You are considering making a one-time deposit of $7,971 today, in a bank that offers an interest rate of 10% APR. If you leave your money invested for 8 years, how much money will you have at the end of this period? Consider monthly compounding. Enter your answer in terms of dollars and cents, rounded to 2 decimals, and without the dollar sign. That means, for example, that if your answer is $127.5678, you must enter 127.57

Q: You need $82,000 in 12 years. If you can earn .49 percent per month, how much will you have to…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Suppose you have $60,000 in a savings account earning 2%. You would like to make equal quarterly…

A: The time value of money is a concept in finance that evaluates the worth of the securities that cash…

Q: Assume you deposit $4,200 at the end of each year into an account paying 10 percent interest. a. How…

A: The fixed periodic regular payments/deposits made at each periodic interval are recognized as…

Q: You have $164,000 in an account today paying 2.8% interest. What are the monthly withdrawals you can…

A: The annuity refers to the series of payments made periodically in exchange for a lump sum payment.…

Q: Suppose you decide to deposit $24,000 in a savings account that pays a nominal rate of 12%, but…

A: The objective of this question is to calculate the future value of a deposit in a savings account…

Q: How much must you deposit into an account today so that you can have $25,000 in twelve years? Assume…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: 2. Suppose you put $100,000 in a certificate of deposit with an annual interest rate of 6 percent…

A: 2 (A) $126,247.7 (B) $1,27,048.9 (C) $126,898.6

Q: Suppose you start saving today for a $50,000 down payment that you plan to make on a house in 5…

A: Down payment = $50,000Interest rate = 6% (Daily compounding)Number of years = 5 years

Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…

A: Here, Deposit Amount  today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…

Q: How much would you need to deposit in an account now in order to have $2000 in the account in 10…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: You are planning to make monthly deposits of $370 into a retirement account that pays 9 percent…

A: Compound = monthly = 12Monthly Deposit = d = $370Interest Rate = r = 9 / 12 = 0.75%Time = t = 35 *…

Q: When you buy a certificate of deposit (CD), you are investing your money in an account that earns…

A: The formula used to compute final worth of CD as follows: A=P1+rnnt

Q: You want to be able to withdraw $8500 from an account at the end of each 6-month period (that is,…

A: Given that;Periodic withdrawal amount is $8500Interest rate is 2.9% per year

Q: Suppose you plan to start a saving account. You plan to deposit $98 each month in to a money market…

A: Compound = Monthly = 12Payment = p = $98Interest Rate = r = 6 / 12 = 0.5%Future Value = fv = $2000

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: Option 1: Deposit $ 500 now Future Value = Present Value*(1+ Interest rate)n Solved using Financial…

Q: Your bank account pays an interest rate of 6 percent, but this interest is compounded daily (use…

A: Interest rate on account = 6% (compounded daily) Amount A = P(1 + r/n)nt Where A = amount P =…

Q: you want to withdraw $100 from an account in year one. Also, you want to withdraw $200, $250 and $70…

A: Present value is the equivalent value today of the future money based on time value of money and…

Q: You want to withdraw $ 54,777 from your account at the end of one year and $ 10,521 at the end of…

A: As per the given information:Withdrawals at the end of the one year = $54,777Withdrawals at the end…

Q: The stated interest rate on your account is 8%, interest compounded monthly. If you deposit $50 each…

A: Future Value Annuity is the technique of determining the furure value of a series of regular…

Q: You plan on depositing $370 every month for the next 11 years in an account that pays a 0.8%…

A:

Q: Suppose you walk into a bank and want to make a 10-year deposit. Bank manager tells you that the…

A: Annual deposits = $10,000Period = 10 yearsInterest rate = 5%

Q: You put $6,150 in the bank for 15 years at 5%. Using the Future Value of 1 Table, what factor would…

A: Future Value is known as Terminal Value. The accrued amount of FVn  on principal amount after n…

Q: Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose…

A: Here Investor has $8,675,309 to deposit for 1 year @ 12% in two options: Compounded annually…

Q: You are planning to make monthly deposits of $300 into a retirement account that pays 8 percent…

A: Future value is the amount of money worth at a future date. This can be calculated based on the time…

Q: Suppose you start saving today for a $30,000 down payment that you plan to make on a house in 7…

A: Down payment = $30,000Number of years = 7APR = 8%To find: Amount of deposit made in the account…

Q: If you want to have $22,327 in fifteen years, how much do you need to deposit in a bank account…

A: The deposit required today is calculated as the present value.

Q: You wish to make 4 equal annual deposits into a savings account such that at the time of your last…

A:

Q: You deposit $ 70,565 in your account today. You make another deposit at t = 1 of $ 51,167 . How much…

A: Time value of money is one of important concept being used in finance. As per this concept, a dollar…

Q: You want to be able to withdraw $5000 from an account at the end of each year for the next 12 years.…

A: Information Provided: Payment = $5000 Term = 12 years Interest rate = 5.5% compounded annually

Q: How much would be in your savings account in 9 years after depositing $190 today if the bank pays 9…

A: Deposit amount (P) = $190 Interest rate (r) = 9% Period (n) = 9 Years

Q: You deposit $2000 in an account that pays 7% interest compounded semiannually. After 2 years, the…

A: Initial deposit (P) = $2000 Semiannual interest rate for first 2 years (r1) = 0.035 (i.e. 0.07 / 2)…

Q: Your bank offers you a savings plan with an APR of 2.7% compounded quarterly. You plan to save…

A: The future value refers to the estimated value of an investment or asset at a specific point in the…

Q: You are planning to make monthly deposits of $340 into a retirement account that pays 9 percent…

A: Compound = Monthly = 12Payment = p = $340Interest Rate = r = 9 / 12 = 0.75Time = t = 35 * 12 = 420