You deposit $500 in an account earning 7% compound interest for 3 years. Find the future value and the interest earned for each of the following compounding frequencies. Use the Bankers' Rule for daily compounding. Frequency Future Value Interest Earned Annually: Semiannually: Quarterly Monthly Daily:

Q: e future value and the interest earned

A: Future value refers to the amount of the current asset at some future date based on the assumption…

Q: Find the interest rate for a $8500 deposit accumulating to $11,612, compounded annually for 6 years.…

A: A = the final amount (in this case, $11,612) P = the principal (initial deposit) (in this case,…

Q: Deposits are made at the end of years 1 through 7 into an account paying 6% per year interest. The…

A: Future value  is the worth of any asset or any sum of money at a future date when such asset or…

Q: An investor deposits $500 into each of three accounts. The first account earns simple interest at an…

A: The accumulated amount of annuity can be found by using the formula function for future value in the…

Q: A life insurance company offers loans to its policyholders against the cash value of their policies…

A: Given: Nominal annual interest rate = 6% (0.06) Compounding frequency = MonthlyTo calculate the…

Q: You deposit 2,000 in an account that pays 7% interest compounded semiannually.after two years the…

A: The concept of time value of money will be used here. Money deposited today gets computed and hence…

Q: Quarterly compounding implies that interest is compounded _  times per year.   You have deposited…

A: Compound = Semiannually = 2Present Value = pv = $96,780Interest rate = r = 8 / 2 = 4%Time = t = 8 *…

Q: Suppose you make quarterly deposits of $1,500.00 into an account that pays an interest at a rate of…

A: Answer: Calculation of the balance in the account at the end of year 2: Formula, we will use here,…

Q: A person deposits $1,000 for 5 years in an account that pays 7.2% per year compounded quarterly.…

A: Future value refers to the future date value when all cash flows are compounded at the given…

Q: You deposit $5100 in an account earning 4% compound interest for 3 years. Find the future value and…

A:

Q: You decide to deposit $103 monthly in a 2.98% annual interest bearing account over the next 8 years.…

A: Gross amount placed in the account is simply the sum of all the payments made in the account.

Q: ocasionally a savings account may actually pay interest compounded continuously. For each deposit,…

A: A method of calculating interest or investment growth known as continuous compounding involves…

Q: A monthly deposit of $300 is put into an account earning 5% interest compounded monthly. Round to…

A: Solution:- When an equal amount is depsited each period at end of period, it is called ordinary…

Q: You just obtained a loan of $13,384 with monthly payments for four years at 8.4 percent interest,…

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

Q: Determine the amount of money in a savings account at the end of 5 years, given an initial deposit…

A: Compounding: It is the practice by which the interest is credited both to an existing principal…

Q: A deposit is made every half-year into a savings account paying 3% interest compounded semiannually.…

A: Annual interest rate (r): 3%, or 0.03 as a decimal.Compounding periods per year (n): 2 (semiannual…

Q: Suppose you invest $1,000.00 in an account with an annual interest rate of 6% compounded monthly…

A: To complete this table we have add simple interest on ending balance and then add deposit balance to…

Q: If, starting one year from today, 12 equal annual deposits of $2,500 are made into an account…

A: Annual deposit (P) = $ 2500 Annual interest rate (R) = 0% Number of annual deposit (N) = 12

Q: A bank pays 6% interest, compounded semiannuall formula to find how much should be deposited (in $…

A: Given, Interest rate = 6% or 0.06 Annual payment (A) = $700 Number of years = 16 years

Q: You deposit $1,000 in the bank at an annual interest rate of 8%. Interest is compounded once per…

A: Present Value, PV = $1,000 Interest rate per period, r = 8% Number of compounding periods, n = 1 The…

Q: If you deposit $368.00 into an account paying 15.46% annual interest compounded quarterly, how many…

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

Q: Ross Land has a loan of $8,500 compounded quarterly for four years at 4%. What is the effective…

A: Effective rate of Interest-The effective rate means the actual rate of interest which is accrued on…

Q: With additional deposits of $800 continually made at the end of the year. If B, is the balance in…

A: Future value of the money is the amount of deposit done and the amount of interest accumulated over…