29. A man deposits P200 at the beginning of each month in a bank credits savings account with 5% compounded quarterly. How much is in the savings account at the end of 4 years assuming he never withdrew any amount nor failed to make his deposit?

29. A man deposits P200 at the beginning of each month in a bank credits savings account with 5% compounded quarterly. How much is in the savings account at the end of 4 years assuming he never withdrew any amount nor failed to make his deposit?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

See similar textbooks

Related questions

Q: Q2.4. An arithmetic cash flow gradient series equals $500 in year 1, $600 in year 2, and amounts inc...

Q: Your parent started to deposit monthly $20,000 in the bank 2 years after birth. The bank offers are ...

A: Amount deposited $20,000 monthly Rate of interest is 6%.

Q: (Computing interest tax savings) Dharma Supply has earnings before interest and taxes (EBIT) of $500...

A: The net income is calculated as EBIT less interest expense and taxes.

Q: Calculate the YTM for the following bonds. a. A 12 percent, 20‐year bond with a current price of $97...

A: The yield to maturity (YTM) of a bond is the total return predicted if it is held to maturity. Yield...

Q: Suppose then that we have three London seats, New York and Madrid In the first, the buyer type is 10...

A: Arbitrage: The foreign exchange rates between the three currencies are said to be in equilibrium if ...

Q: At the present time, Bogdan Enterprises does not have any preferred stock outstanding but is looking...

A: Cost of preferred stock = Annual dividend / Share price Annual dividend = $15 Share price = $142.73...

Q: Assume the stockholders of Rowatt Equipment stock are in the 32 percent tax bracket. The closing pri...

A: Stock Price = $21.86 per share Quarterly dividend = $1.65 per share

Q: Paul obtains a 30-year loan at an annual 7.4% on a $250,000 house where the required down payment is...

A: Given: Years = 30 Interest rate = 7.4% Cost of house = $250,000 Down payment = 15%

Q: 17. Calculating Present Values Suppose you are still committed to owning a $175,000 Ferrari (see Que...

A: A Mutual fund is a source of investment where investors pool their money and give it to mutual fund ...

Q: Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per...

A: The minimum rate of return required to earn on equity capital without affecting the market value of ...

Q: Calculate for the cost of site clean-up if the total duration of the project is 18 months. The estim...

A: Earnings before interest, depreciation and taxes are the operating income earned by the company duri...

Q: Bill's Bakery expects earnings per share of $2.10 next year. Current book value is $3.80 per share. ...

A: Given: Earnings per share = $2.10 Current book value=$3.80 Discount rate = 12% Growth rate = 2.50%

Q: Question 14 Which of the following is the most advantageous for a debtor if he borrowed P15, 000 at ...

A: We know, exact interest is calculated by taking exact number of days in a year [i.e. 365 or 366 in c...

Q: (Analyzing coverage ratios) (Related to Checkpoint 15.1 on page 502) The income statements for Home ...

A: $ thousands 2016 2015 2014 Net operating income (EBIT) $ 1,17,74,000.00 $ 1,04,69,000.00 $ 9...

Q: A Corporation believes that it can sell long term-bonds with an 8% coupon rate, although the effecti...

A: Corporate bond kind of debt issued by profit-generating organizations. These bonds are risky, unlike...

Q: 1. Which of the following is not a component used in calculating the cost of capital? A. The cost of...

A: A company uses various sources of funds to meet its capital needs. These funds entail a certain cos...

Q: Cloud Venture has a line of credit with a local bank of $75,000. The loan agreement calls for intere...

A: Information provided: Line of credit = $75000 Interest “r” = 6% Compensating balance = 3% Amount to...

Q: If provincial tax rates are 16% on the first $40,100; 20% on the next $40,100; and 24% on any income...

A: Tax rate = 16% on first 40,100 Tax rate = 20% on next 40,100 Income = 65,000

Q: You are considering adding Gamma stock to your portfolio. What is the required return on the stock i...

A: Required return: It is the return that is accepted by an investor for holding a stock of a particula...

Q: Gina has an opportunity to save $260 per month at an APR of 6.35% in a 401K plan through work. She p...

A: Investment means engaging your funds to generate income for the future. There are various purposes f...

Q: Anderson International Limited is evaluating a project in Erewhon. The project will create the follo...

A: The difference between the current worth of cash inflows and withdrawals over a period of time is kn...

Q: If you wish to accumulate $205,000 in 6 years, how much must you deposit today in an account that pa...

A: Future value (FV) = $205,000 Interest rate = 15% Monthly interest rate (r) = 15%/12 = 1.25% Period =...

Q: A 91-day Treasury Bill with a face value of $150,000 is sold to yield 3.01 % p.a. What is the purcha...

A: A T-Bill is a money market instrument issued by the Treasury. The maturity date of such bills is les...

Q: Consider a loan of $98,000 at 7% compounded annually, with 12 annual payments. Find the following. (...

A: Loan amortization can be defined as the procedure of amortizing the loan in such a way that the loan...

Q: ases a $1000 face value bond for $950. you held the bond for 10 years until it doubles in face value...

A: Value of money grow with time and according to interest rate and more is compounding more is the int...

Q: At i = 10% per year and a loan amount of $10,000. If N= 20, what are the payments and future value? ...

A: A sequence of payments of equal amounts in equal intervals of time can be called annuity. Loan repay...

Q: a purchaser makes a 20% down payment on a new home and obtains a loan for the balance. The lender ch...

A: Discount points = 2 Loan origination fees = 1000 Down payment = 20% Mortgage = 80%

Q: (Related to Checkpoint 6.2) (Present value of an ordinary annuity) Nicki Johnson, a sophomore mechan...

A: Annuity refers to a series of payments with a fixed number of instalments of the same value and made...

Q: Find the actual percentage he spent for the month. Experts recommend using no more than 25% of avail...

A: Previous Balance $ 174.10 Purchases/Debits $ 441.92 Credit Limit $ 2,500.00 Available...

Q: Vitality Vancouver Inc. (VVI) has recently raised debt capital through long-term financing. The bond...

A: Thanks for the question Bartleby's Guideline: “Since you have posted a question with multiple sub-pa...

Q: 1. You buy a call option on a stock for $7 with a strike price of $60. The stock currently sells for...

A: For calculating profit or loss on options, we have to compute selling price with strike price. Curre...

Q: White Lion Homebuilders Co.'s addition to earnings for this year is expected to be $857,000. Its tar...

A: The undistributed earnings available to shareholders are known as retained earnings. Companies retai...

Q: John Mayer Inc. purchases a house for $500,000. On January 1, He makes a 20 percent down-payment and...

Q: 11. Suppose a firm wants to issue long-term debt securities. What are the legal processes that the f...

A: Long-term debt securities Long-term debt securities are those securities that mature in more than on...

Q: 14. Find the accumulated value at the end of 10 years if P100 is invested at the rate of 12% compoun...

A: The accumulated value is calculated as the future value of account

Q: What are deep-in-the money currency options? Why is writing deep-in-the-money currency options tanta...

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...

Q: Calculating the Number of Periods You've been offered an investment that will pay you 7 percent per ...

A: Future Value The future value is the amount that will be received at the end of a certain period. Th...

Q: ABC trucking has issued and 14%, 10 year bond that pays interest semiannually. If the market prices ...

Q: Calculating Future Values Assume you deposit $1,000 today in an account that pays 8 percent interest...

A: The future value (FV) is the amount of money at some future time given a particular interest rate an...

Q: (Calculating capital structure weights) The common stock of Moe's Restaurant is currently selling fo...

A: The capital structure weights to be used should be based on the market value.

Q: find the monthly payment and total interest paid (B) suppose the family decides to add an extra $100...

A: Mortgage can be defined as a type of loan where the borrower borrows money from the lender to purcha...

Q: what does it mean if the npv and irr are both negative quora, should the company invest in the proje...

A: Capital Budgeting entails long-term planning and monitoring of capital expenditures, as well as a ra...

Q: In certain cases, experience will indicate the best time to perform certain operations to maintain e...

A: Answer - Part 1 - Calculation of Cost per piece - ( 200 pieces) Particular Amount Piece pro...

Q: You are comparing two investments. The first pays 3 percent interest per month, compounded monthly, ...

A: a) i) First investment: Rate of interest i =3% per month Number of compounding periods in one half y...

Q: Given the rate per compounding period, find r, the annual rate 0.25% per month

A: P =R / M Here P = Rate per compounding period R= Annual rate M=Times amount compounded

Q: 1. Compute the average beta for the five firms in the acrospace/defense industry. 2. Now, compute th...

A: Investment appraisal involve appraising a new project or investment a company is going to undertake....

Q: 1. Simple Interest versus Compound Interest First City Bank pays 7 percent simple interest on its sa...

A: First city bank simple interest rate (i) = 7% Second city bank compound interest (r) = 7% Deposit (D...

Q: Suppose Tom is 20 years old. He works till 50 years old, retire, and live up to 80 years old. Tom kn...

A: The notion of the time value of money (TVM) is concerned with money's purchasing power capability, w...

Q: he risk-free rate is 5 percent. The Market Portfolio’s expected return and standard deviation are 1...

A: The portfolio is a combination of multiple assets, the return and risk of a portfolio depend on thes...

Q: Purchase price = Today's Zillow Zestimate 521500 You will pay a down payment = 15% of purchase price...

A: The purchase price is the price at which the asset is available for the customers to purchase. Down ...

Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

29. A man deposits P200 at the beginning
of each month in a bank credits
savings account with 5% compounded
quarterly. How much is in the savings
account at the end of 4 years
assuming he never withdrew any
amount nor failed to make his deposit?
10,642.53
10,447.35
10,135.12
10,920.20

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1 Analysis

VIEW

Step 2 Calculation of monthly interest rate

VIEW

Step 3 Calculation of amount of saving

VIEW

Step 4 Conclusion

VIEW

Step by step

Solved in 4 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

Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
A person opens a bank account with a deposit of $150 what is the future value of this amount after 3 years if the interest rate is 8% compounded quarterly? O a. 166.29 O b. $190.23 c. $300 O d. 188.20
8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25. At the end of October the interest was computed at an annual rate of 6% and added to the balance in your account.. a. How much simple interest did your money earn? b. What was your new balance?
An individual makes five annual deposits of P 2,000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year. Five years after the last deposit the accumulated money is withdrawn from the account. How much is withdrawn? Select one: a. P 16,701 b. P 12,356 c. P 15,824 d. P 14,223**please do not use excel
If you deposit OMR 27177 in your account in a bank. Suppose the bank pays 12% compound interest quarterly. Calculate value of your money in 4 years Select one: a. 166607.80 b. 43611.11 c. 16935.81 d. 42749.42 e. All the given choices in this question are not correct
A person wishes to get 800$ at the end of second year and 900$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: a. 1220$ b. 1271$ c. 1160$
You deposit $100, $150, & $200 in a bank account at the end of years 1,2,& 3 and earn 7%interest. If (P/G, 7%, 3)=2.506 and (A/P, 7%, 3)=.3811 what is the present value (now) ofthese deposits.
A person wishes to get 400$ at the end of third year and 600$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: O a. 650$ b. 625$ O c. 620%
Five years ago you opened a savings account with annual compound interest by depositing $1500. You check your balance today, and it is $1738.91. Assuming u have made and will make no withdrawals or deposits, when will your account have a balance of $3000 ? In ___ years round to nearest tenth
Assume Jed Gerbil invested $ 12,524 into an account exactly two years ago. The account has an interest rate of 13.1 % p.a. How much does Jed have in his account today (that is, exactly two years after the initial deposit)? (Round your answer to the nearest cent and record your answer without a dollar sign and without commas. For example, record $1,356.8382 as 1356.84).
1- A person deposits 200.00 riyals at the end of each month for a year in a bank, and it has been found that the total of what he is entitled to at the end of the year is 2510.00 riyals. What is the interest rate? 2- A person deposited 900.00 riyals first every two months for a whole year, then began depositing 400.00 riyals at the beginning of each Two months for another year. If the interest rate is 15%, what is his balance at the end of the period? 3- In the first of every two months, a person deposits a certain amount. If it is found that the total of what he is entitled to at the end of the year is EGP 3,920, and if the annual interest rate is 12%, what is the value of the equal payment ? 4- Find a sentence of a semi-annual payment with a periodic value of 300.00 riyals, and it is paid for two years and with simple interest at a rate of 5% annually if the payments are: (a) regular, (b) immediate 5- A person deposited 500.00 riyals in a bank at the beginning and middle of each…
26 (b) Samuel Norris deposited $450 in a new regular savings account that earns 4% interest compounded quarterly. He made no other deposits or withdrawals. How much is the compound interest? * Your answer hp