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...

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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 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
Suppose on January 1st you deposit $100 in an account that pays a nominal interest rate of 11.33463% with interest added (compounded) daily. How much will you have in your account on October 1st or 9 months later?
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
Suppose a credit card was used to make a $7800 purchase at16.8% interest with a monthly payment of $193. Complete the following. (a) Calculate the time it will take to pay off the debt making only the given payment each month. (b) Calculate the total interest paid. (c) Find the amount of money saved over the lifetime of the debt if twice the amount of the given monthly payment is paid each month.
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
You have $2,000 invested in a bank account that pays a 4 percent nominal annual interest with daily compounding. How much money will you have in the account at the end of July (in 132 days)? (Assume there are 365 days in each year.) a. $2,029.14b. $2,028.93
If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month into the account for the next 10 years, how much will you have in 10 years? Assume monthly compounding. Enter your answer rounded to 2 decimal places.
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.

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