A student invests $1000 in a bank account that pays an interest rate of 3.25% compounded monthly. a) Develop a formula which will calculate the value of the investment (V) with respect to the number of compounding periods (n). b) Hence, or otherwise, use the formula you developed in part a) to calculate: • The value of the investment after 10 years • The time taken for the investment to reach $10 000
Q: Standard Chartered Bank Berhad pays 7 percent annual interest on its fixed deposit account, whereas…
A: Deposit = 5000 Standard Chartered Bank Annual Rate = 7% Time Period (N) = 8 years UOB Bank…
Q: A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly.…
A: Amount put in savings bank = $ 10,000 Interest Rate(r) = 16% compounded quarterly = 16/4 = 4% Total…
Q: Suppose an individual makes an initial investment of $2,400 in an account that earns 6.6%,…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: Suppose an individual makes an initial investment of $2500 in an account that earns 7.8%. compounded…
A: Given information: Initial investment is $2,500 Interest rate is 7.8% Number of periods is 12 made…
Q: A deposit of 120 000.00 Php is placed into a college fund at the beginning of every month for 10…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Suppose you borrowed Php 30,000 on a student loan at a rate of 8% and must repay it in three (3)…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
Q: An investment that cost ₱300,000 was placed in a bank and the bank gave you a 4% compound interest…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to…
A: Compound interest is interest added to the principal amount of a loan or deposit, or interest on…
Q: Suppose that $17,000 is invested in a savings account paying 5.1% interest per year. (a) Write the…
A: Compound interest formula: A = P(1+r/n)^nt Where A is the future amount, P is the principal, r is…
Q: uppose an individual makes an initial investment of $1,200 in an account that earns 6%, compounded…
A: We will apply the concept of time value of money here. As per the concept of time value of money the…
Q: You borrow $ 1 million on a 10-year loan from a bank to finance the expansion of your business.…
A: Note: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts…
Q: If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from…
A: Amount Deposited each year is P10,000 Time period is 9 years Interest rate is 14 % compounded…
Q: 1.-What is the size of 60 monthly payments and 5 annuities that result from the purchase of land…
A: As per the honor code, we’ll answer only one question at a time, we have answered the first question…
Q: Suppose you borrowed Php 30,000 on a student loan at a rate of 8% and must repay it in three (3)…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: a customer invests IDR 20 million in the money market and earns 12% compound interest How much money…
A: The addition of interest to the principal sum of a loan or deposit is known as compound interest. It…
Q: An account pays 4 percent interest (yearly effective). 10,000 dollars is deposited into that account…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Find the annual deposit
A: Compound interest is the interest on interest. Under this method the interest is calculated by…
Q: Suppose that you borrow $10,000 from a bank to purchase a car. You agree with the bank to repay the…
A: Given: Particulars Amount Loan $10,000 Interest rate 16% Years 1
Q: A Student loan totals $30,000 at graduation. The nominal interest rate is 12% compounded monthly,…
A: Total payments= 32 Total amount of loan (L)= 30000 Rate of interest (r) = 12%/12 = 1.0% per month…
Q: Columbia Corporation deposited $2,000 in an account that pays 12% interest annually. If the interest…
A: Continuous compounding of an amount of $2,000 at an interest rate of 12% and for a period of 20…
Q: You just received a $5,000 bonus. a. Calculate the future value of $5,000, given that it will be…
A: Bonus received = $5,000 Future value is computed in all the parts by using an excel formula.
Q: A bank offers an investment account that has an annual interst rate of 9.9%, compounded quarterly.…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: If 6000 dollars is invested in a bank account at an interest rate of 8 per cent per Find the amount…
A: Future value is the value of present cashflow compounded to future date at specified rate. formula:…
Q: $100 is deposited in the bank and remains in the account for three years, earning 6% per year with…
A: Here, Initial Deposit Amount is $100 Interest Rate is 6% Interest Method is Simple Interest Method.
Q: You initially deposit $3,000 in to a savings account for 5 years, paying 6% compounded annually.…
A: Savings accounts is referred to as an interest bearing deposit account, which used to held at the…
Q: A young executive deposits $400 at the end of each month for 4 years into an account that earns 6%…
A: Formulas:
Q: Suppose that $850,000 is invested in a savings account paying 5.25% interest per year. (Round…
A: the given information amount = $850,000 interest rate = 5.25%
Q: If P8,000 is deposited in the bank each year for 10 years, how much annuity can aperson get annually…
A: Future value = p/r * ((1+r)n - 1) P = 8000 r = 12% N = 10 Future value = 140,389.88
Q: A person invested two amounts in a bank for a full year at a common interest rate. The total…
A: in this question one has to find the interest of the first amount in numerical terms as well as in…
Q: cashflow diagram.
A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…
Q: *A KSU graduate plans to start a consulting firm now by borrowing $75,000 at a compound interest…
A: Solution Given Loan amount $75000 Interest rate 5% Number of year 10 years We…
Q: An Engineering firm deposits Kshs.1,000,000 into a bank that pays an interest of 5% per annum…
A: Future value = Present value * (1 + Interest rate)^number of years
Q: Suppose that you earned a bachelor's degree and now you're teaching high school. The school district…
A: a) The formula to calculate accumulated value of an annuity is given below: Here, i is interest…
Q: Suppose that you make 12 equal annual deposits of Php 2,000 each into a bank account paying 8%…
A: Annual deposit (P) = Php 2,000 Annual interest rate (R) = 8% Number of annual deposit (N) = 12
Q: n the coming three years, you will need Php 200,000. What amount will you deposit in a bank at…
A: solution Given for first question Future value needed 200000 Present value ?…
Q: A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly.…
A: The question is based on the concept of Future Value
Q: Mr. Jimin borrowed money to CBA Bank for $211,000 for business development the chicken farm. The…
A: Given, Loan Amount - 211,000 Interest rate = 9% (compounded monthly) Period - 12 years
Q: Suppose an individual makes an initial investment of $2,600 in an account that earns 7.8%,…
A: The time value of money refers to the concept that states that the money present today is more…
Q: Person A deposits $ 1,000 in a bank account at the beginning of each year for 15 years. If the…
A: Future Value(FV) is worth of current amount at future point that is computed by compounding current…
Q: $3000 are invested in a bank account at an interest rate of 5 percent per year. Find the amount in…
A: As per the answering guidelines we are allowed to solve the first three parts of a question. The…
Q: A bank offers and investment account that has an annual interst rate of 9.9%, compounded quarterly.…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: interest
A: Formula to calculate rate of interest is: r = n*[(A/P)^1/nt - 1] where n i the no of compounding…
Q: Five years ago, you entered into a 10-year investment with a simple interest of 4% per annum and a…
A: Simple interest is simple interest without considering the impact of compounding on that but…
Q: Suppose you borrowed $ 15 000 at 8% monthly interest to repay it in monthly installments over 4…
A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…
Q: !
A: Compound Interest Compound interest refers to the interest that includes interest on principal as…
Q: You invest $5,000 into a money market account that pays interest monthly (e.g., interest is…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Step by step
Solved in 4 steps with 1 images
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Please refer to the formulas in the lesson and on the following website. Pay particular attention to the examples. Scroll to the bottom to review a table with a list of various formula arrangements that may be helpful in completing this assignment. 1) If you deposit $4,000 today in a bank account and the interest is compounded annually at 10 percent, what will be the value of this investment: a. five years from now? b. ten years from now? c. fifteen years from now? d. twenty years from now? 2) If a business manager deposits $12,000 in a savings account at the end of each year for twenty years, what will be the value of her investment: a. at a compounded rate of 12 percent? b. at a compounded rate of 18 percent? 3) The chief financial officer of a home health agency needs to determine the present value of a $60,000 investment received at the end of year 15. What is the present value if the discount rate is 5%? 4) After completing her residency, an obstetrician plans to invest $9,000…
- Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. i Click the icon to view some finance formulas. a. What is the accumulated value if the money is compounded semiannually? (Round to the nearest cent as needed.) b. What is the accumulated value if the money is compounded quarterly? (Round to the nearest cent as needed.) C. What is the accumulated value if the money is compounded monthly? S (Round to the nearest cent as needed.) d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.)Find the accumulated value of an investment of $25,000 for 5 years at an interest rate of 5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. Click the icon to view some finance formulas. ..... a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A A: P = A =Pert Y = -1 nt 1+ Print DoneFind the accumulated value of an investment of $20,000 for 5 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. Click the icon to view some finance formulas. *** a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent.) In
- You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years.Find the value of sn\i. Group of answer choices 11.76470588 16.87675201 51.10869654 48.37701323You have RM 5,000.00 you want to invest for the next 45 years until retirement. You are offered an investment plan that will pay you 6 percent per year for the next 15 years and 10 percent per year for the last 30 years.a) Explain the time value of money principleb) Identify the underlying assumption of the time value of money principlec) Draw a graph that illustrates the relationship between interest rates and the present value of RM 1,000.00 to be received in one year.d) Suggest how you can minimize the amount of cash you must invest in order to reach your retirement goal.e) Compute the amount you will have at the end of the 45 years.f) Calculate the amount you would have if the investment plan pays 10 percent for the first 15 years and 6 percent per year for the next 30 years.You decide to deposit $7000 at a local bank for three years at a 8% rate of interest compounded semiannually. The future value of your investment is approximately equal to ________. (Use the formula approach and round your final answer to the nearest dollar.) Group of answer choices $8680 $8857 $8878 $8818
- suppose you make 2 annual $10,000 payments, the first one starting at the beginning of year 5 (end of year 4). To accumulate the money to make these payments, you want to make 4 equal payments into an investment account, the first to be made one year from today. Assuming a 10% rate of return, what is the amount of these 4 investment payments? a. 4110 b. 4114 c. 4118 d. 4122 Please show your work!Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negative