General accounting question You invest $2,500 in a retirement account earning 6%interest compounded quarterly. How much will you haveafter 3 years?A) $2,972B) $3,125C) $2,989D) $3,567

To calculate the amount in your retirement account after 3 years with 6% interest compounded…

Answered: You invest $2,500 in a retirement…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

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Similar questions

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 $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?
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?
Assume you deposit $5700 at the end of each year into an account paying 11.25 percent interest. A.) How much money will you have in the account in 19 years? B.) How much will you have if you make deposits for 38 years?
Suppose you want to have $ 367733 for retirement in 31 years. Your account earns 4.4 % interest monthly. How much interest will you earn?
You deposit $400 each month into a retirement account earning 6% interest compounded monthly. How much will you have accumulated by the time you retire in 28 years? Round your answer to the nearest cent.
You start investing $43,000 annually and the bank provides you 7.20% interest in your account compounded annually. At what age should you start saving in order to reach your retirement goal of $1,210,000 at age 69 ?
if i invest $8000 in a retirement account with 6% interest, and its compounded quarterly, how long will it take for me to have $15,000
You deposit $290 each quarter into an account earning 6.8% interest compounded quarterly. a) How much will you have in the account in 30 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $
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You invest $2,500 in a retirement account earning 6% interest compounded quarterly. How much will you have after 3 years? A) $2,972 B) $3,125 C) $2,989 D) $3,567