Answered: what is the effective quarterly…

Business

Accounting

what is the effective quarterly profitability of this Savings Account?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: In how many years will it take $17054 accumulate to $32133 when you deposited in a savings account…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: a. Calculate the size of the month-end deposits. $542.77 $518.51 $446.40 $496.19…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Question 3: Suppose you make $100 quarterly deposits to your saving account which earns an interest…

A: Quarterly deposit (q) = $100 Number of deposits (n) = 12 (i.e. 3 years * 4) Interest rate = 0.15…

Q: What would be the annual percentage yield for a savings account that earned $60.00 in interest on…

A: Annual Precentage Yield = (Annual interest / Principal amount ) x 100Note : 365 days = 1 year

Q: You wish to accumulate $60,000. You make 14 quarterly deposits into a savings account with an…

A: Amount required (F) = $60,000Number of deposits (n) = 14Quarterly interest rate (r) = 0.12Amount of…

Q: You put $9,000 in an account earning 3%. After 2 years, you make another deposit into the same…

A: Deposit now (P1) = $ 9000 Annual interest rate (r) = 3% Deposit after 2 years (P2) = X Balance after…

Q: What was the annual rate of simple interest offered on a savings of $7106 if the amount of interest…

A: What was the annual rate of simple interest:- Given information:- Savings(P)…

Q: Suppose a bank pays you 2% annual interest compounded quarterly. You deposited $2,350. How much will…

A: Computation:

Q: H5. Seamus has made deposits of $76.00 into his savings account at the end of every month for 15…

A: Present value is an estimate of the present value of future cash values that may be received at a…

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: establish a "rainy day" cash reserve account, a certain company deposits $11,000 of its profit at…

A: Quarterly deposit are of $11,000 Interest rate is 1.85% Compounded quarterly To Find: Value of…

Q: The amount that accumulates in 3 years if $ 2,500 is deposited at the beginning of each month in a…

A: Monthly payment = $2,500 Interest rate = 6.3% Time period = 3 Years

Q: $7000 are invested in a bank account at an interest rate of 6 percent per year. Find the amount in…

A: Here,

Q: Claudine Corporation will deposit $4,000 into a money market account at the end of each year for the…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: To establish a "rainy day" cash reserve account, a certain company deposits $11,000 of its profit at…

A: The future value of an annuity is the total value of all periodic payments made into the annuity,…

Q: Your goal is to accumulate $60,000 in seven years' time. What monthly deposit must you make into a…

A: Interest rate per month = 12%/12 = 1% per month Time period = 7 years * 12 = 84

Q: How many biweekly deposits of $ 1602.77. each must be done to accumulate a total of $ 111,825.31, if…

A: First we need to find the effective biweekly rate Rate per year is 12% so biweekly rate = 12%/26 =…

Q: (a) Bill made deposits of $200 at the beginning of each month into a savings account for 12 years…

A: In compound interest, the interest earned is reinvested because of which we earn even more interest…

Q: Suppose that $290,000.00 is owed on a house. The monthly payment for principal and interest at 8.0%…

A: The amount paid by the borrower on the amount owed is regarded as interest rate.

Q: Q1) A man deposited $10,000 in a bank saving account that pays X % / year compounded monthly. He…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 02: A $150000 real estate loan at 9% compounded monthly is repaid by monthly payments over 20 years.…

A: Amortization schedule refers to the statement showing the amount of payment made on each period…

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: You invest $8,500 in a savings account that pays interest of 4.8% compounded monthly. To the nearest…

A: The future value function is applied when the investor wants to know how much he/she will get after…

Q: 1. If $100 is deposited today in an account paying 9 percent compound annual interest, how much will…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Calculating deposit needed You put $7,000 in an account earning 7%. After 2 years, you make another…

A: The objective of the question is to find out the amount of the deposit made at the end of year 2.…

Q: You have been making quarterly contributions to your savings account for the last your contributions…

Q: JP just made a deposit of $4,321 is made today in an account earning 5.3% APR compounded annually.…

A: Data given: P=Deposit amount = $4,321 r=Rate = 5.3% APR compounded annually n= 15 years Required:…

Q: 25. Jamal Albright deposited $1,000 in a savings account that earms 5% compounded quarterly. He made…

A: Calculation of amount in the account after 2nd quarter are as follows.

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: 1. If $100 is deposited today in an account paying 9 percent compound annual interest, how much will…

A: The first question is asking for the future value of a single sum. The formula for future value is…

Q: Calculating deposit needed You put $7,000 in an account earning 7%. After 2 years, you make another…

A: The objective of this question is to find out the amount of the deposit made at the end of year 2.…

Q: Ten Thousand dollars is deposited into a savings account at 1.8% interest compounded monthly. How…

A: Using TVM Solver: (i) 10,000 +/- PV 1.8 i/y 10,665.74 FV CPT N = 3.61 It takes 3.61 months for…

Q: 4. An account earns 10% interest annually. $2,000 is deposited into that account today, at the end…

A: Future value is the future value of cash flow generated for the time period. This is can be…

Q: A $35,000 bank loan is to be repaid in equal yearly payment over 15 years at an effective annual…

A: The amortization refers to the systematic, equal and regular repayment of loan amount for the period…

Q: A customer has a balance of $4,000 to be invested in a savings account with 5% interest per year.…

A: Time value of money is one of useful concept of finance. Under this, present value and future value…

Q: Suppose you deposit $2899 into an account today In six years the account is worth $3,754 the account…

A: The formula of discount rate has been derived from the formula of future value. The formula is:

Q: y. In the second account, interest is compounded continuously. How much more is in the second…

Q: You deposit $1,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7%…

A: Saving Account is a deposit facility offered by commercial banks to their customers which gives them…

Q: A depositor opens the account? new savings account with $2000 at 2% compounded semiannually. At the…

A: Future value refers to the value of future cash flow at a future date. It can be determined by…

Question

34- A citizen made four deposits of R$5000 in a Savings Account at the end of each calendar quarter. The accumulated balance, immediately after the last quarter's deposit, was R$22,500.00. Using the HP 12-C machine, what is the effective quarterly profitability of this Savings Account?

Expert Solution

Step 1

As $5000 deposit was made at the end of every quarter and accumlated balance at the end of the year is $22,500, the accumlated profit at the end of last quarter is $2,500

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What amount must be invested now in savings account earning 9% compounded quarterly to accumulate a total of 21, 000 after 4 3/4 years in the nearest centavo?
If you deposit RM3,305 in an account earning 12%, how much would you have in the account after 15 years? Select one: a. RM18,090 b. RM23,456 c. RM12,879 d. RM17,869
How much interest will an account earn if you deposited $665 at the end of every six months for 8 years and the account earned 4.00% compounded semi-annually? Round to the nearest cent
3. Suppose that $8000.00 was invested in a savings account that paid 2.5% interest compounded quarterly. How much interest would be earned after 3 years? Be sure to show all of your work.
= A bank features a savings account that has an annual percentage rate of r interest compounded quarterly. Tatiana deposits $9,000 into the account. The account balance can be modeled by the exponential formula A(t) = a (1 + 7-)kt, where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = 5.6% with k = (B) How much money will Tatiana have in the account in 7 years? Answer = $ 7. Round answer to the nearest penny. APY = = %. Round answer to 3 decimal places. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year).
1. a. In a savings account 3% annual interest rate compounded monthy, P 1,000 is deposited at the end of each month. What is the value of the account at the end of 18 months? b. What income will be paid at the end of every month for 10 years if the present value is P360,000 and the interest is paid 6% monthly? c. How much money is accumulated if P 5,800 is paid at the end of every month for 4 years at 5% compounded quarterly?
You put $2,000 in an account today. After 35 years, how much is in the account assuming no other deposits or withdrawals? Assume a 6% APR and quarterly compounding. $70,000.00 $15,372.17 $16,079.62 $16,247.10
You invest $6,600 into a savings account at Mountain America Credit Union which pays 1.8% annual interest compounded quarterly. How much interest will you earn after 3 years? $89.50 $365.35 $6,689.50 $6,965.35
Nikul
51. A bank pays 6% interest per year, compounded quarterly. To what amount will a $5000 deposit grow if left in that bank for 10 years?
3. You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded 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. Year Year Beginning Balance Interest Year End Balance 1 $250.00 ? ? 2 ? ? ? 3 ? ? ? 4 ? ? ? 5 ? ? ? PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the future value of $1 table in the Appendix B PV FV Tables Appendix B PV FV Tablesand verify that your answer above is correct. Present Value (PV) PV FV Factor Future Value (FV) ? ? ? PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).