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- 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?5. You decide to invest $100 into a savings account with an interest rate of 2% annually in2015. The amount of money in your savings account in a given year can be modeled by the following function. P(t)=100(10)^.009 a. Evaluate P(0) and explain what it means in this context. b. Approximately how many years will it take for the amount of money in your bank account to reach $120? c. What year will you have $120 in your savings account?f4. Subject :- Accounting What is the future value in 5 years of a $7,000 investment placed into a bank account today that will pay you 12% interest compounded quarterly? What is the present value of an investment that will pay you $1500/year forever? Use i=9% What is the present value of an investment that will pay you $2500/year forever? Use i=6%
- Q2. You are considering investing $2,000 in a bank term deposit for 5 years. The term deposit will pay quarterly interest of 3% (compounded quarterly). What is the value of the deposit at the end of year 5?不 a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time Financial Goal $? at the end of each year 3% compounded annually 15 years $130,000 Click the icon to view some finance formulas. a. The periodic deposit is $ (Do not round until the final answer. Then round up to the nearest dollar as needed.) this View an example Get more help 4 Clear all Chec3. If you are planning a trip to other place after 3 years. And, if you intend to deposit savings of ETB 1,000 now and expects to deposit another ETB 500 at the End of next year. If the bank pays 5% interest per year compounded annually, how much money can you expect to be available to you at the time of your departure? 4. A ly of ETB SO0.000. at an
- 1. What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4% compound semi-annually? 2. as the Fund manager for bank of Trinidad and Tobago Limited, you are to advise the following two clients based on their respective financial situations a) your best friend has asked to assist him in making the best investment out of the following options. which would you advise him to choose and why Option 1 $12,000 in 5 year's time at 6% interest Option 2 $15,000 in two year's time at 9% Option 3 $15,000 today. no strings attached Option 4 $5,000 each year for 2 years at 7% percent compounded semi- anuallyYou plan to invest $5,000 into an account. If you would like to have $10,000 in 15 years, what rate of return must you earn? Question 5 options: 6.02% 5.24% 4.73% 7.55% 7.11%Jane Smart plans to make the following deposits in an account towards cash purchase of a real estate property. ΕΟΥ 1 3 Deposit $6,000 $20,000 2 $13,000 4 $27,000 cms (a) How much money will the account have immediately after the last deposit if the account earns an interest rate of 8% per year? (b) What is the equivalent uniform annual deposit? 5 $34,000 (a) The amount in the account after the last deposit is $ 111028 (to the nearest dollar). (b) The equivalent uniform annual deposit is $(to the nearest dollar)
- Please answer part A-D and give a short explanation of how you arrived at you answer. A) You want to go to Europe 5 years from now, and you can save $3,300 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 9.1 percent per year. Under these conditions how much would you have just after you make the 5th deposit 5 years from now? B) Your uncle has $300,000 invested at 7.5%, and he now wants to retire. He wants to withdraw $53,750 at the end of each year, starting at the end of this year. For how many years can he make the $53,750 withdrawals and have nothing left at the end? Round to the nearest integer. C) What’s the future value of $1,200 after 5 years if the appropriate interest rate is 10.8 percent, compounded monthly? Round to the nearest integer. D) Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 31.2 percent with…Time value of money practice problems. How would you solve these using a financial calculator? What values would you enter for N, I/YR, PV, PMT, and FV ? *assume coporate bonds pay 2x annually and have a FV on $1000 a) Calculate the FV of depositing $4,000 for each of the next 10 years earning 8%.You are required to two choose from two actions: A1: deposit K1 000 000 in the bank for 1 year at 7 % interest A2: invest K 1 000 000 for 1 year with 50% probability of having K2 500 000 at the end of the year, and 50% probability of losing all the K 1 000 000. Which would you choose and why?