Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount: Future value of an amount = Present value × ( 1+ Interest rate ) Number of periods To determine: the amount withdrawn by J assuming investment earning simple interest.

Question

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Answer 1

Question

Chapter AD, Problem AD.1BE

(a)

To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

To determine: the amount withdrawn by J assuming investment earning simple interest.

(a)

Expert Solution

Answer to Problem AD.1BE

Calculate the amount of simple interest as follows:

Simple interest =( Principal amount×Interest rate× Number of periods)=($8,000×5%×12 years)=$4,800

Calculate the accumulated amount as follows:

Accumulated amount = (Invested amount + Interest amount)=($8,000+$4,800)=$12,800

Explanation of Solution

J invested $8,000 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 $4,800 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $12,800.

Conclusion

Therefore, the accumulated amount withdrawn by J (if interest earns simple interest) is $12,800.

(b)

To determine

To Calculate: The future value of a single amount (if the interest compounded annually).

(b)

Expert Solution

Answer to Problem AD.1BE

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$8,000×1.79586=$14,366.88

Explanation of Solution

J invested $8,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $14,366.88.

Conclusion

Therefore, the accumulated amount withdrawn by J (if the interest compounded annually)is $14,366.88.

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Answer 2

Question

Chapter AD, Problem AD.1BE

(a)

To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

To determine: the amount withdrawn by J assuming investment earning simple interest.

(a)

Expert Solution

Answer to Problem AD.1BE

Calculate the amount of simple interest as follows:

Simple interest =( Principal amount×Interest rate× Number of periods)=($8,000×5%×12 years)=$4,800

Calculate the accumulated amount as follows:

Accumulated amount = (Invested amount + Interest amount)=($8,000+$4,800)=$12,800

Explanation of Solution

J invested $8,000 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 $4,800 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $12,800.

Conclusion

Therefore, the accumulated amount withdrawn by J (if interest earns simple interest) is $12,800.

(b)

To determine

To Calculate: The future value of a single amount (if the interest compounded annually).

(b)

Expert Solution

Answer to Problem AD.1BE

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$8,000×1.79586=$14,366.88

Explanation of Solution

J invested $8,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $14,366.88.

Conclusion

Therefore, the accumulated amount withdrawn by J (if the interest compounded annually)is $14,366.88.

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Answer 3

Question

Chapter AD, Problem AD.1BE

(a)

To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

To determine: the amount withdrawn by J assuming investment earning simple interest.

(a)

Expert Solution

Answer to Problem AD.1BE

Calculate the amount of simple interest as follows:

Simple interest =( Principal amount×Interest rate× Number of periods)=($8,000×5%×12 years)=$4,800

Calculate the accumulated amount as follows:

Accumulated amount = (Invested amount + Interest amount)=($8,000+$4,800)=$12,800

Explanation of Solution

J invested $8,000 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 $4,800 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $12,800.

Conclusion

Therefore, the accumulated amount withdrawn by J (if interest earns simple interest) is $12,800.

(b)

To determine

To Calculate: The future value of a single amount (if the interest compounded annually).

(b)

Expert Solution

Answer to Problem AD.1BE

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$8,000×1.79586=$14,366.88

Explanation of Solution

J invested $8,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $14,366.88.

Conclusion

Therefore, the accumulated amount withdrawn by J (if the interest compounded annually)is $14,366.88.

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Answer 4

Question

Chapter AD, Problem AD.1BE

(a)

To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

To determine: the amount withdrawn by J assuming investment earning simple interest.

(a)

Expert Solution

Answer to Problem AD.1BE

Calculate the amount of simple interest as follows:

Simple interest =( Principal amount×Interest rate× Number of periods)=($8,000×5%×12 years)=$4,800

Calculate the accumulated amount as follows:

Accumulated amount = (Invested amount + Interest amount)=($8,000+$4,800)=$12,800

Explanation of Solution

J invested $8,000 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 $4,800 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $12,800.

Conclusion

Therefore, the accumulated amount withdrawn by J (if interest earns simple interest) is $12,800.

(b)

To determine

To Calculate: The future value of a single amount (if the interest compounded annually).

(b)

Expert Solution

Answer to Problem AD.1BE

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$8,000×1.79586=$14,366.88

Explanation of Solution

J invested $8,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $14,366.88.

Conclusion

Therefore, the accumulated amount withdrawn by J (if the interest compounded annually)is $14,366.88.

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Answer 5

Chapter AD, Problem AD.1BE

(a)

To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

To determine: the amount withdrawn by J assuming investment earning simple interest.

(a)

Expert Solution

Answer to Problem AD.1BE

Calculate the amount of simple interest as follows:

Simple interest =( Principal amount×Interest rate× Number of periods)=($8,000×5%×12 years)=$4,800

Calculate the accumulated amount as follows:

Accumulated amount = (Invested amount + Interest amount)=($8,000+$4,800)=$12,800

Explanation of Solution

J invested $8,000 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 $4,800 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $12,800.

Conclusion

Therefore, the accumulated amount withdrawn by J (if interest earns simple interest) is $12,800.

(b)

To determine

To Calculate: The future value of a single amount (if the interest compounded annually).

(b)

Expert Solution

Answer to Problem AD.1BE

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$8,000×1.79586=$14,366.88

Explanation of Solution

J invested $8,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $14,366.88.

Conclusion

Therefore, the accumulated amount withdrawn by J (if the interest compounded annually)is $14,366.88.

Answer 6

Chapter AD, Problem AD.1BE

(a)

To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

To determine: the amount withdrawn by J assuming investment earning simple interest.

(a)

Expert Solution

Answer to Problem AD.1BE

Calculate the amount of simple interest as follows:

Simple interest =( Principal amount×Interest rate× Number of periods)=($8,000×5%×12 years)=$4,800

Calculate the accumulated amount as follows:

Accumulated amount = (Invested amount + Interest amount)=($8,000+$4,800)=$12,800

Explanation of Solution

J invested $8,000 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 $4,800 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $12,800.

Conclusion

Therefore, the accumulated amount withdrawn by J (if interest earns simple interest) is $12,800.

Answer 7

Chapter AD, Problem AD.1BE

(a)

To determine

Future Value: The future value is value of present amount compounded at an interest rate until a particular future date. The following formula is used to calculate the future value of an amount:

Future value of an amount = Present value×(1+ Interest rate)Number of periods

To determine: the amount withdrawn by J assuming investment earning simple interest.

Answer 8

(a)

Expert Solution

Answer to Problem AD.1BE

Calculate the amount of simple interest as follows:

Simple interest =( Principal amount×Interest rate× Number of periods)=($8,000×5%×12 years)=$4,800

Calculate the accumulated amount as follows:

Accumulated amount = (Invested amount + Interest amount)=($8,000+$4,800)=$12,800

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

J invested $8,000 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 $4,800 from the investment (using simple interest method). Therefore, the accumulated amount withdraw by J is $12,800.

Answer 13

Conclusion

Therefore, the accumulated amount withdrawn by J (if interest earns simple interest) is $12,800.

Answer 14

(b)

To determine

To Calculate: The future value of a single amount (if the interest compounded annually).

(b)

Expert Solution

Answer to Problem AD.1BE

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$8,000×1.79586=$14,366.88

Explanation of Solution

J invested $8,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $14,366.88.

Conclusion

Therefore, the accumulated amount withdrawn by J (if the interest compounded annually)is $14,366.88.

Answer 15

(b)

To determine

To Calculate: The future value of a single amount (if the interest compounded annually).

Answer 16

(b)

Expert Solution

Answer to Problem AD.1BE

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$8,000×1.79586=$14,366.88

Answer 17

(b)

Expert Solution

Answer 18

(b)

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

J invested $8,000 at 5% interest rate for 12 years. If the interest amount compounded annually then the future value of a 12^th year at 5% interest would be 1.79586 (Refer table 1 for the future value of money). Therefore, the amount earn by J is $14,366.88.