Amount in account after 3 years. Non Annual Compounding: When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 36P

a.

Summary Introduction

To calculate: Amount in account after 3 years.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

b.

Summary Introduction

To calculate: Two amounts required to make a payment of $4,000 on two equal quarterly deposits in a bank that pays 6% interest rate.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

It is now January 1. You plan to make a total of 5 deposits of $500 each, one every 6 months, with the first payment being made today. The bank pays a nominal interest rate of 14% but uses semiannual compounding. You plan to leave the money in the bank for 10 years. Round your answers to the nearest cent. 1. How much will be in your account after 10 years? 2. You must make a payment of $1,280.02 in 10 years. To get the money for this payment, you will make five equal deposits, beginning today and for the following 4 quarters, in a bank that pays a nominal interest rate of 14% with quarterly compounding. How large must each of the five payments be?

Don't used hand raiting and don't used Ai solution

Don't used Ai solution and don't used hand raiting

Answer 2

Question

Chapter 5, Problem 36P

a.

Summary Introduction

To calculate: Amount in account after 3 years.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

b.

Summary Introduction

To calculate: Two amounts required to make a payment of $4,000 on two equal quarterly deposits in a bank that pays 6% interest rate.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 36P

a.

Summary Introduction

To calculate: Amount in account after 3 years.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

b.

Summary Introduction

To calculate: Two amounts required to make a payment of $4,000 on two equal quarterly deposits in a bank that pays 6% interest rate.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 36P

a.

Summary Introduction

To calculate: Amount in account after 3 years.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

b.

Summary Introduction

To calculate: Two amounts required to make a payment of $4,000 on two equal quarterly deposits in a bank that pays 6% interest rate.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 36P

a.

Summary Introduction

To calculate: Amount in account after 3 years.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

b.

Summary Introduction

To calculate: Two amounts required to make a payment of $4,000 on two equal quarterly deposits in a bank that pays 6% interest rate.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Answer 6

Chapter 5, Problem 36P

a.

Summary Introduction

To calculate: Amount in account after 3 years.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Answer 7

Chapter 5, Problem 36P

a.

Summary Introduction

To calculate: Amount in account after 3 years.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Answer 8

b.

Summary Introduction

To calculate: Two amounts required to make a payment of $4,000 on two equal quarterly deposits in a bank that pays 6% interest rate.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Answer 9

b.

Summary Introduction

To calculate: Two amounts required to make a payment of $4,000 on two equal quarterly deposits in a bank that pays 6% interest rate.

Non Annual Compounding:

When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 5 - Prob. 1Q Ch. 5 - Explain whether the following statement is true or...Ch. 5 - If a firms earnings per share grew from 1 to 2...Ch. 5 - Would you rather have a savings account that pays...Ch. 5 - Prob. 5Q Ch. 5 - Prob. 6Q Ch. 5 - Banks and other lenders are required to disclose a...Ch. 5 - Prob. 8Q Ch. 5 - Prob. 1P Ch. 5 - PRESENT VALUE What is the present value of a...

Amount in account after 3 years. Non Annual Compounding: When the cash flow compounding occurs more than one time in a year than interest rate is divided by number of time compounding occurs in a year. Number of year when multiplied by number of compounding in a year we get compounding period.

Solution Summary: The author explains that the future value of cash flow is 5,468.41.

Want to see the full answer?

Chapter 5 Solutions