Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

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Answer 1

Question

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

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

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

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

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.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 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 $10.775.16. Therefore, the future value of an amount is $10.775.16.

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Answer 2

Question

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

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

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

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

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.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 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 $10.775.16. Therefore, the future value of an amount is $10.775.16.

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Answer 3

Question

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

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

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

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

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.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 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 $10.775.16. Therefore, the future value of an amount is $10.775.16.

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Answer 4

Question

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

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

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

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

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.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 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 $10.775.16. Therefore, the future value of an amount is $10.775.16.

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Answer 5

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

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

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

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

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.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 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 $10.775.16. Therefore, the future value of an amount is $10.775.16.

Answer 6

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Expert Solution & Answer

Explanation of Solution

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

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

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

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.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 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 $10.775.16. Therefore, the future value of an amount is $10.775.16.

Answer 7

Chapter G, Problem 1BE

To determine

Determine the accumulated amounts withdraw by J. Calculate the future value of a single amount (if the interest compounded annually).

Answer 8

Expert Solution & Answer

Explanation of Solution

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

Step 1: Calculate the amount of simple interest.

Simple interest =( Principal amount×Interest rate× Number of periods)=($6,000×5%×12 years)=$3,600

Step 2: Calculate the accumulated amount.

Accumulated amount = (Invested amount + Interest amount)=($6,000+$3,600)=$9,600

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

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.

The future value of the amount is determined as follows:

Future value of an amount=( Invested amount × Future value of 12thyear at 5%interest (future value factor))=$6,000×1.79586=$10,775.16

J invested $6,000 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 $10.775.16. Therefore, the future value of an amount is $10.775.16.