1. You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is thefuture value of your deposit?2. FNB pays 6% interest compounded semi-annually. SNB pays 6% compounded monthly.Which bank offers the higher effective annual rate?3. You deposit PHP1, 000 in your bank account. If the bank pays 4% simple interest, howmuch interest will you accumulate in your account after 10 years?.a. What if the bank pays compound interest?4. Mr. Sotto won PHP10 million in the lottery. He was very excited to collect his winningsand had several plans for his PHP10 million. He would buy his dream house, car, and alot more. However, he was very disappointed when the officers from PCSO said that hewill not get his PHP10 million pesos upfront. He, however, has the following options:Get 8.1 million upfrontReceive 1 million every year for 10 yearsReceive 1.8 million every year for 5 yearsa. The current government bonds have a yield of 5% per annum. Which is the bestoption?BPOCES OF

Future Value: The future value is the amount that will be received at the end of a certain period.…

Answered: You deposited PHP1, 500 in a bank with…

Business

Finance

You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: If you deposit OMR 12200 in your account in a bank. If your bank pays 8.15% interest, how much will…

A: The value of a current asset at a future date based on an expected rate of growth is known as future…

Q: An investor wants to get back his 10000$ savings as 18106$ in the future by depositing it in the…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You need to turn $11,827 dollars into $18,864 dollars in 7 years. Assuming you make no extra…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: What rate offered by bank?

A: To find the PV of future sum, formula used is: PV = FV/(1+r)^n

Q: Nawal wants to deposit OMR 3250 in a bank; she wants to know in how many years this amount will…

A: Amount to be doubled means invested amount becomes twice of what is invested , Therefore , Amount…

Q: If you deposited P1,000 a couple of years ago in a bank that pays the interest bimonthly. After…

A: The effective rate implies for percentage figure which shows proportion of increase that will occur…

Q: how much will you have when it matures?

A: A certificate of deposit (CD) is a financial product that banks and credit unions offer to customers…

Q: 1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years,…

A: Solution:- Given, A Bank Deposited Value = $5,000 At the end of 3 years = $5,310 Interest for 3…

Q: Robert deposit $5000 into an account paying simple interest at a rate of 2.5%. A. Give the future…

A: The formula to calcuate simple interest is P*r*t Where P is the amount deposited r is the interest…

Q: A person deposits 200.00 riyals at the end of each month for a year in a bank, and it has been found…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: 3. Jeff has one savings account with the interest rate of 3.3% in a bank. If he deposits 1200 pesos…

A: Interest is an additional amount which is earned on deposited amount over the period. It is income…

Q: Compute the annual interest, total interest, and amount to be received or paid at the end of the…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Suppose you deposit $1,098.00 into an account 5.00 years from today. Exactly 14.00 years from today…

A: Following formula is used to compute account's interest rate account's interest rate = -1where,n =…

Q: You deposit $100, $150, & $200 in a bank account at the end of years 1,2,& 3 and earn 7% interest.…

A: Solution:- Present value means value in today’s terms by discounting it back at the given interest…

Q: Lucinda placed $12,000 in a 16-month term deposit paying 5.05% simple interest. How much will the…

A: Deposit amount = $12000 Period = 16 Months Interest rate = 5.05%

Q: 2. You are running a bank. A customer agrees to pay you with annual interest rate of 10% for 5…

A: We need to use loan amortization formula to calculate amount of loan Loan amount(P)=PMT1-1(1+i)ni…

Q: Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until…

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: ____ value refers to the total value of the deposit after 7 years. Select one: a. principal b.…

A: The term Principal refers to amount deposited today. The term compound refers to ability of…

Q: Suppose I have a balance of $4500 on my Bank of America credit card. Assume the interest rate on my…

A: Payment is made monthly, hence it is a question of annuity. Annuity means number of payments which…

Q: Suppose I secure a simple interest note for $4500. The length of the note is 102 months and the…

A: Interest = Principal * rate * time Interest = $4500 * 6.20% * 102 /12 Interest = $2,371.50

Q: If you deposit OMR 24184 in your account in a bank. Suppose the bank pays 8% compound interest half…

A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.

Q: A sum of 2500 TL is deposited in a bank and cashed back at the end of 3 year as 5000 TL. Find the…

A: Deposited amount (PV)= 2500 TL Cashed amount (FV)= 5000 TL Time period= 3 years Monthly and annual…

Q: James deposited $500 in his bank at 4.5% for 90 days. Use the simple interest formula to calculate…

A: Introduction: In simple interest, interest is paid only on the initial investment amount i.e. no…

Q: If in your Allied Bank account you deposit Rs.15,000 at the end of each year at 14% interest rate…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: You deposit $2,000 in an account today earning 8% per year. Five years from today, you make another…

A: Using excel PV and FV function

Q: A man deposits Php 1500 in the bank now and plans to withdraw Php 1000 next year. What will be the…

A: Deposit in year-0 = Php 1500 Withdraw in year-1 = Php 1000 Future value period = 10 Years Annual…

Q: how much should you deposit in a bank paying 2% compounded quarterly to accumulate an amount of…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: LEASE HELP ASAP The client has made a deposit in the bank in the amount of 10,000$. The duration of…

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

Q: How much would your investment be worth if you deposited $5,555.55 into a bank that paid simple…

A: Total Interestn need to be computed for 10 years period by computing the annual interest on amount…

Q: Jamila wants to deposit OMR 5000 in a bank fixed deposit for 8 years. She has the following bank…

A: Investments are the crucial methods through which individuals and companies invest or park their…

Question

1. You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is the
future value of your deposit?
2. FNB pays 6% interest compounded semi-annually. SNB pays 6% compounded monthly.
Which bank offers the higher effective annual rate?
3. You deposit PHP1, 000 in your bank account. If the bank pays 4% simple interest, how
much interest will you accumulate in your account after 10 years?.
a. What if the bank pays compound interest?
4. Mr. Sotto won PHP10 million in the lottery. He was very excited to collect his winnings
and had several plans for his PHP10 million. He would buy his dream house, car, and a
lot more. However, he was very disappointed when the officers from PCSO said that he
will not get his PHP10 million pesos upfront. He, however, has the following options:
Get 8.1 million upfront
Receive 1 million every year for 10 years
Receive 1.8 million every year for 5 years
a. The current government bonds have a yield of 5% per annum. Which is the best
option?
BPOCES OF

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Money Management and Achieving Financial Goals

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

A person would want to have K143.33 in 4 years time by depositing a single cash of K100 in a bank that compound interest continuously. What interest rate does this bank give? What will be the interest on interest that he will receive on his investment?
Every year on 1st January between 2020 and 2049 inclusive (so 30 times), you deposit $1,000 into a bank account. Each year, the bank account returns a rate of interest equal to that year less 2000. (So in 2020, the account earns 20%, in 2021, 21% etc). How much will you have in the bank account on 31st December 2049, just after that year's interest has been paid? A $35,734,347.81 B $35,734,347.82 C $35,734,347.83 D $35,734,347.84
Q: If in your Allied Bank acqount you deposit Rs.15,000 at the end of each year at 14% interest rate than how much accumulate in your account after 9 years.
The Bank pays $1,200 in a bank deposit after a period of 12 years at an annual interest rate of 6.5% How much should you deposit in your bank account now Future Value ? Discount Rate/Period ? No. of Periods ? Present Value ?
You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded semiannually. What is the effective rate of return that you will earn from this investment?
1. Mr. Pat Met invested in a bank having an annual payment of Php 100,000 for three years at a 4% annual interest rate. a. How much is the future value? b. Find the total interest earned on the investment.
1. You deposited PHP5,500 in a bank with an interest rate of 6% for I year. What is the future value of your deposit?
what will be the value of the $333.976 deposit in 120 days if I calculate the annual interest rate at 5.61% using the French method?
If a nine month term deposit at a bank earn a simple interest rate of 9% per annum, how much should be deposited to earn Php225 of interest?
A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple discount of 6% payable at once. How much must be barrowed? What is the rate of interest?
A man wants to get from her bank account ¥26,265.58, 8 years from now. How much should he invest for three consecutive years (annually) starting this year if the interest rate is 0.243 (24.3%)?
If Xavier borrowed $3400 form a bank at simple interest rate of 4.5% for one year. How much interest will Xavier need to pay after one year

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS