If you put 1,000 in a savings account that yields an 7℅ annual rate of interest that is compounded weekly, how much would that be worth in 25 weeks?
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A: The computation of monthly payments:Hence, the monthly payment is 212.66.
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A: Periodic Payment = $100 Future Value = $2,000 Time Period = 15 Months
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A: Given: Money invested today (C)= $1000 Interest rate (r) = 6% =0.06 Number of years (n) = 1
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A: Present Value = Annuity * PVAF (Periodic rate, Number of Periods )
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A: The present value of an investment refers to the sum amount of money that will be required today in…
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A: Details: RATE (5.75%/12) 0.479167% PERIOD (12*5) 60 PRESENT VALUE $0 FUTURE VALUE $20,000
Q: Suppose you put $200 into a bank account at the annual interest rate of 7%. *Round your answer to…
A: In this we have to find the future value of given value.
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A: Solution: An amount invested earns interest over it. So, we have, FV = PV (1+i)t where, FV = Future…
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A: The deposit required to be made today can be calculated as the present value
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Q: What's the future value of an initial $100 after 3 years if it is invested in an account paying 10%…
A: Given: Initial deposit = $100 Time =3 years Interest rate = 10% Future value = Initial deposit* (1…
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Q: how much money must you put in a savings account today?
A: PV is the money value in today’s terms which is to be received at some future date whereas FV is the…
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A: The interest rate that did not take inflation, any fees on the loans, and compounding of the…
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A: The concept of the time value of money states that the current worth of money is more than its value…
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A: We can use excel spreadsheet to solve this problem.
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A: Future Value = Present Value * (1+r)^n Where, n = no. of compounding period i.e. 3 years * 12 = 36 r…
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A: 1) FV = PV * (1 + r / m)m*n FV = future value PV = present value = $12,000 r = rate of interest =…
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A: Interest paid = total payment - financed amount
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A: Retirement planning involves the set of activities that determines the income goals that an…
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A: Monthly deposit (m) = $500 Monthly interest rate (r) = 0.00416666666666667 (i.e. 0.05 / 12) Number…
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A: Computation:
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A: Solved using Financial Calculator PV = 47,000 PMT = 650 I/Y = 8/12 = 0.6666666667 CPT N = 99.0104…
Q: Suppose you want to have $600,000 for retirement in 25 years. Your account earns 10% interest. How…
A: Future Value $ 6,00,000.00 Time Period 25 Interest Rate 10%
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A: Given: Finance amount = $255,000 Payment per month = $2,223.17 Years = 30
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A: Time value of money (TVM) means that the money received today will be worth more than the money…
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A: Deposit money (P) = $12000 Compound interest (r) = 2.9% compounded monthly Time (nt) = 6 years =…
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A: Given data; Deposit amount = $1000 real interest rate = 2% inflation rate = 6%
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A: It can be calculated using following formula PV = FV / (1 + r / n)nt Where, PV = Present value FV =…
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A: Annual Percentage rate (APR) is the percentage rate that shows the interest calculates on the…
Q: How much would be in your savings account in 11 years after deposting $150 today if the bank pays 8…
A: Given: Present value (PV) = $150 Rate of interest (r) = 8% = 0.08 Number of years (n) = 11
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A: Present value = 50000 Interest rate = 2% Days = 30 Assume 365 days in Year
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If you put 1,000 in a savings account that yields an 7℅ annual rate of interest that is compounded weekly, how much would that be worth in 25 weeks?
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- You have $100 and a bank is offering 5% interest on deposits. If you deposit the money in the bank, how much will you have in one year? How do you do calculate this on a calculator. This would be a future value problem correct?Please provide the steps to solving this problem using a financial calculator: You just opened a brokerage account, depositing $3,500. You expect the account to earn an interest rate of 9.652%. You also plan on depositing $4,500 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?Suppose your bank account will be worth $4,200.00 in one year. The interest rate (discount rate) that the bank pays is 5%. What is the present value of your bank account today?
- For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)One can solve for payments (PMT), periods (N), and interest rates (1) for annuities. The easiest way to solve for these variables is with a financial calculator or a spreadsheet. Quantitative Problem 1: You plan to deposit $2,100 per year for 4 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 4 years? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. Assume that your deposits will begin today. What amount will be in your account after 4 years? Do not round intermediate calculations. Round your answer to the nearest cent. $ Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living 25 years after you retire and would like to have $95,000 annually on which to live. Your first withdrawal will be made one year after you retire and you anticipate that your retirement account will earn 12% annually. a.…In this project, you will use a graphing calculator to compare savings plans. For instance, suppose you are depositing $1000 in a savings account and are given the following options: 4 • 6.2% annual interest rate, compounded annually 6.1% annual interest rate, compounded quarterly 6.0% annual interest rate, compounded continuously •
- Suppose you put $1000 in an account today and you need to have $6727.5 in the future. If the bank pays 10%, how many years (n) will it take you to have $6727.5?2. Suppose you have a bank account into which you make $100 deposits each month. You find a bank account paying r 100% (r is a decimal rate) per month. You would like to save up for a $2,000 car down payment, which you would like to have in 15 months. What must the bank account pay in order for this to be accomplished?Suppose I have a balance of $4500 on my Bank of America credit card. Assume the interest rate on my card is 12.95%. If I am willing to commit to making monthly payments of $100, then how long will it take for me to pay off my credit card?
- You are currently investing your money in a bank account which has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money? Identify the following variables to help solve problem: m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FVUse 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?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?
