Tyrone invested a sum of money 10 years ago in an account that paid 2.25% per year compounded quarterly. He recently closed the account and received Php175,000. How much did he originally invest in this account?

Tyrone invested a sum of money 10 years ago in an account that paid 2.25% per year compounded quarterly. He recently closed the account and received Php175,000. How much did he originally invest in this account?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Cliff deposited $9,000 in a brokerage account, and 10 years later he closes out the account, which…

A: Present Value = pv = $9000Time = t = 10Future Value = fv = $20,500

Q: Brianna invested the profit of his business in an investment fund that was earning 3.75% compounded…

A: Present value refers to an amount that is being invested initially in the investment for a definite…

Q: Elwin Tulpo invests Php1,000 in a Bank at 10% a year for five years, but when the interest is…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Assume your uncle died one year ago and had left you the money in his saving account at that date.…

A: Amount Deposited 16 years back = PKR 550,000 Years(n) = 16 Interest Rate (r) = 13%

Q: At the end of 5 years, Tom earned $60 on an investment that had earned 4%. How much was the original…

A: It is assumed the given interest is compounding interest, compounded annually.

Q: Engr. Secula started saving ₱2000.00 each year for 25 years until his retirement at 65years old. A…

A: Future value of Annuity can be calculated using the following formula: FVAn=A1+rn-1r where FVAn=…

Q: A rich man deposits money at a bank with 11.28% interest compounded annually 5 years ago. After…

A: Total money received can be obtained by multiplying the total monthly payment multiplied by number…

Q: Juan invested an amount of $16,000.00 in a mutual fund. After 3 years and 6 months the accumulated…

A: Invested Amount $ 16,000.00 Future Value $…

Q: Fifteen years ago, you deposited $15,400 into an account. Eight years ago, you added an additional…

A: Deposited $15400 15 years ago. Deposited $6000 8 years ago Interest for First 7 years is 10 %…

Q: Obtain today's value of the investment account.

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: Kerry invests $234 in a savings account that earns 2.1% compounded annually. Andy invests $234 in a…

A: Formulas: Future value = Present value *(1+rate)^years

Q: Steven invested the profit of his business in an investment fund that was earning 3.50% compounded…

A: Present value refers to an amount that is being invested initially in the investment for a definite…

Q: Sarah deposited $26,500 into a fund at the beginning of every quarter for 16 years. He then stopped…

A: Compound interest= p*(1+r%/n)^tn A.) Around $358903 stacked up at the end of 16th year.

Q: Mr.perera's son kumar has just completed 15 years of age. In order to provide sum of Rs.25000 on…

A: Future value is the ultimate value of an asset that an investor expects to receive from his…

Q: John deposited his money in a bank that gives a continuous rate of flow of money of $10,000 per year…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: man borrowed some money from a private at 5 % simple interest per annum. He landed this money to…

A: Simple interest is very simple that means there is only interest on the principal amount and there…

Q: Your cousin deposited some money into an account earning 4.75% interest, compounded daily, three…

A: Interest Rate (rate) = 4.75%Type of compounding = DailyNumber of times interest compounded in a year…

Q: Thirty years ago, your parents opened an investment account with a single deposit of $2,000. They…

A: Investment amount (P) = $2000 Period (n) = 30 Years Accumulated amount (F) = $26,905

Q: Darien invests $10,000 in an account that pays 3.2% interest per year, compounded semi-annually.…

A: The amount of money can be calculated as future value of the principal amount.

Q: how much was in the account immediately after his 35th deposit if: a)the account earned annual…

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: Twelve years ago, you deposited RM3,400 into an account. Seven years ago, you added an additional…

A: FV = PV* (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest (percentage…

Q: Shiro’s grandfather has just announced that he’s opened a saving account for Shiro with a deposit of…

Q: Michelle Payne deposited $24,000 in a savings account paying 6.25% simple interest. How long (in…

A: Formula: FV=PV×1+rt

Q: Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: How much money was withdrawn from Mr. Cruz’s account on the 5th year, after investing P25, 000 on a…

A: The amount which is paid by bank on deposit is known as interest. This interest is credited to the…

Q: How much will Cyrus receive 5 years after his last deposit if he deposited 1,092 Php annually for 10…

Q: 3. You are given the duty of valuing your company shares. Expected net income of the next year (year…

A: Free cash flow refers to the Future cash inflow from company's operations and business less change…

Q: When my father passed away I inherited a back account containing $18,000 earning 4% effective annual…

A: Money is being shuffled from one account to another account earning a higher interest rate. The…

Q: Michelle Payne deposited $4,000 in a savings account paying 6.25% simple interest. How long (in…

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: Your grandma invested some money 64 years ago into an account earning 1.82% per year, compounded…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Five and a half years ago an individual invested $10000 in a retirement fund that grew at the rate…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Icarus Airlines is proposing to go public, and you have been given the task of estimating the value…

A: The total value of the firm refers to the PV of all its future cash flows to determine the worth of…

Q: Mr. Ali deposited 500 OMR today into a security that pays him 10 % interest compounded. He wanted…

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

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Calculation

VIEW

Step 3: Final Answer

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Please help
Miguel deposited $11,500 into a fund at the beginning of every quarter for 15 years. He then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 2.69% compounded monthly. a. What was the accumulated value of the fund at the end of year 15? b. What was the accumulated value of the fund at the end of year 19? c. What is the total amount of interest earned over the 19-year period? 2 company deposited $8,500 into an investment fund at the beginning of every quarter for 4 years. It then stopped making deposits into the fund and allowed the investment to grow for 3 more years. The fund was growing at 4.50% compounded monthly. a. What was the accumulated value of the fund at the end of 4 years ? b. What was the accumulated value of the fund at the end of 7 years ? c. What was the amount of interest earned over the 7-year period?
Engr. Secula started saving ₱2000.00 each year for 25 years until his retirement at 65 years old. A year after he retired, he withdrew ₱10000.00 for a period of 5 years. In the ninth and tenth years, he decided to only withdrew ₱5000.00 per year. In the twelfth year, he withdraws the remaining money in his account. If the interest rate was 9% per year: a) Draw the Cash flow diagram with function symbols. b) What was the final withdrawal from his account?
PLEASE SHOW ALL WORK Richard deposits $ 5400 and got back an amount of $ 6000 after a year. Find the simple interest he got.
Lawrence borrowed some money 5 years ago at 15% interest compounded semiannually. He paid Php 6,700 on the due date to cover the principal and interest. How much did he borrow?
Your grandma invested some money 64 years ago into an account earning 4.91% per year, compounded quarterly. She now has $11804 in her account Round to the pekny. How much money did your grandam invest 64 years ago? $ a. b. How much interest did she earn on the investment? $
Matthew invested the profit of his business in an investment fund that was earning 3.75% compounded monthly. He began withdrawing $2,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 3 years, how much money did he initially invest in the fund? $ $0.00 Round to the nearest cent
Benjamin wants to have $12,000 in 15 years after investing in an account that earns 4.2% compounded quarterly. How much should he invest?
Ben invested $7,500 twenty years ago with an insurance company that has paid him 6 percent simple interest on his funds. Charles invested $7,500 twenty years ago in a fund that has paid him 6 percent interest, compounded annually. How much more interest has Charles earned than Ben over the past 20 years?
Sonny who invested ₱45,800 had ₱82,420 returned to him 4 years and 4 months later. At what interest converted monthly did his money earn?
Monica invested the profit of his business in an investment fund that was earning 2.75% compounded monthly. He began withdrawing $3,500 from this fund every 6 months, with the first withdrawal in 4 years. If the money in the fund lasted for the next 5 years, how much money did he initially invest in the fund?
Erik invested $575 at the end of every month in an investment fund that was earning interest at a rate of 4.20% compounded monthly. He stopped making regular deposits at the end of 6 years when the interest rate changed to 6.69% compounded quarterly. However, he let the money grow in this investment fund for the next 4 years. a. Calculate the accumulated balance in his investment fund at the end of 6 years. b. Calculate the accumulated balance in his investment fund at the end of 10 years. c. Calculate the total interest earned over the 10-year period.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS