8. Chapter MC, Section .05, Problem 074 You deposit $825 today in a savings account that...

Question

Question

Answer 1

Answer #1

This question requires application of basic time value of money function, according to which FV = PV * (1 + r) where FV is F

FV = $825 * (1 + 6%)²⁵

FV = $825 * 4.2919

FV = $3,540.79

Add a comment

Answer 2

Similar Homework Help Questions

3. Chapter MC, Section .05, Problem 044 Your bank account pays an 8% nominal rate of...

3. Chapter MC, Section .05, Problem 044 Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? The periode rate of interests and the effective rate of interest is also b. The periodic rate of interest is 4% and the effective rate of interest is less than 8% O . The periodic rate of interests and the effective rate of interest is greater than Od. The periodic rate...
Suppose you deposit 4859 today in a savings account that earns an annual interest rate of...

Suppose you deposit 4859 today in a savings account that earns an annual interest rate of 4.53% which is compounded annually. Assuming no withdrawals, how much would you have at the end of 8 years?
You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2%...

You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2% nominal interest compounded month y Five years after ur de o the savings account aga changes it interest rate this time e interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate...

8. You deposit $1000 in an account today You will deposit $600 at the end of...

8. You deposit $1000 in an account today You will deposit $600 at the end of each month for the next twelve months and $800 per month for the following twelve months. How much interest will you have earned in two years in the account pays 5.5% compounded monthly?
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next...

8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...
You deposit $1,000 at the end of the year (k = 0) into an account that...

You deposit $1,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate, this time the interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate once more to...

Just 57 QUESTION 56 You deposit$ 100 in a savings account that pays 12%interest compounded annually....

Just 57 QUESTION 56 You deposit$ 100 in a savings account that pays 12%interest compounded annually. How much would you have in your account at the end of 5 years? O$160 $166.16 O $168.41 $172.35 O $176.23 QUESTION 57 In the above question, if the bank pays 12% interest compounded qua erly. How much would you have in your account at the end of 5 years? $165.12 $173.16 $180.61 $181.35 $182.45
QUESTION 48 You deposit $100 in a savings account that pays 10% interest compounded annually. How...

QUESTION 48 You deposit $100 in a savings account that pays 10% interest compounded annually. How much would you have in your account at the end of 7 years? O $180.12 O $182.12 O $194.87 O$198.695 o $201.32
You make a deposit of $927 into a savings account at the end of each year...

You make a deposit of $927 into a savings account at the end of each year for the next 9 years. How much can you withdraw immediately after your last deposit if your savings account pays 7% compounded annually? Enter your answer as follows: 12345 Round your answer. Do not use a dollar sign ("$"), commas() or a decimal point (""

You deposit $1000 in an account today You will deposit $600 at the end of each...

You deposit $1000 in an account today You will deposit $600 at the end of each month for the next twelve months and $800 per month for the following twelve months. How much interest will you have earned in two years in the account pays 5.5% compounded monthly?