Calculate the accumulated amount withdrawn by J, if the investment earns simple interest.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter A, Problem A.1BE

(a)

To determine

Calculate the accumulated amount withdrawn by J, if the investment earns simple interest.

(a)

Expert Solution

Answer to Problem A.1BE

The accumulated amount withdrawn by J is $9,600.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at simple interest:

Future value }= Invested amount + Interest amount=Present value + (Present value × Simple interest rate × Number of years)

Determine the accumulated amount withdrawn by J.

Future value }=Present value + (Present value × Simple interest rate × Number of years)=$6,000+($6,000 × 5% × 12 years)=$6,000+$3,600=$9,600

The justification for the above calculation is as follows:

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

Conclusion

Therefore, the accumulated amount withdrawn by J is $9,600.

(b)

To determine

Calculate the future value of a single amount, if the interest is compounded annually.

(b)

Expert Solution

Answer to Problem A.1BE

Therefore, the future value of an amount is $10.775.16.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at compounded interest:

Future value = Present value×(1+Interest rate)Time period

Or,

Futurevalue} = {Invested (present)value × Future value factor of $1 at interest rate for time periods}

Determine the accumulated amount withdrawn by J.

Future value=( Invested amount × Future value factor of $1 at 5% for 12 time periods )=$6,000×1.79586=$10,775.16

Note: Refer to Table 1 of Appendix A for future value factor.

J invested $6,000 at 5% interest rate for 12 years. If the interest amount is compounded annually, the future value factor of 5% for 12 time periods would be 1.79586. Therefore, the amount withdrawn by J is $10.775.16.

Conclusion

Therefore, the future value of an amount is $10.775.16.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is siftons assets turnover for 2015?

Find Cost account answer

Overhead variance?

Answer 2

Question

Chapter A, Problem A.1BE

(a)

To determine

Calculate the accumulated amount withdrawn by J, if the investment earns simple interest.

(a)

Expert Solution

Answer to Problem A.1BE

The accumulated amount withdrawn by J is $9,600.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at simple interest:

Future value }= Invested amount + Interest amount=Present value + (Present value × Simple interest rate × Number of years)

Determine the accumulated amount withdrawn by J.

Future value }=Present value + (Present value × Simple interest rate × Number of years)=$6,000+($6,000 × 5% × 12 years)=$6,000+$3,600=$9,600

The justification for the above calculation is as follows:

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

Conclusion

Therefore, the accumulated amount withdrawn by J is $9,600.

(b)

To determine

Calculate the future value of a single amount, if the interest is compounded annually.

(b)

Expert Solution

Answer to Problem A.1BE

Therefore, the future value of an amount is $10.775.16.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at compounded interest:

Future value = Present value×(1+Interest rate)Time period

Or,

Futurevalue} = {Invested (present)value × Future value factor of $1 at interest rate for time periods}

Determine the accumulated amount withdrawn by J.

Future value=( Invested amount × Future value factor of $1 at 5% for 12 time periods )=$6,000×1.79586=$10,775.16

Note: Refer to Table 1 of Appendix A for future value factor.

J invested $6,000 at 5% interest rate for 12 years. If the interest amount is compounded annually, the future value factor of 5% for 12 time periods would be 1.79586. Therefore, the amount withdrawn by J is $10.775.16.

Conclusion

Therefore, the future value of an amount is $10.775.16.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter A, Problem A.1BE

(a)

To determine

Calculate the accumulated amount withdrawn by J, if the investment earns simple interest.

(a)

Expert Solution

Answer to Problem A.1BE

The accumulated amount withdrawn by J is $9,600.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at simple interest:

Future value }= Invested amount + Interest amount=Present value + (Present value × Simple interest rate × Number of years)

Determine the accumulated amount withdrawn by J.

Future value }=Present value + (Present value × Simple interest rate × Number of years)=$6,000+($6,000 × 5% × 12 years)=$6,000+$3,600=$9,600

The justification for the above calculation is as follows:

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

Conclusion

Therefore, the accumulated amount withdrawn by J is $9,600.

(b)

To determine

Calculate the future value of a single amount, if the interest is compounded annually.

(b)

Expert Solution

Answer to Problem A.1BE

Therefore, the future value of an amount is $10.775.16.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at compounded interest:

Future value = Present value×(1+Interest rate)Time period

Or,

Futurevalue} = {Invested (present)value × Future value factor of $1 at interest rate for time periods}

Determine the accumulated amount withdrawn by J.

Future value=( Invested amount × Future value factor of $1 at 5% for 12 time periods )=$6,000×1.79586=$10,775.16

Note: Refer to Table 1 of Appendix A for future value factor.

J invested $6,000 at 5% interest rate for 12 years. If the interest amount is compounded annually, the future value factor of 5% for 12 time periods would be 1.79586. Therefore, the amount withdrawn by J is $10.775.16.

Conclusion

Therefore, the future value of an amount is $10.775.16.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter A, Problem A.1BE

(a)

To determine

Calculate the accumulated amount withdrawn by J, if the investment earns simple interest.

(a)

Expert Solution

Answer to Problem A.1BE

The accumulated amount withdrawn by J is $9,600.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at simple interest:

Future value }= Invested amount + Interest amount=Present value + (Present value × Simple interest rate × Number of years)

Determine the accumulated amount withdrawn by J.

Future value }=Present value + (Present value × Simple interest rate × Number of years)=$6,000+($6,000 × 5% × 12 years)=$6,000+$3,600=$9,600

The justification for the above calculation is as follows:

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

Conclusion

Therefore, the accumulated amount withdrawn by J is $9,600.

(b)

To determine

Calculate the future value of a single amount, if the interest is compounded annually.

(b)

Expert Solution

Answer to Problem A.1BE

Therefore, the future value of an amount is $10.775.16.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at compounded interest:

Future value = Present value×(1+Interest rate)Time period

Or,

Futurevalue} = {Invested (present)value × Future value factor of $1 at interest rate for time periods}

Determine the accumulated amount withdrawn by J.

Future value=( Invested amount × Future value factor of $1 at 5% for 12 time periods )=$6,000×1.79586=$10,775.16

Note: Refer to Table 1 of Appendix A for future value factor.

J invested $6,000 at 5% interest rate for 12 years. If the interest amount is compounded annually, the future value factor of 5% for 12 time periods would be 1.79586. Therefore, the amount withdrawn by J is $10.775.16.

Conclusion

Therefore, the future value of an amount is $10.775.16.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter A, Problem A.1BE

(a)

To determine

Calculate the accumulated amount withdrawn by J, if the investment earns simple interest.

(a)

Expert Solution

Answer to Problem A.1BE

The accumulated amount withdrawn by J is $9,600.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at simple interest:

Future value }= Invested amount + Interest amount=Present value + (Present value × Simple interest rate × Number of years)

Determine the accumulated amount withdrawn by J.

Future value }=Present value + (Present value × Simple interest rate × Number of years)=$6,000+($6,000 × 5% × 12 years)=$6,000+$3,600=$9,600

The justification for the above calculation is as follows:

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

Conclusion

Therefore, the accumulated amount withdrawn by J is $9,600.

(b)

To determine

Calculate the future value of a single amount, if the interest is compounded annually.

(b)

Expert Solution

Answer to Problem A.1BE

Therefore, the future value of an amount is $10.775.16.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at compounded interest:

Future value = Present value×(1+Interest rate)Time period

Or,

Futurevalue} = {Invested (present)value × Future value factor of $1 at interest rate for time periods}

Determine the accumulated amount withdrawn by J.

Future value=( Invested amount × Future value factor of $1 at 5% for 12 time periods )=$6,000×1.79586=$10,775.16

Note: Refer to Table 1 of Appendix A for future value factor.

J invested $6,000 at 5% interest rate for 12 years. If the interest amount is compounded annually, the future value factor of 5% for 12 time periods would be 1.79586. Therefore, the amount withdrawn by J is $10.775.16.

Conclusion

Therefore, the future value of an amount is $10.775.16.

Answer 6

Chapter A, Problem A.1BE

(a)

To determine

Calculate the accumulated amount withdrawn by J, if the investment earns simple interest.

(a)

Expert Solution

Answer to Problem A.1BE

The accumulated amount withdrawn by J is $9,600.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at simple interest:

Future value }= Invested amount + Interest amount=Present value + (Present value × Simple interest rate × Number of years)

Determine the accumulated amount withdrawn by J.

Future value }=Present value + (Present value × Simple interest rate × Number of years)=$6,000+($6,000 × 5% × 12 years)=$6,000+$3,600=$9,600

The justification for the above calculation is as follows:

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

Conclusion

Therefore, the accumulated amount withdrawn by J is $9,600.

Answer 7

Chapter A, Problem A.1BE

(a)

To determine

Calculate the accumulated amount withdrawn by J, if the investment earns simple interest.

Answer 8

(a)

Expert Solution

Answer to Problem A.1BE

The accumulated amount withdrawn by J is $9,600.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at simple interest:

Future value }= Invested amount + Interest amount=Present value + (Present value × Simple interest rate × Number of years)

Determine the accumulated amount withdrawn by J.

Future value }=Present value + (Present value × Simple interest rate × Number of years)=$6,000+($6,000 × 5% × 12 years)=$6,000+$3,600=$9,600

The justification for the above calculation is as follows:

J invested $6,000 at 5% interest rate for 12 years. He withdrew the accumulated amount of money after 12 years. In that, he earned the interest amount of $3,600 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $9,600.

Answer 13

Conclusion

Therefore, the accumulated amount withdrawn by J is $9,600.

Answer 14

(b)

To determine

Calculate the future value of a single amount, if the interest is compounded annually.

(b)

Expert Solution

Answer to Problem A.1BE

Therefore, the future value of an amount is $10.775.16.

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at compounded interest:

Future value = Present value×(1+Interest rate)Time period

Or,

Futurevalue} = {Invested (present)value × Future value factor of $1 at interest rate for time periods}

Determine the accumulated amount withdrawn by J.

Future value=( Invested amount × Future value factor of $1 at 5% for 12 time periods )=$6,000×1.79586=$10,775.16

Note: Refer to Table 1 of Appendix A for future value factor.

J invested $6,000 at 5% interest rate for 12 years. If the interest amount is compounded annually, the future value factor of 5% for 12 time periods would be 1.79586. Therefore, the amount withdrawn by J is $10.775.16.

Conclusion

Therefore, the future value of an amount is $10.775.16.

Answer 15

(b)

To determine

Calculate the future value of a single amount, if the interest is compounded annually.

Answer 16

(b)

Expert Solution

Answer to Problem A.1BE

Therefore, the future value of an amount is $10.775.16.

Answer 17

(b)

Expert Solution

Answer 18

(b)

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

Future value: This is the amount of present value accumulated or compounded at a rate of interest till a particular future date.

Formula to compute future value at compounded interest:

Future value = Present value×(1+Interest rate)Time period

Or,

Futurevalue} = {Invested (present)value × Future value factor of $1 at interest rate for time periods}

Determine the accumulated amount withdrawn by J.

Future value=( Invested amount × Future value factor of $1 at 5% for 12 time periods )=$6,000×1.79586=$10,775.16

Note: Refer to Table 1 of Appendix A for future value factor.

J invested $6,000 at 5% interest rate for 12 years. If the interest amount is compounded annually, the future value factor of 5% for 12 time periods would be 1.79586. Therefore, the amount withdrawn by J is $10.775.16.