Table 1 shows deposit into saving account with rate of return 10% per year. Determine the future value at year 20. Table 1: Deposit Money into Saving Account Information | 1 2,000 2 2,000 Year 3 2,000 Deposit, RM per year 800 1,800 1,600 1,400

Q: The following investments are made at the end of each year: Year 1 $3,000 4,000 5,000 Year 2 Year 3…

A: Compound interest is the interest earned on both the principal amount and the accumulated interest…

Q: What lump sum of money must be deposited in a bank account at present time so that P 500 monthly can…

A: An annuity is a sequence of payments or deposits occurring at equal intervals of time for a given…

Q: Find the future value for each of the following scenarios, where m is the periodic deposit and r is…

A: Deposits in finance generally refer to money kept in a bank or any other financial institution where…

Q: 4. The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…

A: The concept of TVM states that the money received now is worth more than the same amount of money…

Q: Question 2 If one makes quarterly deposit of $1250 into an account that pays interest at a rate of…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: ying a ye er 10 yea 30.000?

A: Formula to calculate the present value or the amount to be deposited today is: P = A/(1+i)^n Where P…

Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: 4: If you make 6 annual deposits of $500 in your savings account, which earns a 5% compounded annual…

A: Future value of money grow with more deposits and more amount of interest being accumulated over the…

Q: What is the present value of the combined cash flows?

A: Present Value: It represents the present value of the future cash flow stream.  It is computed by…

Q: 006's 7,075 6% 0.943 0.890 0.840 0.792 10% 0.909 0.826 0.751 0.683 12% 0.893 0.797 0.712 0.636

A: Amount received = $25,000 Interest rate = 10% Time period = 4 Years

Q: 800

A: Formula to calculate the future value of ordinary annuity is: FV = C*[(1+I)^n - 1/i] Where C is the…

Q: With an interest rate of 6.5% p.a, compounded monthly, (i) Calculate the equivalent value of all…

A: Here we will have to use the concept of time value of money and determine the values at given points…

Q: If the intrest rate is a 12%p.a. the amount to be invested today to earn an annuity of rs.1000 for 5…

A: Interest Rate = 12% Annuity = 1000 Time Period = 5 years END OF PERIOD ANNUITY Investment = ?

Q: Question 2: In the following cash flow, how much should be deposited at the beginning of year 1 so…

A: Calculate the present value (PV) of the cash flow in Year 1 (PV 1) by using the EXCEL PV function as…

Q: The table below shows a series of cashflows. At an interest rate of 10% per year, what are the…

A:

Q: Assuming an interest rate of 6.3 percent, what is the value of the following cash flows four years…

A: $3,225 is received one year from today and we have to determine its value four years from today. So,…

Q: Question 2 If one makes quarterly deposit of $1250 into an account that pays interest at a rate of…

A: Quarterly Deposit = 1250 Interest Rate = 6% Compounded monthly Time Period = 2 years or 8 quarters…

Q: Find the present worth of the cash receipts in the accompanying diagram if i = 8% compounded…

A: The present value is the present worth of future cash flows discounted at a rate of interest and…

Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…

A: Compound Interest = P(1+r/n)^nt - PWhere P = Principal = P50,000R = Rate on interest = 3%N = number…

Q: (Table: Account Balance) Savings Account Balance Savings Account Balance (interest rate = 10%)…

A: Compound interest: It is the interest on interest calculated on the principal amount of a loan or a…

Q: please show solutions and answer only letters A,B,C

A: In finance, the future value is maturity or terminal value for a current invested amount that is…

Q: 4. The amount of P50,000 was deposited in the bank earning an interest of 7.5% compounded…

A: Compound Interest Depositing the cash into the bank for a specific time period can benefit the…

Q: A man deposited P5,000 in a bank at a rate of 10% per annum for 9months and 25days. Find the…

A: Future value of deposits is the sum of all the deposits compounded using the provided discount rate.

Q: What will the deposited amount be at the end of 5 years if P15,000 is deposited in an account…

A: Information Provided: Term = 5 years Rate = 4% compounded quarterly Principal = 15,000

Q: 1. Find the difference between the simple interest and compound interest on a savings account…

A: Simple Interest and Compound Interest   Calculating the interest above the principal amount is known…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

A:

Q: What is the future value of ​$5,000 in a bank account for years at 3 percent compounded​ bimonthly…

A: Future value is the value of an asset or investment at a specified date in the future, given a…

Q: Determine the present value of the following cash flows; P4,000 at the end of 4th month and every…

A: Given information= P4000 at the end of 4th month and every month thereafter till the 12th Month…

Q: n                          Net cash Flow                             0…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: What will a deposit of $2500 at 7.8% compounded semiannually be worth if left in the bank for six…

A: Formula for Future Value FV=PVx(1+r/2)nxt Where, FV = Future Value PV = Present Value r = rate of…

Q: Assuming an interest rate of 10%, how much (rounded to nearest dollar) will need to be deposited in…

A: Annual deposit = Accumulated saving at the end of 8th year / Future value factor at 10%, 8 years

Q: With an initial deposit of 200 dollars, the balance in a bank account after t years is f(t) =…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: What will a deposit of $5500 at 7.8% compounded monthly be worth if left in the bank for 5 years?…

A: In the TVM calculator the input parameters will be: N  = 60 (5 years * 12 months in a year = 60) I%…

Q: Find the present worth of the cash receipts in the accompanying diagram if i = 8% compounded…

A: Computation as follows: Hence, the value of P is $1181.89.

Q: If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: Gary King will deposit $27500 into an account today that earns 13% per year compounded annually.…

A: Given information: Principle amount = $27,500 Rate of interest = 13% Period = 5 years

Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.