 6 months for 7 years at an interest rate 20% compounded quarterly, how…

A: The amount at the end of 7 years is the future value of the semiannual deposits.

Q: If you deposit money today in an account that pays 12.5% annual interest, how long will it take to…

A: The rate of interest is 12.5% Assume, The present value is $1. The future value is $2 as the amounts…

Q: I hope you could write the formula and process more clearly. Thank you

A: To solve this problem, we can use the formula for the present value of an…