I need help with finance homework asap please! Assume that today you made an initial deposit in the amount of $16,000 into a savings account that pays 4.25% simple interest annually. Assuming no withdrawals or additional deposits, what will be the balance of this account in 10 years?

I need help with finance homework asap please! Assume that today you made an initial deposit in the amount of $16,000 into a savings account that pays 4.25% simple interest annually. Assuming no withdrawals or additional deposits, what will be the balance of this account in 10 years?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

See similar textbooks

Related questions

Q: Suppose that you decide to buy a car for $28,635, including taxes and license fees. You saved $7000…

A: concept. formula to find monthly payment is where , pmt = monthly payment r = interest rate t =…

Q: PROBLEM: what is the present equivalent value of BP's proposed payment schedule? GIVEN: F₁ = $3…

A: Present equivalent value is a concept of time value of money and it helps in determining the current…

Q: Your small startup wants to take out a loan for 5 years for a piece of equipment. The bank offers 6%…

A: Payment per period refers to the time which is used for calculating the wages that are earned and…

Q: Tem S. Your company is AA-rated by a credit-rating agency, and must borrow money according to the…

A: Projects should be accepted when expected return is greater than interest on money borrowed In the…

Q: 10._____ markets and ______ markets are classifications of financial markets. Spot; future. Money;…

A: Financial markets: Any marketplace where securities are traded is referred to as a financial market,…

Q: This question assumes the standard mean-variance utility function. A pension scheme offers investors…

A: The choice of an investment by an investor is a function of his / her utility function, which in…

Q: Some investors use the Sharpe ratio as a way of comparing the benefits of owning shares of stock in…

A: Date APPLE TESLA GM 01-10-2020 0.85% 4.46% 2.67% 02-10-2020 -3.23% -7.38% 0.26% 05-10-2020…

Q: Sinclair Manufacturing and Boswell Brothers Incorporated are both involved in the production of…

A: Degree of Combined leverage is used to calculate the optimum capital structure of the firm by…

Q: Which of the following is essentially unsecured? A• Certificate deposits B• Treasury bills C•…

A: Sources of Short term funds: Trade credit Working capital loan Issuing commercial papers 3 Months…

Q: Solve as soon as possible.

A: The concept of the time value of money states that money has an interest-earning capacity because of…

Q: Net cost of investment is 100,000. Profitability index is 1.3 while cost of capital is 10%. Useful…

A: The profitability index is a measure that is used to evaluate the profitability of investment. It…

Q: Over the next year, the stock market will either be a bull market or a bear market. The probability…

A: The Sharpe ratio is used by investors to measure a company’s performance by calculating its…

Q: A group of friends decided to save money so they can travel out of the country after 5 years. The…

Q: LTD company issued ten-year bond two years ago with a coupon interest of 13% paid every six-month,…

A: Given: Particulars Amount Years 10 Years completed 2 Coupon rate 13% Face value (FV)…

Q: If you as a business owner know that your bank will provide financing for a project and that the…

A: Capital investments is the investment for the long term and assets involved in capital investment…

Q: Andrew deposits $1102.32 each quarter into an annuity account for his child's college fund in order…

A: Amount Deposited = Deposit amount per quarter * 4 quarters * Number of years =1,102.32 * 4 quarters…

Q: Barney and Alyson agree on the price calculated above. Ignoring tax and any other expenses, what is…

A: Given: Purchase price = $984.31767830979 Payments received = $37 Number of payments = 2 Sale value =…

Q: Alexa needs $8,600 worth of new equipment for his shop. He can borrow this money at a discount rate…

A: Maturity Value At the time of maturity, the total amount paid to the investor is known as the…

Q: How much must be deposited at 12% each year beginning on January 1, year 1, in order to accumulate…

A: Future value The method that helps to calculate the future worth of an investment made today is…

Q: Use the 2020 FICA Tax Rates to calculate the social security tax for a self-employed individual with…

A: Social Security Tax is paid on gross income. Social Security is a federal program that pays…

Q: Explain the composition and elements of a financial environment and how they interrelate with one…

A: A financial environment consists of banks, insurance companies, stock exchange, pension funds etc.…

Q: 14. Mr. Reyes borrows P600,000 at 12% compounded annually. agreeing to repay the loan in 15 equal…

A: A loan is an agreement where a lump sum amount is forwarded by one party in exchange for periodic…

Q: Two months ago, Thomasian Engineer TEH P5,000,000.00 in his UST Security Bank (UST Account. Last…

A: Future value of the amount depends on the amount deposited and amount of compounding interest being…

Q: Flora plc is a largo listed company which needs to raise new equity finance. It has decided to make…

A: Equity finance: Equity finance is issued by the companies in the form of shares to the investors.…

Q: Calculate the future value of $8,000 in a. Four years at an interest rate of 8% per year. b. Eight…

A: As per Bartleby Honor Code, when a question with multiple sub-parts is asked, the expert is required…

Q: You want to endow a scholarship that will pay $6,000 per year forever, starting one year from now.…

A: Annual payment (C) = $6000 Discount rate (r) = 0.07 or 7% in first case Amount need to donate today…

Q: You are planning to invest $6,000 in an account earning 10% per year for retirement. a. If you put…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: A piece of machinery can be bought for Php 10,000.00 cash, or for Php2,000.00 down and payments of…

A: Cash price or present Value of machinery is Php 10,000 Down payment is Php 2,000 Payments per year…

Q: Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter that…

A: Initial deposit (I) = P500,000.00 Annual interest rate = 0.08 Monthly period (n) = 14 months Value…

Q: Consider each of the following deposit cash flow series. What will the final balance be (e.g.,…

A: Interest Rate = 10% Time Period = 5 Years

Q: You are using the CAPM to calculate a fair return for Stardust common stock. The shares have a…

A: Capital Asset Pricing Model helps in determining the fair value of the stock considering its…

Q: oncito deposited P15,000.00 today and he deposited the same equal amount each month for the next 9…

A: The future value of the amount includes the amount being deposited and amount of interest being…

Q: On October 1, 2020 John's Barber Shop borrowed $14,000 at 8% interest, with principal and interest…

A: Interest will be booked on proportionate basis, which means that the interest shall be booked for…

Q: If the initial margin is $5,000, the maintenance margin is $3,500 and your balance is $4,000, how…

A: Given, Initial margin = $5,000. Maintenance margin = $3,500. Balance = $4,000.

Q: 15. M purchased a small lot in a subdivision, paying P200.000 down and promising to pay P15.000…

A: Quarterly Payment "PMT" is of P15,000 Down Payment is P200,000 Time period is 10 years Total number…

Q: Question 11. Suppose that $14.000 is deposited for six years at 3 % APR. Calculate the interest…

A: Principal $ 14000 Interest = 3% Compounded Quartley

Q: The date is January 14, 2019. Muhammad can buy T-bill A with a face value of $43,000 maturing on…

A: Tbill A Tbill B Purchase Date 14 January 2019 14 January 2019 Maturity Date 08 March 2019 26…

Q: TWO PARTNERS ARE STARTING A WEDDING PLANNING BUSINESS. THE TOTAL INVESTMENT IS $45,000. THEIR…

A: Total Investment is $45000 Ratio of Contribution is 4:5 To Find: Contribution of each investor

Q: Consider a mutual fund with $200 million in assets at the start of the year and with 10 million…

A: Total Assets at the Start of the Year = $200 Millions Number of Shares Outstanding = $10 Millions…

Q: Here's what you have to turn in: 1) Your spreadsheet or calculations. 2) Net Present Value of…

A: Net Present Value: It is a financial metric used in capital budgeting to determine the net worth of…

Q: Need help with finance homework. 4 Assume that today you invested $120,000 in an investment that…

A: Rate of return earned depends on the how much is earned above the initial investment considering the…

Q: An investment has the following cash flow profile. For each value of MARR below, what is the minimum…

A: MARR is the minimum acceptable rate of return of the project. It is used to compare the projects…

Q: Using the information in the tables above, please calculate the current market conversion price and…

A: Convertible bonds are bonds that has the pay coupons and can be converted to equity. Only if the…

Q: Suppose you bought a 7 percent annual coupon, a 20-year bond last year when it was first issued. You…

A: A bond is a debt instrument that a company offers to raise capital. It provides the company with the…

Q: In other words, if you borrow $100, you must pay back $117.55 two weeks later. If you can’t pay…

A: Characteristics of a payday loan are known. We have to find the APR and EAR of the loan. We have to…

Q: TFC (Totally Fake Company) asks their bank what the interest rate would be on a $3 million dollar…

A: Interest Rate on $3 million line of credit is 6.375%, Interest Rate on $150 million line of credit…

Q: Walter deposits a fixed quarterly amount into an annuity account for his child's college fund. He…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: You deposit $1.2 milion into vour account to cover expenses in the next 12 vears. The account earns…

A: Amount saved for retirement and the annual supported earnings: The amount saved for retirement can…

Q: You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com…

A: To calculate the weight of any asset in a minimum variance portfolio we will use the below formula…

Q: A gravel mining operation will use a standard loan to purchase a $78,756 crusher. The nominal annual…

A: Amount of Loan is $78,756 Interest rate compounded Quarterly is 11.2% Time period is 2 years To…

Question

100%

7) I need help with finance homework asap please!

Assume that today you made an initial deposit in the amount of $16,000 into a savings account that pays 4.25% simple interest annually. Assuming no withdrawals or additional deposits, what will be the balance of this account in 10 years?

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Correct answer

VIEW

Meaning:-

VIEW

Explanation

VIEW

Step by step

Solved in 3 steps

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

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?
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
Suppose you want to have $400,000 for retirement in 10 years. Your account earns 9% interest. Feel free to use the Online Basic Financial Calculator a) How much would you need to deposit in the account each month? S b) How much interest will you earn? S
Suppose you want to have $400,000 for retirement in 25 years. Your account earns 5% interest. Feel free to use the Online Basic Financial Calculator a) How much would you need to deposit in the account each month? es b) How much interest will you earn? $
Today you are opening a savings account and depositing an initial $5,000 into it. You plan to deposit $6,500 into the account two years from today and deposit another $8,000 four years from today. How much will you have in your account five years from today if you earn an 11 percent rate of return? A) $25,314.60 B) $26,194.89 C) $32,858.63 D) $29,602.37 (Please try to explain by using a Financial Calculator)
27. You hope to accumulate an account balance of $20,000 in 4 years by making a single deposit today. If the account earns a 5% annual rate of return, you will need to deposit into the I account today.
Please help me solve this. 7. Assume that today you made an initial deposit in the amount of $16,000 into a savings account that pays 4.25% simple interest annually. Assuming no withdrawals or additional deposits, what will be the balance of this account in 10 years?
Suppose you currently have $4,800 in your savings account, and your bank pays interest at a rate of 0.47% per month. If you make no further deposits or withdrawals, how much will you have in the account in 6 years? In 6 years' time, you will have $________ in the account.
Suppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest credited to the account at the end of each year. Assuming that no withdrawals are made, complete the following: a. Find the balance in the account after 5 years. b. Find the balance of the account after 9 years and 10 months.
Suppose that you opened a savings account on January 1st, 2010, and made a deposit of $1000. On January 1st, 2011, you began depositing $100 into the account at the end of each month. If the bank pays 2% interest compounded monthly, how much money will be in the account on January 1st, 2022?
Suppose that your parents decide to make annual deposits into a savings account, with the first deposit being made on your fifth birthday and the last deposit being made on the 15th birthday. Then, starting on your 18th birthday, the withdrawals as shown will be made. If the effective annual interest rate is 8% during this period of time, what are the annual deposits in years 5 through 15? $3,200 $2,800 $2,400 $2,000 i - 8%/yr 7 8 9 10 11 12 13 14 Years 5th Birthday 6 15 16 17 18 19 20 21 A = ?
1. You deposit GHS10,000 today into an account paying 6% annual interest and leave it on deposit for exactly eight years. Required: How much will be the amount in the account at the end of eight years if interest is compounded annually? 2. Imagine you are a professional personal finance planner. One of your clients ask you the following question. Use time value of money technique to develop appropriate responses in each question. I borrowed GHS75,000, am required to repay it in six equal (annual) end of year instalments of GHS3,344 and want to know what interest rate I am paying.