1041934.60 the right answer. I just need how to come up with that answer Problem 3: Kate deposits P5,000 to her bank account everyyear when she was in high school for four years to preparefor her college degree. She took an engineering course andsince then, she stopped depositing to her bank account. Rightafter graduation (she graduated on time), she got a job thatpays P250,000 a year. If she continues to deposit to the samebank account P50,000 every year for 10 years, calculate thefuture worth after 30 years if the deposits are made at theend of each year and the bank pays 2% interest per year

The concept of the time value of money states that the current worth of money is more than its value…

Problem 3: Kate deposits P5,000 to her bank ac vear when she was in high school for four years or her college degree. She took an engineering c ince then, she stopped depositing to her bank ac after graduation (she graduated on time), she gọt

Problem 3: Kate deposits P5,000 to her bank ac vear when she was in high school for four years or her college degree. She took an engineering c ince then, she stopped depositing to her bank ac after graduation (she graduated on time), she gọt

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 28P

See similar textbooks

Related questions

Q: On 1 April, the owner decided to start a laundry business. He withdrew R200 000 from personal…

A: According to accounting equation, assets = Liabilities + owners' equity

Q: 4-54. Kris borrows some money during her senior year to buy a new car. The car dealership allows her…

A: Amount of loan = $ 25000 Interest rate(r) = 0.75% Total Monthly Installments(n) = 60 month end

Q: Required: Briefly explain whether the $7,000 and the $180,000 receipts constitutes ordinary income'…

A: The answer for the question on ordinary income is discussed hereunder: What is ordinary income?…

Q: 3. In the 2nd week of the year, Carrie had $700 in her savings account. At 5 weeks she had $325. Use…

A: Given At x=2, y=700 At x=5, y=325 Consider the equation as y=ax+b …(1), where a and b are…

Q: You deposited $5,000 in an account that pays 8% interest per annum. When your son is ready for…

A: Number of years is the period required to earn a certain sum in the near future at given interest…

Q: d of Marbella there are three banks: Bank A, Bank ulations, all banks are required to hold at least…

A: a.

Q: Mary Moore opened a new savings account. She deposited $2,000 at 4% compounded quarterly. At the end…

A: Deposit now (P) = $ 2000 Annual interest rate = 4% Quarterly interest rate (r) = 4%/4 = 1% Deposit…

Q: Steve invested $ 10,000 in a savings bank account that earned 2% simple interest. Find the interest…

A: Principle (P) = $ 10,000 Time period (T) = 4 years Rate of Interest = 2% = 0.02 Formula to be…

Q: 15, Lizabeth Neault needed funds to open a law office. She borrowed $28,400 at 8.5% simple interest…

A: Simple interest refers to the net amount of interest paid by the borrower to the lender on the…

Q: SITUATION 3: Vanessa wants to be a 'wise' money saver. She has 20,000 Php and is willing to put it…

A: Let the amount in 15% bank = X Amount in 10% bank = 20000 - X

Q: Alphy Jurarim used a credit card from Citibank to help pay for tuition expenses while in college and…

A: Amount owed = 5232.25 Interest Cost = 1.75% per month

Q: 4-54. Kris borrows some money during her senior year to buy a new car. The car dealership allows her…

A: in this problem we to calculate present value of loan and find monthly payment and find out monthly…

Q: a) Mr. San Juan has a total savings of P 300,000 which he invested in a business venture b) Knowing…

A: The financial statements of the business include the income statement, balance sheet and cash flow…

Q: Laila Ramos decided to open abicycle and car rental business on October 1, 2021 to augment the…

A: Laila Ramos Trial Balance As on October 31, 2021 Account Debit Credit Cash 2,23,000…

Q: 3. Christina saved a small dollar amount throughout her senior year and now has $712. She can choose…

A: The following computations are done for Christiana to evaluate the two bank offers for investing her…

Q: On 1/1/2020, a young pioneer started his commercial project with a capital of 10,000 dinars, and he…

A: For making journal entries, debit and credit rules needs to be followed. These rules are based on…

Q: interest

A: Borrowed Amount p25000 Rate of interest 12% for 24 month

Q: Vernon is left RM10,000 by his great aunt in his will. He puts RM4,000 into his own current account…

A: As per our protocol we provide solution to one question only but you have asked multiple questions…

Q: Michael is planning to apply for a loan in Quezon Cooperative Bank, he is already aware of the terms…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Create journal entries to record the following transactions. 1. James purchases a 5,000 piece of…

A: Journal entries are used for recording financial transactions.it is also used to prepare the ledger…

Q: Mr. Zee started a Grocery store on March 1, 2020. The following transactions occurred during the…

A: A double-entry bookkeeping system is a system of accounting for the transactions of a business.…

Q: Due to the current difficult economic conditions, people have had to face many difficulties. N Smile…

A: Accounting equation is the basis of double entry accounting system. The single transaction affects…

Q: Mr. Zee started a Grocery store on March 1, 2020. The following transactions occurred during the…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Supposed that a person buys a new car. The person wishes to set aside enough money in a bank account…

A: Maintenance cost refers to the any expenses arises by an individual or business to keep running…

Q: pol year. She plans to become a Certified Public hes her degree in accountancy. Silver receive her…

A: Personal Finance Management is a process of handling our Finances in the areas of Spending, Savings…

Q: 1. Nita and Bona entrepreneurs, agreed to invest cash to put up a business selling signature bags.…

A: This s a partnership accounting question. What is meant by Partnership? The partnership is a term…

Q: Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal…

A: please like the answer your response matters Date Account titles Debit Credit Nov. 8…

Q: Cass Sy put up her own internet business. The following are the transactions for the month of June…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Kathy Wintz formed a lawn service business as a summer job. To start the corporation on May 1, 2018,…

Q: pur grandfather put some money in an account for you on the day you were born. You are now 18 years…

A: Here we can use the concept and formulas of time value of money to solve the questions. Time value…

Q: Last year Nate opened a savings account with a deposit of $17,250. The account was in the name o…

A: Meaning of gift : When a person transfers the rights of a property to other person without…

Q: A student saved $3,000 per year from 1 2001 (15 years) in an account with 8% ir He stopped…

A: We need calculate future value of annuity from 1986 to 2011 by using this equation FVn =CF(1+i)n -1i…

Q: Your grandfather put some money in an account for you on the day you were born. You are now 18 years…

A: Amount in the account at the age of 18 = $8059 r = 12%

Q: _5. When an entrepreneur financed his/her business with debt, lender has the right to tel him/ her…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Name :Christabella age :34 years old Saving :450,600 have car license Job :Global Banking Manager…

A: Secured loan is defined as the form of the debt, where the borrower used to pledge some of the…

Q: Jon was born on March 1, 1983. On the day he was born, Jon's grandfather made an investment of…

A: Interest is an extra amount which is received on deposited value for the period. It increase the…

Q: Cass Sy put up her own internet business. The following are the transactions for the month of June…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: 3. Zafri decides to borrow RM25,000 from a bank that charges 4.7% discount rate for 6 years to set…

A: Proceeds: This includes all the amount that is supposed to be received by the investor from the…

Q: Pedro deposits a sum of money in Metrobank for Juan. He wants Metrobank to send Juan checks of P…

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

Q: Two partners Mr. Abdullah and Mr. Yahya running their business. The business avails an overdraft…

A: The cheque is valid in the above case as if partners death is not a reason of dissolution of the…

Q: Create journal entries for sage 50. ? 1.The owner Jasmine, had the bank transfer (by the bank memo)…

Q: May I ask for an explanation and solution to the question for a better understanding. Thank you! 4.…

A: Money that will be received after 18 months is the future value of the deposited amount. Future…

Q: s money hc holdingr

A: She will withdraw 4 x 100 = $ 400

Q: 2. For each of the following transactions, place an X in the table to indicate whether direct or…

A: *As per Bartleby policy, if multiple questions are asked then answer first three only. Direct…

Question

1041934.60 the right answer. I just need how to come up with that answer

Problem 3: Kate deposits P5,000 to her bank account every
year when she was in high school for four years to prepare
for her college degree. She took an engineering course and
since then, she stopped depositing to her bank account. Right
after graduation (she graduated on time), she got a job that
pays P250,000 a year. If she continues to deposit to the same
bank account P50,000 every year for 10 years, calculate the
future worth after 30 years if the deposits are made at the
end of each year and the bank pays 2% interest per year

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

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
Problem 3: Kate deposits P5,000 to her bank account every Vear when she was in high school for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated on time), she got a job that pays P250,000 a year. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year Fc W
Kate deposits P5,000 to her bank account every year when she was in highschool for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated ontime), she got a job that pays P250,000ayear. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year
A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $30,000 saved up for when she goes to college in 17 years, assuming the account earns a 4% return. Annual deposit: $
4. You deposited P1,000 in a savings account that pays 8% interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to Quezon City to become a call center agent rather than continue in school, so you close out your account. How much money will you receive? *
Kate deposited P5,000 to her bank account every year when she was in high school for four years to prepare for her college degree. She took an engineering course and since then, she stopped depositing to her bank account. Right after graduation (she graduated on time), she got a job that pays P250,000 a year. If she continues to deposit to the same bank account P50,000 every year for 10 years, calculate the future worth after 30 years if the deposits are made at the end of each year and the bank pays 2% interest per year. *Please show your correct and complete solutions to this problem. Thank you!*
Leslie Mosallam, who recently sold her Porsche, placed $10,000 in a savings account paying annual com- pound interest of 6 percent. a. Calculate the amount of money that will accumulate if Leslie leaves the money in the bank for 1, 5, and 15 years. b. Suppose Leslie moves her money into an account that pays 8 percent or one that pays 10 percent. Rework part a using 8 percent and 10 percent. c. What conclusions can you draw about the relationship among interest rates, time, and future sums from the calculations you just did? use EXCEL to work this out and show the formula!
Gina has planned to start her college education four years from now. To pay for her college education, she has decided to save $1,000 a quarter for the next four years in a bank account paying 12 percent interest. How much will she have at the end of the fourth year? O a. $16,000 O b. $1,574 O c. $19,116 O d. $20,157
A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $40,000 saved up for when she goes to college in 16 years, assuming the account earns a 4% return.
Your grandfather put some money in an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $8059 in it and pays an 12% interest rate. a. How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put in the account?
Your grandfather put some money in an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $2,407 in it and pays an 5% interest rate. a. How much money would be in the account if you left the money there until your 20th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put in the account? ... a. How much money would be in the account if you left the money there until your 20th birthday? If you left the money there until your 20th birthday, the amount in the account would be $ (Round to the nearest cent.)
(b) A mechanical engineer who is planning for his daughter's college education plans to start depositing money now (year 0) and continue through year 17. If he deposits RM 5,000 each year, (i) Determine how much will his daughter be able to withdraw each year starting in year 18 and continuing through year 22? Assume the account earns interest at 10% per year.