SIMPLE AND COMPOUND INTEREST CASE STUDY Assuming that you graduated on December 31st 2020 from the University of Buraimi and immediately on the 1* of January 2021, you started working with the Royal Oman police in Muscat. Your salary is 600 OMR monthly and you decided to save 300 OMR at the end of every month beginning from the end of January 2021. You put your monthly savings of 300 OMR into a bank Muscat savings account and the bank agree to pay you a simple interest of 10% per annum. You made this savings for 20 years. At the end of every year you collect your savings together with the simple interest earned in Bank Muscat and take it to Bank Sohar and put it in an account that pays you a compound interest of 10% compounded annually,

SIMPLE AND COMPOUND INTEREST CASE STUDY Assuming that you graduated on December 31st 2020 from the University of Buraimi and immediately on the 1* of January 2021, you started working with the Royal Oman police in Muscat. Your salary is 600 OMR monthly and you decided to save 300 OMR at the end of every month beginning from the end of January 2021. You put your monthly savings of 300 OMR into a bank Muscat savings account and the bank agree to pay you a simple interest of 10% per annum. You made this savings for 20 years. At the end of every year you collect your savings together with the simple interest earned in Bank Muscat and take it to Bank Sohar and put it in an account that pays you a compound interest of 10% compounded annually,

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 4MC: Refer to the present value table information on the previous page. What amount should Brett have in...

See similar textbooks

Similar questions

b) Starting from 1* June 2021 with a fresh bank account, Ah Guan save RM320.00 into the bank account every month. A fixed interest of 0.8% is given on the last day of every month. Determine the date (the last day of a month after the interest is given) where he will be able to purchase a smartphone worth RM3126.00 *display your final answer as: [last day of the month] / month / year
ASSESSMENT WRITTEN WORKS Answer the following problems. Show your complete solutions. 1. How much interest would your money earn if you deposited PHP 25, 000. 00 at a simple rate of 3% given the actual date from June 6, 2020 to March 25, 2021. 2. During this time of pandemic, many lending institutions offer a loan package to wage earners. Suppose loan company ABC offers you to borrow money amounting to PHP 50, 000 and payable in 4 years at a simple interest rate of 3% per annum, while loan company XYZ offers a 3% compounded annually. What loan company will you borrow money, then justify why you decide to choose to make loan with that particular loan company.
You, as a University of Bahrain Business School student, plan to make a series of deposits in an interest-bearing account at National Bank of Bahrain (NBB) for thefuture. You will deposit at the end of each year, BHD 55,692, BHD 55,860, BHD 41,636, BHD 29,398 and BHD 57,276 respectively. If the interest rate is 6%, howmuch will you have after 5 years?
Suppose you want to have $600,000 for retirement in 25 years. Your account earns 4% interest. How muc would you need to deposit in the account each month? Submit Question /course/showcalendar.php?cid=179278 Search
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 borrow money from your parents for college tuition on January 1, 2019. Your parents require four annual payments of $30,000 each, with the first payment due on January 1, 2023. They are charging you 5% annual interest. What is the cost of college tuition? (Use spreadsheet software or a financial calculator to calculate your answer. Round intermediary calculations to two decimal places and round your final answer to the nearest dollar.) Question content area bottom Part 1 A$91,894 B.$111,697 C.$120,000 D.$88,475
You are planning on enrolling in the Master of Finance in 4 years time and will be required to pay $45,000 in fees upfront at enrolment. If you can earn 5.4% p.a. on your money, how much would you need to deposit into a savings account today in order for you to have enough money to pay your fees? [Round to the nearest dollar] Select one: a. $45,282 b. $34,595 c. $36,463 d. $41,514
You are interested in saving for a trip when you graduate in three years. You can save $75 each of the next 36 months and earn 2.75% interest on your money. How much money would you have in your savings account in 36 months for your trip? ( Please reference the loan infromation in the "Task 5 Data " cells as the argument for your functions
Clear my chOice Corry has an income of $80,000 that he is willing to spend over a year. If his bank account's interest rate is 3.05% and the cost associated for him to visit the bank is $5.00. What is Corry's average money holding? O a. $488.00 O b. $2,560.74 O c. $5,000.00 O d. $16.00 Previous page O Type here to search
Every year, on 1st January, starting in 2020 and ending in 2049 (so 30 payments), you deposit $1,000 into a bank account. What rate of return would you need to earn on the account so that on 31st December 2049, just after that year's interest was paid into the account, you had $50,000 in the account?
Suppose you receive $500 in graduation money. You decide to put it into an account paying 5%. If you deposit $175 into that same account every month for 7 years, how much money will you have at the end? $14,700.00 B $15,200.00 $16,195.49 $18,266.53 (E) $25,482.80
You decided to take a study abroad for the Spring 2023 semester. You decided to save $200 each month from July 2022 to December 2022 (6 months). You can deposit the funds in a bank account at the beginning of each month. The fund is expected to earn 7% per year. Under these conditions, how much will you have at the end of December 2022?