Homework Answers
Quarterly interest rate = 12%/4 = 3%
We need to calculate the amount of money at end of year 2 (quarter 8). So we do not consider the deposits and withdrawals after quarter 8.
Money at end of year 2 = 1000 x FVIF(3%, 8) + (950 - 600) x FVIF(3%, 7) + 1150 x [FVIF(3%, 6) + FVIF(3%, 5) + FVIF(3%, 4) + FVIF(3%, 3)]
= 1000 x 1.2668** + 350 x 1.2299** + 1150 x (1.1941** + 1.1593** + 1.1255** + 1.0927**)
= 1266.8 + 430.47 + 1150 x 4.5716
= 1697.27 + 5257.34
= 6954.61
Cash flow diagram (First 8 quarters, all numbers in $):
**Using FVIF factor table
Add Answer to:
help please
For the transactions shown below, determine the amount of money in the account at...
help please!! For the transactions shown below, determine the amount of money in the account at...
help please!!
For the transactions shown below, determine the amount of money in the account at the end of year 2 if the interest rate is 12% per year, compounded quarterly. Assume no interperiod compounding. Draw Cash Flow Diagram End of Quarter Amount of Withdrawal S/Quarter 600 Amount of Deposit, S/Quarter 1000 950 1150 1000 1100 2-5 13 2500 21 24 1200
help please An engineer deposited her annual bonus of $10,000 into an account that pays interest...
help please
An engineer deposited her annual bonus of $10,000 into an account that pays interest at 8% per year, compounded semiannually. If she withdrew $1000 in months 2, 11, and 23. (See the table below) and made deposits of $500 in months 5 through 8 and another single deposit of $600 in month 20, what was the total value of the account at the end of 2 years? Assume no interperiod compounding. You must draw the cash flow diagram....
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he r...
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
Determine the amount of money in a savings account at the end of 7 years, given...
Determine the amount of money in a savings account at the end of 7 years, given an initial deposit of $13,500 and a 4% annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. A. Annually: ? B. Semiannually: ? C. Quarterly: ?
Determine the amount of money in a savings account at the end of 10 years, given...
Determine the amount of money in a savings account at the end of 10 years, given an initial deposit of $5,500 and a 12 percent annual interest rate when interest is compounded (a) annually, (b) semiannually, and (c) quarterly. Include financial calculator steps, including the keys pressed on the calculator to solve each step of the question.
Determine the amount of money in a savings account at the end of 10 years, given...
Determine the amount of money in a savings account at the end of 10 years, given an initial deposit of $5,500 and a 12 percent annual interest rate when interest is compounded: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Future Value a. Annually b. Semiannually c. Quarterly
Determine the amount of money in a savings account at the end of 3 years, given...
Determine the amount of money in a savings account at the end of 3 years, given an initial deposit of $4,000 and a 4 percent annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a, annually b. semiannually c. quarterly
6. bu A man is planning to retire in 20 years. He wishes to deposit a...
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
4) If the card's interest rate from problem 3 above is later changed as 3.5% per...
4) If the card's interest rate from problem 3 above is later changed as 3.5% per quarter, find the effective semiannual and annual rates. a) 7.12%, 17.5% b) 7.12%, 14.75% c) 7%, 17.5% d) 7%, 12.5% 5) Pablo wants to help children in need because he's an awesome guy. He will deposit $1000 now, $3000 4 years from now, and $1500 6 years from now. Earning at a rate of 11.7% per year, compounded semiannually, what amount can he donate...
please help solve this problem 4. You and a friend are saving money for a summer...
please help solve this problem
4. You and a friend are saving money for a summer in Europe after you graduate. You have each been depositing $500 each month into an interest bearing account so you can make 4 monthly withdrawals to pay for your trip. This investment account provides an annual interest rate of 5%, compounded monthly. a. Will you have saved enough money for the trip? b. If not, how much will you need to add to your...
help please!!
For the transactions shown below, determine the amount of money in the account at the end of year 2 if the interest rate is 12% per year, compounded quarterly. Assume no interperiod compounding. Draw Cash Flow Diagram End of Quarter Amount of Withdrawal S/Quarter 600 Amount of Deposit, S/Quarter 1000 950 1150 1000 1100 2-5 13 2500 21 24 1200
help please
An engineer deposited her annual bonus of $10,000 into an account that pays interest at 8% per year, compounded semiannually. If she withdrew $1000 in months 2, 11, and 23. (See the table below) and made deposits of $500 in months 5 through 8 and another single deposit of $600 in month 20, what was the total value of the account at the end of 2 years? Assume no interperiod compounding. You must draw the cash flow diagram....
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
Determine the amount of money in a savings account at the end of 10 years, given an initial deposit of $5,500 and a 12 percent annual interest rate when interest is compounded: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Future Value a. Annually b. Semiannually c. Quarterly
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
4) If the card's interest rate from problem 3 above is later changed as 3.5% per quarter, find the effective semiannual and annual rates. a) 7.12%, 17.5% b) 7.12%, 14.75% c) 7%, 17.5% d) 7%, 12.5% 5) Pablo wants to help children in need because he's an awesome guy. He will deposit $1000 now, $3000 4 years from now, and $1500 6 years from now. Earning at a rate of 11.7% per year, compounded semiannually, what amount can he donate...
please help solve this problem
4. You and a friend are saving money for a summer in Europe after you graduate. You have each been depositing $500 each month into an interest bearing account so you can make 4 monthly withdrawals to pay for your trip. This investment account provides an annual interest rate of 5%, compounded monthly. a. Will you have saved enough money for the trip? b. If not, how much will you need to add to your...
Most questions answered within 3 hours.
-
5. Discuss the use of fault tree analysis (FTA) for risk
assessment (maximum one paragraph).
asked 1 hour ago -
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 2 hours ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 3 hours ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 4 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 4 hours ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 6 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 7 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 7 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 7 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 8 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 8 hours ago -
A three-year maturity bond with a 12% annual coupon rate is
currently traded at par $1000...
asked 8 hours ago