Your grandparents just gave you a gift of $3,000. You are investing this money for 10 years at 3 percent simple interest. How much money will you have at the end of the 6 years? MUST SHOW FULL WORK (NO EXCELL) a. $3,270 b. $3,900 c. $4,032 d. $3.090 e. $3,540

Your grandparents just gave you a gift of $3,000. You are investing this money for 10 years at 3 percent simple interest. How much money will you have at the end of the 6 years? MUST SHOW FULL WORK (NO EXCELL) a. $3,270 b. $3,900 c. $4,032 d. $3.090 e. $3,540

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter27: Time Value Of Money (compound)

Section: Chapter Questions

Problem 10E

See similar textbooks

Related questions

Q: Your sister just deposited $6,500 into an investment account. She believes that she will earn an…

A: The objective of the question is to find out how much more you need to deposit today in order to…

Q: Suppose you receive $500 in graduation money. You decide to put it into an account paying 5%. If you…

A: FV= [C*{(1+r)^n-1]/r] + [P*(1+r)^n] Where P= Initial deposit = $500 C= Periodic payments = $170 r=…

Q: Your parents wanted to establish a travel fund that will provide them an annual travel 1. allowance…

A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Your grandmother will be gifting you $150 at the end of each month for four years while you attend…

A: Monthly gift amount = $150Year = 4Discount rate = 3.7%To find: The worth of these payments on the…

Q: 6: You invest $10000 today for 9 years at 6% interest. What is the total amount of interest on…

A: Interest on investment refers to the return or profit earned from investing a certain amount of…

Q: you would like to have enough money saved to receive a $53,000 per year perpetuity after retirement.…

A: Perpetuity refers to something that lasts forever, without an end.It represents an infinite duration…

Q: Your father paid $10,000 (CF at t = o) for an investment that promises to pay $575 at the end of…

A: Expected Return is that percentage of earnings which is earned by the investor from the project. It…

Q: Sue's goal is to have $9000 in her savings account seven years from now. How much must she set aside…

A: PMT is the financial functions, which is used for computing the payment for the loan that is…

Q: If Maggie has $5,000 to invest and wants to have $10,000 at the end of 9 years, what interest rate…

A: Calculate interest rate:interest rate is calculated by using excel formula:

Q: Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in…

A: Interest per year can be calculated as: = Principal * Rate * Time

Q: Your sister just deposited $11,500 into an investment account. She believes that she will earn an…

A: The current worth that would be same as the amount saved by the sister in seven years at 10% can be…

Q: Your first child was just born and you want to set up an annuity due savings plan to finance her…

A: Future Value is the amount which is received by the investor at the end of some specified period of…

Q: Your father paid $10,000 (CF at t= 0) for an investment that promises to pay $750 at the end of each…

A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…

Q: (Related to The Business of Life: Saving for Your First House) (Future value) You are hoping to buy…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Jim Hunter has decided to retire to Florida in 10 years. What amount should Jim invest today so that…

A: The computation is as follows:

Q: You just inherited some money, and you decide to put $70,000 in an account that pays 3.25% interest,…

A: Given:P = $70,000r = 3.25% or 0.0325 in decimaln = 10 years

Q: You deposit $17,000 each year for 10 years at 7%. Then you earn 9% after that. If you leave the…

A: Future Value (FV) is a financial concept representing the projected value of an investment, series…

Q: How much money does Suzie need to have in her retirement savings account today if she wishes to…

A: Payment = p = $25,000Time = t = 3 YearsAverage Rate of Return = r = 13%

Q: You want to retire with $400 000 in the bank and you are able to earn 6% compounded quarterly for…

A: The amount to be invested today is calculated using present value equation below Present value =…

Q: Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest. You must…

A: The objective of the question is to find out the amount that can be withdrawn each year from a trust…

Q: On a whim you purchased a scratch-off lottery ticket at the gas station. It must have been your…

A: It is given that a lottery ticket was won for $15000,000 and was invested at a 6% interest rate for…

Q: In 25 years, you are hoping to have saved $120 000 towards your child’s university education. If you…

A: Yearly Investment ,PMT = $3000 Time Period = 25 years Future Goal = $120,000 Investing is a…

Q: Your brother plans to retire in 15 years. He currently has a deposit of $300,000, and think he will…

A: The required interest rate to reach the goal is calculated using Rate function in excel using the…

Q: You would like to give your son $70,000 towards his college education 12 years from now. How much…

A: Part II question appears to be incomplete.Request you to re-post the question.Part I:Variables in…

Q: How much would Dave have in his account at the end of 20 years if he deposits $2,000 into the…

A: future value with continous compounding: FV=PV×ertwhere,r=interest ratet=time

Q: Your grandmother just died and left you $112,500 in a trust fund that pays 6.3% interest. You must…

Question

$3,270

$3,900

$4,032

$3.090

$3,540

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

You would like to give your son $70,000 towards his college education 12 years from now. How much money must you set aside today for this purpose if you can earn 8% on your investments? B. $176.271.91 C. $27.797.96 A. $12.250.00 interest rate, you will triple your money in ately D. $3,688.65 E. $14.211.11
Your grandmother just died and left you $112,500 in a trust fund that pays 6.3% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account? O a. $32,689.86 O b. $7,087.50 O c. $39,812.95 O d. $30,752.46 Oe. $24,085.01
Your grandmother gave you money to start saving for retirement. You have $7.500 to begin investing in a GIC. Consider all factors in the decision. In a brief paragraph, justify your decision, including a description of all factors that would affect That dec
Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account? a. $3,087.50 b. $13,865.38 c. $10,120.08 d. $16,840.23 e. $13,019.14
Your father paid $10,000 (CF at t = o) for an investment that promises to pay $575 at the end of each of the next 5 years, then an additional lump sum payment of $13,500 at the end of the 5th year. What is the expected rate of return on this investment? O a. 5.75% Ob. 4.26% O c. 10.37% O d. 11.33% Oe. 11.95%
If Maggie has $5,000 to invest and wants to have $10,000 at the end of 9 years, what interest rate must she earn on her money, assuming annual compounding? Select one: a. 5% b. 6% с.790 d. 8% e. None of the above O
Your rich uncle has offered you two living trust payouts for the rest of yourlife. The positive cash flows of each trust are shown below. If your personalMARR is 10% per year, which trust should you select? Note: At 10% per year interest, infinity occurs when N = 80 years.
Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in interest from it over the next 12 years. How much money should Lily invest in this account to meet her goal? (Use I = Prt) a. $2,000.00 b. $1.670,40 $9.578.54 d. $6,030.27
Your sister just deposited $6,500 into an investment account. She believes that she will earn an annual return of 9 percent for the next 8 years. You believe that you will only be able to earn an annual return of 8.4 percent over the same period. How much more must you deposit today in order to have the same amount as your sister in 8 years? Multiple Choice $273.90 $864.11 $232.97 $313.03 $293.46
Your father paid $10,000 (CF at t= 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,000 at the end of the 5th year. What is the expected rate of return on this investment a. b. C. d. e. 6.77% 7.13% 7.50% 7.88% 8.27%
Joshua now has $500. How much would he have after 11 years if he leaves it invested at 4.5% with annual compounding? a. $815.76 b. $811.43 c. $522.50 d. $776.48 e. $829.72
Bha