A person saves $100 in a bank account at the beginning of each month. The bank offers a return of 12% compounded monthly. a. Determine the total amount saved after 12 months. b. After how many months does the amount saved exceed $2000?
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A person saves $100 in a bank account at the beginning of each month. The bank offers a return of 12% compounded monthly.
a. Determine the total amount saved after 12 months.
b. After how many months does the amount saved exceed $2000?
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- Solve the following problems without using any software, do everything in digital format, explain the formulas, substitutions and result 4. A person today deposits in a bank account the sum of $ 125,000 with a monthly interest rate of 0.75% (9% per year) and plans to withdraw $ 4,000 from the account at the end of each month until the account is zero. For how many months will you be able to make these withdrawals?No Plagirism Please! Note: Enter your answer and show all the steps that you use to solve this problem in the space provided You have a credit card with a balance of $1,367 90 at a 95% APR. You pay $400.00 each month on the due date until the card is paid off. How many months does it take to pay off the card, and what is the total amount paid including interest? Be sure to include in your response the answer to the original question the mathematical steps for solving the problem demonstrating mathematical reasoningMarcus is trying to decide which checking account to open. Bank A's account pays 1.6%, compounded annually. Bank Q's account pays 0.4% compounded quarterly. Which account will produce the highest return? Question 14 options: Bank A Bank Q They are the same Insufficient information provided
- 4. Stan has a bank account that earns him 0.05% each year. He wants to know how much money he will have in 5 years from a deposit made today. Inputs Process Outputs Pseudo Code: 1. Desk CheckYou sell $1 million of microprocessors to one of your customers on account. After opening the boxes that you sent, your customer discovers that many of the microprocessors are damaged, so you offer them a partial refund of 10%. The next day they pay their remaining balance in full. Which is part of the correct journal entry that you should record at the time that the customer makes their payment? DEBIT to Cash of $100,000 CREDIT to Accounts Receivable of $900,000 CREDIT to Accounts Payable of $900,000 CREDIT to Accounts Receivable of $1,000,000Suppose you have saved $216 each month for the last 7 years to make a down payment on a house. The account earned an interest rate of 0.53 percent per month. How much money is in your account? Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. Remember to enter the final answer as a positive number.
- Assume that your team is in business and you must borrow $6,000 cash for short-term needs. You have been shopping banks for a loan, and you have the following two options. A. Sign a $6,000, 90-day, 10% interest-bearing note dated June 1. B. Sign a $6,000, 120-day, 8% interest-bearing note dated June 1. Required 1. Discuss these two options and determine the better choice. Ensure that all teammates concur with the decision and understand the rationale. 2. Each member of the team is to prepare one of the following journal entries. a. Option A—at date of issuance. b. Option B—at date of issuance. c. Option A—at maturity date. d. Option B—at maturity date. 3. In rotation, each member is to explain to the team the entry he or she prepared in part 2. Ensure that all team members concur with and understand the entries. 4. Assume that the funds are borrowed on December 1 (instead of June 1) and your business operates on a calendar-year reporting period. Each member of the team is to prepare…Find the interest earned on $5,750 deposited into a savings account for 3 1/2 years at an annual interest rate of 4 1/2% a. What formula should be used? b. What are you trying to find and what variable does it represent in the formula? c. Solve the problem showing all of your work (must show all steps!!) d. Interpet your answer using a complete sentence You may use the box below to upoload a picture of your written explanation or type it out in the box. Use the "mountain" button to add pictures.Lokalalo has plenty of customers, who because of the nature and price of the work these customers are typically given a month to pay for the work. At 31 August 2020, Lokalalo has $1,500,000 in accounts receivable. Lokalalo anticipates that 10% of their customers will default and not pay at all. You are a student studying BUS 114 and have been approached by Paulo Jr. the managing director to answer his following questions. What value will the accounts receivable (debtors) be recorded for in the balance sheet on 31 August and why?
- If you have $10,000 that you want to save for 3 years, which of the following banks would you choose to save the money? Bank A pays 6% per year Bank B pays 3% every six months Bank C pays 9% every 18 months per month Bank D pays 0.4% Show calculation steps and explain your decision. ● ● ●2. For each action, write YES or NO for whether it will likely decrease your credit score: a. You request a copy of your credit report b. You open 5 new credit cards in one month c. You are 3 months late paying your student loan bill d. You lose your job, & it takes 4 months to find a new oneSuppose that you borrow a loan of amount P from a bank at the end of month 3 and make the monthly deposits to the bank as in the cash flow diagram below. In the following cash flow diagram A7=A8=A9=1000, and starting with A10, deposits start decreasing in the amount of 40. However, due to a cash problem, you miss a payment at month 12 but continue with your original payment plan thereafter (that is, A10=960, A11=920, A12=0, A13=840 etc). With these payments, your dept to the bank will be 0 at the end of month 20. Assuming that the interest rate is 12% compounded monthly. 1-Find out the initial loan amount P. 2-Find the total interest paid to the bank