You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent per month), while King Bank offers 15 percent but will only compound annually. How much will your investment be worth in 20 years at each bank? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Regency Bank King Bank

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A: Perodic Payment(PMT) is $6,000 Per Year Interest rate is 10.3% Time Period 25 years & 50 Years…

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…

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

Q: Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much…

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A: In simple interest, the rate of interest is applied on the principal amount only whereas in compound…

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Q: uppose an individual makes an initial investment of $1,200 in an account that earns 6%, compounded…

A: We will apply the concept of time value of money here. As per the concept of time value of money the…

Q: How much will your investment be worth in 17 years at each bank?

A: Time value of money (TVM) means that the amount received in the present will have more value than…

Q: The Continental Bank advertises capital savings at 7.9% compounded annually while TD Canada Trust…

A: Interest amount refers to the rate that is paid over the principal amount of savings by the bank or…

Q: If you deposit $5,000 in a bank account that pays 6% interest annually, how much will be in your…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: (Comprehensive problem) You would like to have $59,000 in 15 years. To accumulate this amount, you…

A: Annuity is the series of equal cash payments over the period.

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A: Using excel NPER function

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A: Solution- Given that P=$4900 r=11.3% n=15 years Future value of Annuity- =P * [ (1+r)^n -1] /r

Q: (Comprehensive problem) You would like to have $57,000 in 13 years. To accumulate this amount, you…

A: Here,ParticularsValuesFuture value (FV) $  57,000.00Number of years (NPER)13.00Interest rate…

Q: (Comprehensive problem) You would like to have $52,000 in 12 years. To accumulate this amount, you…

A: Future value = $52,000Period = 12 yearsInterest rate = 10% compounded annually

Q: First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City…

A: Simple interest is the additional amount that the bank pays for depositing a sum in the account. In…

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A: Given Information :Interest rate = 5.8% p.aDeposit amount = $ 5,500

Q: Do a. an account that pays 2.3% every 6 months for 3 years? the relevant calculations so you can…

A: EAR stands for Effective Annual Rate, which represents the total amount of interest that would be…

Q: Your broker is offering 1.7 percent compounded daily on its money market account. If you deposit $3,…

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

Q: ou can earn .38 percent per month at your bank. If you deposit $2,100, how long must you wait until…

A: Future value of money is the amount that is deposited and amount of interest accumulated over the…

Q: If you deposit $8,000 in a bank account that pays 4% interest annually, how much will be in your…

A: Deposit=$8000Interest rate=4%Number of years=5

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A: The number of months can be calculated with the help of future value function

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A: The amount in the account after n years is calculated using the future value formula. Future value =…

Q: 1.Assume that you deposit $946 into an account that pays 11 percent per annum. How much money will…

A: Time value of money refers to the concept that money available at the present time is worth more…

Q: Your bank pays 8.50 percent annual interest compounded semiannually on your savings account. You…

A: Future Value = Present Value * (1+rate)^ n Where, Present Value = $2,500 Rate = 8.5%/2 =4.25%…

Q: 1.How much must you deposit in an account today so that you have a balance of $21,829 at the end of…

A: The present value represents the current value of the expected cash flow streCam discounted over the…

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A: Periodic payment = $1,000 Interest rate per period, r = 6%/2 = 3% Number of deposits, n = 3 × 2 = 6…

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: Five banks offer nominal rates of 10% on deposits, but A pays interest annually, B pays…

A: As per Bartleby guidelines,If a question with multiple sub-parts are posted,  first 3 sub-parts will…

Q: Spartan Credit Bank is offering 6 percent compounded daily on its savings accounts. Assume that you…

A: Future Value (FV) is the value of an investment or cash flow at a specified future date, assuming a…

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Q: You can earn .53 percent per month at your bank. If you deposit $3,600, how long must you wait until…

A: Time value of money:The concept of the time value of money underscores the principle that a sum of…

Q: If you deposit $700 in a bank account that earns 5 percent per year, how much total interest will…

A: Interest Amount = Principal * ( 1 + r )n - Principal

Q: A local bank advertises the following deal: Pay us $100 at the end of each year for 10 years and…

A: A financial concept known as the time value of money acknowledges that money that is available now…

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A: The present value is the present worth of the amount that is paid or received in the future.

Q: You can earn .53 percent per month at your bank. If you deposit $3,600, how long must you wait until…

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

Q: 1. Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: Solve the following question with complete solution and include cash flow diagram: (DO NOT USE…

A: The future value of an annuity refers to the total value of a series of equal payments or cash flows…