General Accounting Question Solve You invest $2,500 today at an interestrate of 20% compounded annually.How much will you accumulate after35 years?

CONCEPT:Compound interest is when you earn interest not only on your initial investment (principal),…

Answered: You invest $2,500 today at an interest…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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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 want to accumulate $1 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 8% interest, compounded annually. You expect to receive annual raises of 3%, which will offset inflation, and you will let the amount you deposit each year also grow by 3% (i.e., your second deposit will be 3% greater than your first, the third will be 3% greater than the second, etc.). How much must your first deposit be if you are to meet your goal?
How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
Suppose you invest $3,500 today, compounded monthly, with an annual interest rate of 8.50%. What amount of interest will you earn in one year?
Suppose you invest $1,000 today, compounded quarterly, with the annual interest rate of 8.00%. What is your investment worth in one year?
You plan to invest $1,000 at the end of EVERY year for the next 25 years. You believe youcan earn 7% annual compounding interest. How much will your investment be worth in 25 years?
If you invest $10,000 at 8.125% interest compounded daily, how long will it take for you to accumulate $15,000? (Give the number of periods and the number of years, rounded to the nearest hundredth.) b) How long will it take for you to accumulate $100,000?
Suppose you inherit a perpetuity that pays $4,000 each year. Assuming the first payment will occur one year from now and the cost of capital is 10% APR with daily compounding, what is the value of this perpetuity today? Assume 365 days in a year.
If you deposit $4,600 today into an account earning an annual rate of return of 14 percent, what would your account be worth in 25 years?
You plan to invest $2,000 per year into a retirement account. If you earn a compound annual rate of return of 5%, how many years will it take you to reach a balance of $500,000?
You would like to have 950,000 when you retire in 30 years. How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly? How much should you deposit each quarter? How much total money will you put into the account? How much total interest will you earn?
Suppose an investment will pay $21,000 in 29 years from now. If you can earn 11.35% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?

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You invest $2,500 today at an interest rate of 20% compounded annually. How much will you accumulate after 35 years?