Velma deposits $2,534 at the end of each quarter, increasing the deposit by $147 per quarter. How much will Velma have at the end of 5 years if the bank pays a nominal annual rate of 6% compounded quarterly?
Q: A company deposits $10,000 in a bank at the beginning of each year for 20 years. The account earns…
A: Effective Annual Rate is a modified rate of return where it considers the compounding effect.…
Q: Ms. Simms made deposits of $540 at the end of every three months into a savings account. For the…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: You currently have $4,000 in a bank account that pays a nominal rate of 1%, compounded monthly. You…
A: The interest that is calculated on all the accumulated interest of previous years or months plus…
Q: A decreasing annuity account pays 35% interest rate, compounded quarterly. Withdrawals of $200 per…
A: Present value is the sum of the current value of money of future cash flows. It is also known as a…
Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. What…
A: "Hi, Thanks for the Question, Since you asked multiple sub parts, we will answer first three sub…
Q: A company has a $160,000 note due in 7 years. How much should be deposited at the end of each…
A: Sinking fund: It is an account that uses compound interest and into which periodic deposits are…
Q: Equal – quarterly deposits of P 2,000 for 2 years which starts immediately is made at a savings…
A:
Q: If $450 is deposited at the end of each quarter into an account paying 10% compounded quarterly, how…
A: The question is based on the concept of Annuity.
Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…
A: We need to use future value of ordinary annuity formula to calculate monthly payment PMT =FVn(1+r)n…
Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals when a first…
A: The flow of payments which are made at regular interval of time are termed as annuity when amount is…
Q: The owner of Oak Hill Squirrel Farm deposits $2,000 at the end of each quarter into an account…
A: In the given question we need to compute the future value after 9 years, 6 months.
Q: Starting three years from today, you make equal annual deposits of $5,000 into an account which…
A: Effective annual rate is calculated using the formula: EAR=1+rmm-1=1+12%22-1=1.062-1=12.36%
Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. If…
A: FV of annuity = P * [(1+r)^n-1] / r Where, P = amount of each deposit r = rate of interest per…
Q: You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will be…
A: Given, Amount borrowed = $28000 Interest Rate = 12% No. of years = 4
Q: You have $5,000 invested in a bank account that pays a 6percent nominal annual interest with daily…
A: Amount invested, PV = $ 5,000Interest rate = 6% annual interest rate compounded daily.Hence,…
Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: A depositor puts $30,000 in a savings account that pays 4% interest, compounded quarterly. Equal…
A: A perpetuity is a security that pays for an infinite amount of time. In finance, perpetuity is a…
Q: A person wants to deposit $10,000 per year for 6 years. If interest is earned at the rate of 10…
A: We need to use future value of annuity formula to calculate amount after 6 years FVn =PMT(1+i)n -1i…
Q: IF you deposit $300 each quarter into an account earning 3.2% compunded quarterly, how many years…
A: Quarterly payment (PMT) is $300. Annual rate of return is 3.2% and Rate of return per quarter is…
Q: Commercial bank pays 12% interest and compounds quarterly. If 1000 are initially, how much shall it…
A: Computation:
Q: Mark Welsch deposits $7,200 in an account that earns interest at an annual rate of 8%, compounded…
A:
Q: A bank is offering 10% compounded quarterly. If you put $200 in an account, how much will you have…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Suppose you deposit $1,250 at the end of each quarter in an account that will earn interest at an…
A: Computations as follows: Hence, the amount available at the end of four year is $24,225.28.
Q: A person deposits $200 every month for 7 years. If the account pays 4% compounded monthly then how…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Parker borrowed $283,000 at 7.5% compounded quarterly to finance the purchase of a pizza franchise.…
A: Given: Borrowed = $283,000 Interest rate = 7.5% Compounding quarterly Years = 10
Q: An accountant wants to withdraw $30,000 from an investment at the beginning of each quarter for the…
A: Time value money is the concept widely used by the management and individual to determine the…
Q: A bank offers an investment account that has an annual interst rate of 9.9%, compounded quarterly.…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: The company sells products to a customer for $60,000 and will receive $15,000 at the end of the…
A: Time value of money is the concept that states that the value of money have more worth than the same…
Q: $480 is deposited at the beginning of every 6 months into a savings account. This will continue for…
A: An account where deposit made by accountholder is credited and credit balance is added with interest…
Q: Saud borrowed $90,000 now. He will pay off the loan with 10 equal quarterly payments. The first…
A: To find the quarterly payment one can apply the formula in excel called PMT which calculates the…
Q: You make deposits of $300 each year for the next 17 years at 5 % compounded annually. How much is in…
A: Annual deposit (P) = $300 Interest rate (r) = 5% Period (n) = 17 Years
Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…
A: Payment per period can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv],…
Q: You agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end…
A: Data given:: No. of deposits = 24 Amount deposited at the beginning of each month = $500 FV= $12800…
Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. (…
A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…
Q: CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next…
A: Compound Amount= A=P(1+r)nt A= FInal amount P= Initial Investment r= interest rate t= No. of times…
Q: Sixty monthly deposits are made into an account paying 6% nominal interest compounded monthly. What…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the…
Q: You are about to borrow $8,000 from a bank at an interest rate of 8% compounded annually. You are…
A: The money which is taken as a loan from the bank or from any financial institution is known as…
Q: For 8 years, $52 is deposited each week into an account that earns 2.1% interest, compounded weekly…
A: This question has two parts, First - $300 compounding every week for 8 years which is simple…
Q: The owner of Oak Hill Squirrel Farm deposits $3,000 at the end of each quarter into an account…
A: This question require us to compute the value at the end of 6 years, 6 months from following…
Q: Deposits are made at the end of years 1 through 7 into an account paying 5% per year interest. The…
A: Time value of money- It is based on the concept that money earned today is worth more than similar…
Q: You plan to make five deposits of $1000 each, one every 6 months, with the first payment being made…
A: "In case when multiple questions are posted we will answer the first question when no other question…
Q: Suppose that $ 1,500 is placed into a bank account at the end of each month over the next 8 years.…
A: Annuity refers to the fixed periodic payments which are paid monthly, quarterly, semi-annually or…
Q: Suppose that you deposit $750 into a bank account today. If the bank pays 8 percent APR per year,…
A:
Q: A business man has an obligation to pay $ 8,000 four years from now, and another obligation to pay $…
A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…
Q: In order to have $373,010 in 29 years, how much needs to be deposited each month into a bank account…
A: Information Provided: Future value = $373,010 Years = 29 Interest rate = 1.1% compounded monthly…
Q: The owner of Oak Hill Squirrel Farm deposits $2,000 at the end of each quarter into an account…
A: Quarterly deposit (P) = $2,000 Interest rate = 1.5% Quarterly interest rate (i) = Interest rate/4 =…
Q: Billy Thornton borrowed $60,000 at a rate of 7.25%, simple interest, with interest paid at the end…
A: Introduction Simple interest: Simple interest is the fixed amount charged on loan taken by the…
Q: You have $2,000 invested in a bank account that pays a 4 percent nominal annual interest with daily…
A: Invested amount (P) = $ 2000 Annual interest rate = 4% Daily interest rate (r) = 4%/365 =…
Step by step
Solved in 2 steps
- 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.You put $250 in the bank for S years at 12%. 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 fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7% interest compounded annually? What amount must be deposited at the bank today to grow to $300 in 5 years, assuming 14% interest compounded semiannually?
- you deposit $9000 into a bank account that pays 3.15% annual interest, compound quarterly. How much interest does the account earn after 5 years?Your bank account pays a nominal interest rate of 8%, compounded quarterly. You deposit $500 in the account today, and deposit $1,000 in the account at the end of the first year. How much will you have in the account at the end of the first year?You plan to deposit $5, 706 into a savings account paying 8% interest compounded quarterly. How much will be in your account - assuming no withdrawals - after three years?
- CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next eight years. How much will accumulate by the end of the eighth and final payment if the account earns 8% interest?1. At the beginning of each quarter, P36,000 is deposited into savings account that pays 6% compounded semiannually. Find the balance in the account at the end of three years. 2. ABC bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at the end of 5 years if he deposits P3,000 every month? 3. What is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2 yea if money is worth 8% compounded semiannually?You deposit $2,500 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. Two years after yourdeposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate; this time the interest rate becomes 8% nominal interest compounded quarterly. Nine years after your deposit, the saving account changes its rate once more to 6% compounded annually. Solve, a. How much money should be in the savings account 15 years after the initial deposit, assuming no further changes in the account’s interest rate? b. What interest rate, compounded annually, is equivalent to the interest pattern of the saving account in Part (a) over the entire 15-year period?
- You deposit $3,500 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Six years after your deposit, the savings account again changes its interest rate; this time the interest rate becomes 8% nominal interest compounded quarterly. Nine years after your deposit, the saving account changes its rate once more to 5% compounded annually. a. How much money should be in the savings account 17 years after the initial deposit, assuming no further changes in the account's interest rate? b. What interest rate, compounded annually, is equivalent to the interest pattern of the saving account in Part (a) over the entire 17 year period? a. $ should be in the savings account 17 years after the initial deposit. (Round to the nearest dollar.) b. The interest rate equivalent to the interest pattern of the saving account in Part (a) over the…You deposit $2,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. A year after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate; this time the interest rate becomes 8% nominal interest compounded quarterly. Nine years after your deposit, the saving account changes its rate once more to 5% compounded annually. a. How much money should be in the savings account 17 years after the initial deposit, assuming no further changes in the account's interest rate? b. What interest rate, compounded annually, is equivalent to the interest pattern of the saving account in Part (a) over the entire 17 year period?