Answered: Suppose you deposit $10,000 on March…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Suppose you deposited $41,000 in a bank account that pays 5.75% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days? a. $42,598.28 b. $42,571.67 c. $43,426.30 d. $42,793.66 e. $42,602.05
You have just opened a savings account which pays monthly interest at a rate of j12 = 5.5% p.a. You wish to accumulate $20,000 by depositing the same amount into the account at the end of each month, for 2 years, starting in a month's time. a) Determine the required size for the monthly deposit, R. Apply a sanity check. b) Construct a sinking fund table showing 24 deposits with a fixed interest rate of 5.5%. Describe and apply a sanity check to your table. c) Suppose that the interest rate is renewed every three months (quarterly) over the course of the two years as follows: Year 1 Q1 5.5% 02 Q3 2.8% 4.5% 04 01 4.0% 4.2% Year 2 Q2 04 03 3.8% 2.5% 7.5% If you maintain the same monthly deposit of R determined in part a), find the size of your sinking balance after two years. Will you meet your target of $20,000? Describe and apply a sanity check for your answer. d) Construct a sinking fund table showing 24 deposits with the variable interest rate. Describe and apply a sanity check to…
You arc making $5.000 monthly deposits into a fund that pays inte rest at a rate of 6% compounded momhly. What would be the balance at the end of 15 years? Pls make a cashflow diagram. (a) $1,063,879 (b) $1.358.169 ( c) $ 1,452,053 (cl) $1.459,423
You deposit $600 today into a fund that you intend to leave invested for 6 years. The fund earns 6% interest compounded annually. Indicate the inputs to be entered into the financial calculator keys. What is the value of the fund to be accumulated at the end of year 6? (Round future value answer to two decimal places (e.g., 52.75) and interest rate to one decimal place (e.g., 527.5).) Inputs Calculator N Keys Future value $ 6 I 6 PV 600
Suppose you want to save $1,000,000 for a retirement fund in 35 years. You anticipate making regular, end-of-month deposits in an annuity that pays 9% compounded monthly. How much should you deposit each month? Use this formula: How much of the $1,000,000 retirement fund comes from deposits and how much comes from interest?
If you put $10 in a savings account at the beginning of each year for 11 years, how much money will be in the account at the end of the 12th year? Assume that the account earns 11%, and round to the nearest $1.00. a. $217 b. $241 c. $68.89 d. $76.47 Please solve problem and give correct answer choice above. Please show all work and steps.
Suppose you borrowed $38,000 at a rate of 9.0% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? Select the correct answer. a. $11,735.41 b. $11,723.41 c. $11,726.41 d. $11,732.41 e. $11,729.41
If you deposit RM3,305 in an account earning 12%, how much would you have in the account after 15 years? Select one: a. RM18,090 b. RM23,456 c. RM12,879 d. RM17,869
Your goal is to accumulate $60,000 in seven years' time. What monthly deposit must you make into a savings account to reach your goal? Interest rates are 12% p.a. compounded monthly. a. $1,059.16 b. $714.29 c. $5,947.06 d. $459.16
Use the following 8% interest factors 7 periods 8 periods 9 periods Select one: Present Value of Ordinary Annuity. a. $319,099 b. $267,687 C. $226,800 d. $172,398 5.2064 5.7466 6.2469 What will be the balance on September 1, 2029 in a fund which is accumulated by making $30,000 annual deposits each September 1 beginning in 2022, with the last deposit being made on September 1, 2027? The fund pays interest at 8% compounded annually. Future Value of Ordinary Annuity. 8.92280 10.63663 12.48756
19, Suppose starting this year you decide to make deposits of $5,000 at the end of each year for the next five years in a bank account paying 10% interest. If you currently have $3,000 in the account how much will you have at the end of five years? 1. $25,255.05 2. $36,742.22 3. $35,357.03 4. $30,272.35 5. $28,500.60
Suppose that P 4500 is deposited each year into a bank account that pays 8% interest compounded quarterly. How much would be accumulated in his fund by the end of the 4th year? The first payment occurs at time zero (now). Please draw a cash flow diagram. Thank you

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Suppose you deposit​ $10,000 on March 21 in a fund earning simple interest at r​ = 13%. How much will you have exactly 6 months​ later? A. ​$10,655.34 B. ​$10,650.00 C. ​$10,664.44 D. ​$10,658.91

Suppose you deposit $10,000 on March 21 in a fund earning simple interest at r = 13%. How much will you have exactly 6 months later? A. $10,655.34 B. $10,650.00 C. $10,664.44 D. $10,658.91