Time Value of Money Calculate the amount of money that will be in each of the following accounts at the end of the given deposit period: Annual Compounding Period Deposit Amount Interest (Compounded every Period Account Deposited Rate ___ Months) (Years) Jawa Scottish RM 1,000 10 % 12 10 Mawar Berduri 95,000 12 1 1 The Piranha 8,000 12 2 2 Lea Rose 120,000 8 3 2 Bunga Larangan 30,000 10 6 4 Lin Suhaimi 15,000

Q: (Related to Checkpoint 5.3) (Compound interest with non-annual periods) Calculate the amount of…

A: Future Value = Present Value * (1 + (Interest rate / Compound))^(Time  * Compound)

Q: 2. Use this information to answer the following questions: a) Let's say you invest $10,000 into each…

A: Computation A:

Q: None

A: To calculate the balance of a fixed deposit account with compound interest, you can use the compound…

Q: erm deposit krista invested $6500 ina 181 day term deposit and recieved a total of $6637 when it…

A: The deposit made in the banks carry the interest and due to the interest future value of money…

Q: Principal Compounded quarterly Rate Time The principal represents an amount of money deposited in a…

A: Answer: Calculation of the amount of money in the account after the given number of years: Formula,…

Q: By working from year to year as in the worked example above, calculate the amount accumulated after…

A: Future Value (Time Value of Money) In this question, we have to calculate the Future Value of a…

Q: You borrow money on a self-liquidating installment loan (equal payments at the end of each year,…

A: The formula to calculate installment is Loan = annual installment×1-1+i-ni   Total interest payment…

Q: What will be the accumulated amount in an investment account

A: As per the concept of the Time value of money, today’s money value has more valuable than tomorrow.…

Q: If you wish to withdraw $200 at the end of EACH of the next 3 years earning 3.5% per year, what…

A: Present Value of annuity refers to the current value of all the series of payments or income at…

Q: You deposit $ 6,957 in an account that pays 1 % simple interest. How much do you have after 12…

A: Deposit amount (P) = $ 6,957 Interest rate (r) = 1% Period (t) = 12 Years

Q: What is the interest earned in a savings account after 12 months on a balance of $4000 if the…

A: Since compounding is annually and we have to find the interest earned for 12 months, formula would…

Q: A payment of $400 was made at the end of each year for five years into a savings account. The…

A: Principal amount=Payment per year×Number of years=$400×5=$2,000

Q: Calculate (a) the interest payable and (b) the total amount owing on the following deposits at…

A: If the interest is simple interest, then interest will be calculated on the principal amount only…

Q: Consider a loan of $2.5 million that is paid quarterly over a period of 10 years. Calculate the…

A: The process of raising money or capital to support investment or commercial ventures is referred to…

Q: compounded

A: Formula to calculate preset value: PV = FV/(1+r/n)^nt Where PV is the present value, FV is the…

Q: Use the formula P = 1+ A nt 1 to determine the periodic deposit. Periodic Deposit Rate Time…

A: Number of years = 8Interest rate = 10% compounded semi-annuallyFinancial goal = $350,000To find:…

Q: You want to have $65,000 in your savings account 11 years from now, and you're prepared to make…

A: Solution:- When an equal amount is deposited each period at end of the period, it is called ordinary…

Q: John takes out a loan of 10000 at effective rate į. You are given: The first annual payment is made…

A: A loan refers to a contract between two parties where a sum is provided by one party to the other…

Q: A deposit $400 today in an account paying 7% per year. What would be the balance in your account…

A: We need to use compound interest formula to calculate account balance after 6 years A=P(1+i)n where…

Q: Before purchasing a used car, Cody Lind checked www.kbb.com to learn what he should offer for the…

A:

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:

A: Future value = Present value(1 + Rate)^Time

Q: The sum of money $ 1352 deposit in bank in 2 years at 4 % per annum of compound interest is Select…

A: Amount deposited in bank = $ 1352 Years(n) = 2 Interest Rate(r) = 4% amount after 2 years =…

Q: The bank statement opposite shows transactions over a one-month period for a savings account that…

A: Interest on savings account is calculated on daily balance in the account.

Q: How much money would you need to deposit today at 8% interest compounded quarterly to have $15,000…

A: Compounding interest the interest you earn interest on interest amount.

Q: How much must be placed in a two-month term deposit earning 4.8% in order to earn $275 interest?…

A: A term deposit refers to an investment that is offered for a set time where a periodic sum has to be…

Q: What is the amount of interest expense in the current year and the following year from this note?…

A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…

Q: $100 is deposited in the bank and remains in the account for three years, earning 6% per year with…

A: Here, Initial Deposit Amount is $100 Interest Rate is 6% Interest Method is Simple Interest Method.

Q: Michael Sanchez purchased a condominium for $94,000. He made a 20% down payment and financed the…

A: (a) Debt = $94,000×80%=$75,200 Period = 30 years Rate = 5% Monthly payment (using the table given) =…

Q: In order to buy a vacation home, Neal and Lilly took out a 30-year mortgage for $250,000 at an…

A: A mortgage refers to a covered loan borrowed for purchasing real estate. The real estate itself acts…

Q: Carol made a deposit of $1027.00 into a bank account that earns interest at 7.9% compounded…

A: The amount that will be deposited today will be more in dollar terms (not in worth) as the amount of…

Q: 2 Loan Amount (80) 3 Annual Interest Rate 4 # times per year interest accrued 5 Periodic Rate 6 Term…

A: A fully amortizing loan is where the balance keeps reducing after each payment until it becomes zero…

Q: A bank charges an interest rate of interest is 6% compounded annually. A customer takes a loan of…

A: In order to find the outstanding balance one has to deduct the payment from the loan amount.

Q: You have an annual installment loan of Rs.150,000 from ABC bank for 5 years. If the loan requires an…

A: loan 150000         year 5         rate 5%                     year beginning of year…

Q: A person deposits $150 per month into a savings account for 2 years. If $75 is withdrawn in months 4…

A: Cash is considered as one of the most important and valuable factors of the business, without which…

Q: Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to rour…

A: in this we have to calculate from table and also by formula.

Q: a) Let's say you invest $10,000 into each account. What is the final amount after 10 years? b) How…

A: Future Value: It represents the future worth of the present amount and is estimated by compounding…

Q: 1) Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and…

A: Future Value: The worth of the current asset at a future date in which computation is based on the…

Q: Installment Loan Principal Term Length Interest Rate Monthly Payment A. $33.62 The 40th payment has…

A: Lets understand the basics.When one person has taken loan from another person then principle as well…

Q: Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to…

A: present value of annuity. PV = A * 1-(1+r)-nr where , PV = present value of annuity. A = periodic…

Q: question 4 out 20

A: GUIDE: (1) Compound Interest A=P(1+nr​)ntwhere:A = final amountP = initial amount depositedr =…

Q: Problem #7: same amount of interest in the last 6 months of year 8, what is i? Answer as a…

A: Present value is the current value of a future sum of money or stream of cash flows given a…

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.