Table 1 shows deposit into saving account with rate of return 10% per year. Determine the future value at year 20. Table 1: Deposit Money into Saving Account Information | 1 2,000 2 2,000 Year 3 2,000 Deposit, RM per year 800 1,800 1,600 1,400

Table 1 shows deposit into saving account with rate of return 10% per year. Determine the future value at year 20. Table 1: Deposit Money into Saving Account Information | 1 2,000 2 2,000 Year 3 2,000 Deposit, RM per year 800 1,800 1,600 1,400

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 2MC

See similar textbooks

Related questions

Q: The amount of money that needs to be deposited into an account to reach some future goal is called…

A: The present value is the current value of an amount to be received in the future. It is calculated…

Q: client deposits $5 million in a savings account that pays 5 percent per year compounded quarterly.…

A: The given problem can be solved using FV function in excel. FV function computes amount value in…

Q: 1. You deposit NOK 250,000 in a savings account. The bank offers 0.25% nominal annual interest rate.…

A: Future Value(FV) is value of current amount at future point of time. FV is computed by compounding…

Q: Given below are the future value factors for 1 at 6% for one to five periods. Interest is compounded…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: You deposit $10,000 in an account that pays 4.5% interest compounded quarterly. Find the future…

Q: "If a single deposit of $500,000 is made today, earning 8% interest, compounded QUARTERLY, how much…

A: In the given question, $ 500,000 are invested at 8% compounded quarterly for 10 years. Since…

Q: What amount must be invested now in savings account earnings 9% compounded quarterly to accumulate a…

A: The company would be considering the present value or future value in the case when the investment…

Q: A person opens a bank account with a deposit of $150 what is the future value of this amount after 3…

A: In the Given Question we are required to calculate the future value of $150 deposited today for 3…

Q: With an interest rate of 6.5% p.a, compounded monthly, (i) Calculate the equivalent value of all…

A: Here we will have to use the concept of time value of money and determine the values at given points…

Q: What is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand…

A: The value received by an individual today is of more worth than that of receiving the exact amount…

Q: What deposit made at the beginning of each month will accumulate to P120,000 at 8% compounded…

A: Future Value = P 120,000 Interest Rate = 8% compounded semi-annually Time Period = 10 Years

Q: If you deposit RM25,000 in an account earning 16% with quarterly compounding, how much would you…

A: Amount of Deposit = RM 25,000 Interest Rate = 16% per annum Quartery interest Rate(r) = 16%/4 = 4%…

Q: If you deposit RM35,000 in an account earning 18% with monthly compounding, how much would you have…

A: Using the future value function

Q: Find the amount the bank will produce if $2100 is invested for 5 years, compounded daily at 6.48%

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: 1. An investment account was opened with an initial deposit of $9,600 and earns 7.4% interest,…

Q: 2. Using the formula which is attached below, calculate the Future Value of disposable amount of…

A: With the help of above formulae, the future value can be calculated with the help of following…

Q: Consider the following schedule: number of years 10; annual interest rate 6% Annual withdrawal of…

A: Given: Year With drawl Deposit 1 -$500 $10,000 2 -$500 3 -$500 4 -$500 5 -$500…

Q: What is the total amount of money to be paid back at the end of 3 years for a loan of 200 000 lira…

A: Using excel FV function

Q: a) If you deposit $10 000 today in a bank statement paying 10.38%, how much will you…

A: Since you have posted multiple questions, we will answer the first one for you. If you want a…

Q: A bank loan of P6,000,000 at 10% pa, is to be paid in 10 equal payments, the first of which to be…

A: Loan = 6,000,000 Interest rate = 10% p.a. Number of annual payments = 10 First loan payment starts…

Q: Use the following time value of money tables for Questions 1-4. Round answers to the nearest dollar.…

A: Given data: Cash withdrawals semiannually = $1,000 Cumulative PV factor at 3% for 6 periods =…

Q: Assuming an interest rate of 10%, how much (rounded to nearest dollar) will need to be deposited in…

A: Annual deposit = Accumulated saving at the end of 8th year / Future value factor at 10%, 8 years

Q: How much money deposited at the end of each year in a savings account that pays 9 % per year ,…

A: An annuity is a series of regular payments made at regular intervals. It earns interest as and when…

Q: Calculating Annuity Cash Flows For each of the following annuities, calculate the annuity payment.…

A: Annuity cash flows is a cash flow which leads to a same increase or decrease in the cash flows of a…

Q: n the information given int he following case, determine the number of years that the given oridinay…

A: Initial amount (PV) = $ 26,800 Annual cash flow (P) = 6,561 Rate of return (r) = 6% Number of year =…

Q: A sum of 2500 TL is deposited in a bank and cashed back at the end of 3 year as 5000 TL. Find the…

A: Deposited amount (PV)= 2500 TL Cashed amount (FV)= 5000 TL Time period= 3 years Monthly and annual…

Q: How much money must be put into a bank account yielding 3.5% (compounded annually) in order to have…

A: Money that must be put into a bank account yielding 3.5% (compounded annually) in order to have…

Q: If the rate of earnings is 12% and the cash to be received in two years is $20,000, determine the…

A: Present value amount = Cash to be received in two years x present value of $1 at compound interest…

Q: Use Table 12-1 of your text to find the future value of $200 deposited at the BEGINNING of every…

A: Annual deposit (P) = $ 200 Number of annual deposits (n) = 13 Annual interest rate (r) = 8%

Q: Intro You expect to receive two cash flows: $31,000 paid in 5 years and $46,500 paid in 10 years.…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: A person deposits $150 per month into a savings account for 2 years. If $75 is withdrawn in months…

A: When there is no iterperiod interest, which means the interest will be paid for balance at the start…

Q: Match the correct answer for the following questions v The present worth of $400 in year 1 and…

A: 1) First year amount (A1) = $400 Increase of $30 every year till year 5 r = 12%

Q: Need answers ASAP... If P100 is deposited in a savings account that pays 6% annual interest, what…

A: First of all, to find the future value, we will use the following formula: FV = PV * (1+r)n Where:…

Q: You plan to withdraw the amounts given below over the next five years from a savings account that…

A: GIVEN, R=9% YEAR CASHFLOW 1 0 2 24000 3 14000 4 26000 5.00 42000

Q: a. How much money will you have saved after 2 years? b. How much will be owed after 2 years?

A: Information Provided: Present value = $2000 Interest rate = 7.5% compounded semi-annually

Q: t lump sum of money must be deposited into a bank account at the present time so that $500 per month…

A: Future withdrawal monthly depends on the monthly interest rate and period of withdrawal for which…

Q: Give me right solution according to the question options also given A person deposits $150 per…

A: The future amount is the accumulated value of the present value at a certain rate of interest. The…

Q: Calculate the future worth of 20 annual $4,000 deposits in a savings accountthat earns 8% compounded…

A: The future value of periodic investment consist of principal payments and interest accumulated on…

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Present Value represents the present worth of the investment. This can be computed by using Excel…

Q: What is the future value of a stream of $800 cash receipts, each to be received at the beginning of…

A: Given data; payment amount = $800 interest rate = 10% number of years = 4

Q: Find the P and F values of a certain transaction that has an interest of 12% per year and rate of…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: If you deposited $100 now (n= 0) and $200 two years from now (n=2) in a savings account that pays…

A: The future value of deposited can be derived by multiplying the future value factor with amount…

Q: Find the compound amount and the interest if: Php25 350.00 is deposited in a savings account at 7%…

A: The future value is the future value of the amount that has to be paid or received in the future…

Q: Answer the following questions: 1) Consider the following cash flow: You will receive $500 at the…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

Table 1 shows deposit into saving account with rate of return 10% per year.
Determine the future value at year 20.
Table 1: Deposit Money into Saving Account Information
Year
1
2
2,000
3
5
6.
Deposit, RM per year
800
2,000
2,000
1,800
1,600
1,400

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

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 2 images

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

Question: Use the following information to answer the next two questions: You deposited the following stream of cash flow at the end of the year: Year deposit rate of interest 1 5000 8% 4 4000 8.5% 6 7000 10% What will be the total amount in your account at the end of 6 years? 2. What is the present value of your deposit?
If you had deposited $1 in a bank account at an annual rate of 3.5% at the beginning of 1905, how much would you have in the account at the end of 2019, assuming the interest rate remained constant? Group of answer choices $28.57 $52.26 $1,464.47 $119.03
When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 O C. $586 OD. $622 I
1. For each of the following cases, calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate specified over the given period. Case Single Cash Flows ($) Interest Rate (%) Deposit Period (years) A $100 3.5% 30 B $5,000 10% 25 C $12,500 12% 7 D $23,200 14% 10
Consider each of the following deposit cash flow series. What will the final balance be (future equivalent value) after the final deposit? Assume the account earns 9% interest compounded annually *Use excel*
The equation, A = P(1 + 0.037t), represents the amount of money earned on a savings account with 3.7% annual simple interest. If the amount after 5 years is equal to $1,422, what is the amount of the principal investment? $1,200 $1,422 $274.25 $294.86
Find the P and F values of a certain transaction that has an interest of 12% per year and rate of 10% per payment. Draw the cash flow diagram. 1st year-8th year (respectively): P0, P1000, P1100, P1210, P1331, P1464.10, no payment for 7th year
1. Future Value For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today and held until the end of the deposit period if the interest is compounded annually at the rate specified. Part Single CF Interest Rate Deposit Period (Years) PV I/Y N A $900 3% B $1200 6% C $16,000 9% D $40,000 10% 6 8 12 15
What is the future value of a stream of $800 cash receipts, each to be received at the end of the next four years, with 10% annual compounding interest rate? Group of answer choices a. $4,084.08 b. $3,712.80c. $2,789.48 d. $2,535.89
Future values For the case shown in the following table, calculate the future value of the single cash flow deposited today and held until the end of the deposit period if the interest is compounded annually at the rate specified. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) The future value is $. (Round to the nearest cent.) Single cash flow $5,500 Interest rate 9% Deposit period (years) 14
Illustration 1 Calculate the future value of the following cash flow if it is invested @ 8% interest p.a. At the end of each year Amount Deposited 1 2,000 4,000 3. 6,000 4 8,000
Q2. Deposits are to be made to an account as indicated in the table below which bears interest at the rate of 10% compounded annually. How much will there be in the account at the end of the sixth year? END OF YEAR DEPOSIT 1 2 500 3 1000 4 1500 2000 Answer: F6 = 6,078.05Php %3D