Waiting for your solution general Accounting question You deposit $35,000 in an investment account that earns 10% interestcompounded quarterly. How much will you have in the account after 5years?A. $52,890.45B. $56,716.32C. $57,454.77D. $61,872.13

Step 1: Define Compound InterestCompound interest is the interest earned on both the initial…

Answered: You deposit $35,000 in an investment…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

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You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Suppose you invest $3,800 today in an account that earns a nominal annual rate (inom) of 12 percent, with interest compounded quarterly. How much money will you have after 12 years? a. $5,417.89 b. $15,702.56 c. $14,804.71 d. $875,484.95 e. $51,072.00
Your client deposits $5 million in a savings account that pays 5 percent per year compounded quarterly. What will be the value of this deposit after 2.5 years? A. $5.625 million. b. $5.649 million. c. $5.661 million
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If you deposit $150 dollars into your savings account at the beginning of each month, and that account earns 12% interest, how much would you have in your account after 24 years? $248,418.89 $250,903.07 $19,850.08 O $4,046.02
suppose that $47,700 is invested in certificate of deposit for 3 years at 6.2% annual interest to be compounded daily. how much interest will this investment earn?
Assuming that you can invest to earn a stated annual rate of return of 12%, but where interest is compounded semi-annually. If you make consecutive semi-annual deposits of $500 each, with the first deposit being made today, how much will be your balance at the end of fifth year? a. $6,590.40 b. $440.59 c. $1,762.34 d. $881.17
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You deposit $35,000 in an investment account that earns 10% interest compounded quarterly. How much will you have in the account after 5 years? A. $52,890.45 B. $56,716.32 C. $57,454.77 D. $61,872.13