Suppose you have an investment account that earns an annual 9% interest rate, compounded monthly. Ittook $500 to open the account, so your opening balance is $500. You choose to make fixed monthlypayments of $230 to the account each month.Complete the table below to track your savings growth.MonthsAmount in account (Principal)9% Interestgained(Remember todivide by 12 formonthly interest)Monthly Payment123$500$230$230$230$230+$230$230106$230$23089$230$23010$23011$23012What is the total amount gained in interest over this first year of this investment plan?

Here's the detailed breakdown of the calculations for each month:Step-by-Step…

Answered: Suppose you have an investment account…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

See similar textbooks

Similar questions

Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Suppose you invest $1,000.00 in an account with an annual interest rate of 6% compounded monthly (6%÷÷12 = 0.5% each month). At the end of each month, you deposit $275.00 into the account.Use this information to complete the table below. Round to the nearest cent in each step as needed. Month Prior Balance 0.5% Intereston Prior Balance Monthly Deposit Ending Balance 0 $1,000.00 1 $1,000.00 $275.00 2 $275.00 $1,561.40 3 $1,561.40 $275.00 4 $9.22 $275.00
Suppose you deposit $3600 to open an account that earns 6% interest compounded monthly. You are trying to save money and find that you are able to put away an additional $50 each month. Write a recursive formula to show the amount of money you will have in the account at the end of each month.
How much would you need to deposit in an account now in order to have $10,000 in the account in 8 years? Assume the account earns 5.5% interest compounded daily. Edit View Insert Format Tools Table
How much would you need to deposit in an account each month in order to have $30,000 in the account in 8 years? Assume the account earns 7% interest. S Submit Question Search hp
An account today is credited with monthly interest thereby bringing the account balance to $6,660. The interest rate is 6.60% compounded monthly. You plan to make monthly withdrawals of $55 each. The first withdrawal is in exactly one month and the last in exactly 12 years. Find the account balance immediately after the last withdrawal. Question 18Select one: a. $3516 b. $3197 c. $2906 d. $2642 e. $2402
You open a savings account that compounds interest 3 annually with an APR of 3% . If you initially deposit $1,000 in your account and leave it to accumulate interest, what will your balance be at the end of 1 year?
You deposit $400 at the end of each month into an account earning 3.7% interest compounded monthly. a) How much will you have in the account in 30 years? P/Y = C/Y = N = I/Y = % PV = $ PMT = $ FV = $ (round to the nearest cent) b) How much will be the total amount of money deposited into the account after 30 years? Total Deposited = $ (enter a positive value) c) How much total interest will you earn? Total Interest= $ (enter a positive value, and round to the nearest cent) ( Explain all point of question with proper step by step Answer. )
You currently have $4,000 in a bank account that pays an annual rate of 1%, compounded monthly. You plan to make additional monthly deposits of $200, starting at the end of this month. How many payments will you have made when your account balance reaches $50,000? Answer N I PV PMT FV
Suppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest credited to the account at the end of each year. Assuming that no withdrawals are made, complete the following: a. Find the balance in the account after 5 years. b. Find the balance of the account after 9 years and 10 months.
Provide answer this financial accounting

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Pfin (with Mindtap, 1 Term Printed Access Card) (…

Finance

ISBN:

9780357033609

Author:

Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CFIN

Finance

ISBN:

9781337671743

Author:

BESLEY

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Corporate Fin Focused Approach

Finance

ISBN:

9781285660516

Author:

EHRHARDT

Publisher:

Cengage

SEE MORE TEXTBOOKS