You can earn $41 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless of the length of the investment, how much interest will you earn on a $1,000 deposit for: a. 8 months. b. 1 year. c. 1.3 years. a. 8-months. For a 8-month, $1,000 deposit you will earn $ (Round to the nearest cent).
Q: Standard Chartered Bank Berhad pays 7 percent annual interest on its fixed deposit account, whereas…
A: Deposit = 5000 Standard Chartered Bank Annual Rate = 7% Time Period (N) = 8 years UOB Bank…
Q: Your friend plans to invest $1,000 per month into an account expected to have an effective annual…
A: Here, EAR is 6.2% Monthly payment (PMT) is $1,000 Required Amount (FV) is $100,000
Q: Suppose an individual makes an initial investment of $2,200 in an account that earns 7.8%,…
A: An individual investor made deposits initially and continues to invest on monthly basis for 12…
Q: Ms. Aay is considering to deposit $500 every six months, and would receive interest at an annual…
A: Semi annual deposit (P) = $ 500 Annual interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%…
Q: You borrow $10,000 from a bank for three years at an annual interest rate, or annual percentage rate…
A: The rate that is charged at an annual basis on the borrowing funds as well as earned annually on…
Q: You plan to put some money into an account so that for the next 4 years you can withdraw $912 from…
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: Suppose you currently have $20,000 and plan to purchase a 8-year certificate of deposit (CD) that…
A: Using the Future value and NPER function in excel
Q: You can earn $59 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless…
A: Effective Annual Rate: It refers to the annual real rate taking into account compounding effects.…
Q: Assume that 1 year from now you plan to deposit €1,000 in a savings account that pays a rate of 8…
A: If the bank compounds interest annually, amount in the account 4 years from now will be =€1,000×FVF…
Q: If you invest $7,500 in an account paying 8.35% compounded continuously, how much will be in the…
A: In the simple interest, we calculate the interest amount which we will receive after the specific…
Q: a. You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being…
A: Using excel FV function
Q: You plan to deposit $4,900 at the end of each of the next 15 years into an account paying 11.3…
A: Solution- Given that P=$4900 r=11.3% n=15 years Future value of Annuity- =P * [ (1+r)^n -1] /r
Q: Assume you deposit $5,200 at the end of each year into an account paying 10 percent interest. a.…
A: deposit made at the end of each year = $5200 interest rate annum = 10%…
Q: Ms. Aay is considering to deposit $600 every six months, and would receive interest at an annual…
A: In the given question, semi-annual deposits of $ 600 are made for next 5 years, wherein first…
Q: a) How much is in the account after the last deposit is made? (b) How much was deposited (c) What…
A: In order to find the following questions, one needs to use excel and apple functions like PMT, FV…
Q: , how much interest will you earn on a $1,000 deposit for: a. 8 months.
A: Compound interest is computed by multiplying the original principal amount by one plus the yearly…
Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…
A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…
Q: You will deposit $2,000 per year for the next 10 years. Then, you will start drawing money out of…
A: Future value is the value of the present cash flows in future. Investor will deposit same equal…
Q: You plan to make five deposits of $1,000 each, one every 6 months, with the first payment being made…
A: Hi there, Thanks for posting the question. But, per Q&A honor code, The solution for the first…
Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…
A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…
Q: You can earn $42 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless…
A: Compound interest is computed by multiplying the original principal amount by one plus the yearly…
Q: An investment promises to pay into an account that pays you 6 percent annually, $151 per month for…
A: In this we have to calculate future value FACTOR and get future value.
Q: Assume you put $600 per month into a retirement account for 14 years, and the account has an APR of…
A: Given: Particulars Amount Payment(PMT) $600 Years 14 Interest rate 3.02%
Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…
A: In this question, first of all, we have to calculate the future value of the annuity in the next 20…
Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…
A: For this first find out future value factor annuity and find future value and than find value at end…
Q: You have taken out a home loan of $400,000 at an interest rate of 3.6% per annum compounded monthly.…
A: A loan is a debt amount borrowed by one person from another person. A loan payable in equivalent…
Q: You plan to make 15 annual deposits in a saving account that pays 6% interest compounded annually.…
A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…
Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…
A: The loan amount is $26,100 The monthly payment is $989 The total finance charge is $9,504 The loan…
Q: An investment promises to pay into an account that pays you 6 percent annually, $150 per month for…
A: The question is based on the concept of Annuity
Q: You agree to make 24 deposits of $500 at the beginning of each month into a bank account. At the end…
A: Data given:: No. of deposits = 24 Amount deposited at the beginning of each month = $500 FV= $12800…
Q: Suppose an individual makes an initial investment of $2,000 in an account that earns 6%, compounded…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: if you deposit 55,650 in a bank at 12% interest for a period of ten years what will be the feuture…
A: Formula: Future value = Present value*(1+rate)^years
Q: Suppose an individual makes an initial investment of $2,600 in an account that earns 7.8%,…
A: The time value of money refers to the concept that states that the money present today is more…
Q: Person A deposits $ 1,000 in a bank account at the beginning of each year for 15 years. If the…
A: Future Value(FV) is worth of current amount at future point that is computed by compounding current…
Q: Your bank is offering you an account that will pay 10% interest in total for a two-year deposit.…
A: Equivalent discount rate is referred as the real return on a saving account which computes interest…
Q: If you want to earn 7% annual simple interest on an investment, how much should you pay for a note…
A: We need to calculate the principle value here
Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…
A: 1.Amount of Loan pay off is $7975 2.Amount of Finance Charges rebate is $2882 Calculations :-…
Q: Mr. Gordon plans to invest $600 at the end of each month in an account that pays 12%, compounded…
A: a) An ordinary annuity may be a set of identical installments paid over an indicated sum of the time…
Q: Assume you have secured a loan of $10,000 from a bank which will be paid in one year. The fin bank…
A: A loan is an agreement where an amount is forwarded with the promise to pay it back along with some…
Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…
A: A loan is a sort of debt that is taken on by an individual or another institution. The lender, which…
Q: A 12-month certificate of deposit at Middlesex Savings Bank is advertising a 1.2% annual percentage…
A: The future value is the future worth of the amount that will be paid or received at the end of the…
Q: You have taken out a home loan of $400,000 at an interest rate of 3.6% per annum compounded monthly.…
A: Given question: Amount of loan : $400,000 Rate of interest : 3.6% per annum Number of payments :…
Q: We assume that we have a secured a loan of $10,000 from a bank which will be paid in one year. The…
A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…
Q: You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end…
A: given, FV = $220000 r= 12% time line
Q: If you want to earn 15% annual simple interest on an investment, how much should you pay for a note…
A: The question specifies that the maturity value of note receivable due in 10 months from now will be…
Q: Suppose you take out a 36-month installment loan to finance a delivery van for $26,100. The payments…
A: Loan payoff will be the closing balance at the end of 25 months
Q: An investment promises to pay into an account that pays you 6 percent annually, $150 permonth for…
A: In this first we have to calculate future value FACTOR and future value after 22 years and than…
Q: An investment promises to pay into an account that pays you 6% annually, $150 per month for the…
A: In this question, first, we will calculate the future value of annuity after 22 years and then the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.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?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYou put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You can earn $41 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless of the length of the investment, how much interest will you earn on a $1,000 deposit for: a. 8 months. b. 1 year. c. 1.3 years.
- Assume you make a single deposit of $1000 into a savings account that pays interest at 0.5% per month. If you want to know how much the accountwill be worth in 5 years, the only values you can use for i and n area. Effective i per month and n = 60b. Effective i per quarter and n = 30c. Effective i per semiannual period and n = 10d. Either (a) or (c)When you buy a certificate of deposit (CD), you are investing your money in an account that earns interest for a specific period of time. A CD matures when it has been invested for the required amount of time.Assume that you have $3300 to invest in a 3-year CD with an APR of 3.5% compounded daily. When the CD matures, how much interest will you have earned? Round your result to the nearest cent.When you buy a certificate of deposit (CD), you are investing your money in an account that earns interest for a specific period of time. A CD matures when it has been invested for the required amount of time. Assume that you have $2300 to invest in a 5-year CD with an APR of 3% compounded daily. When the CD matures, how much interest will you have earned? Round your result to the nearest cent. $
- You deposit $650 in an account paying 7.8% simple interest. Find the future value of the investment after 3 years. (Round your answer to two decimal places.)Ian deposits $1200 into a savings account that earns 4% per year, simple interest.a) Write an equation to relate the amount of the investment, A, to time, t, in years.b) Graph the function.c) How long will it take, to the nearest month, for the investment to grow to $1500?If you want to earn 3% annual simple interest on an investment, how much should you pay for a note that will be worth $13,500 in 10 months? (Round your answer to two decimal places.)