Betty DeRose is going to deposit $2,800 into a savings account at the beginning of every six months for the next ten years. Assume the account will earn 20% interest compounded semi-annually. Calculate the amount of interest Betty DeRose will earn over the ten year period.
No credit will be awarded for this question using a means other than these table factors to answer this question.
Homework Answers
Calculation of Future value of Annuity Due:
Since the annuity payments are starting at the beginning of the period, the annuity due/immediate is to be considered.
Future value of Annuity Due = (1+r)*P[((1+r)^n-1)/r]
Where r = rate per period =20% (In given case)
P = periodic payment = $ 2800
n = Number of periods = 10 years*2 = 20 periods
Future value of Annuity due=(1+0.20)*2800[((1+0.20)^20-1)/0.20]
= 1.20*2800(186.688) (As per Future value of Annuity table@20%,20 periods)
= $ 627271.68
Principal amount = $2800* 20 periods = $ 56000
Amount of interest = $ 627271.68- $ 56000 = $ 571271.68
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Betty DeRose is going to deposit $2,800 into a savings account at
the beginning of every...
Betty DeRose is going to deposit $2,800 into a savings account at the beginning of every...
Betty DeRose is going to deposit $2,800 into a savings account at
the beginning of every six months for the next ten years. Assume
the account will earn 20% interest compounded semi-annually.
Calculate the amount of interest Betty DeRose will earn over the
ten year period.
Use the time value of money factors posted in carmen to answer this
question. To access these factors, click modules and then scroll to
week 12. Click on the link labeled present & future...
Betty DeRose is going to deposit $2,800 into a savings account at the beginning of every...
Betty DeRose is going to deposit $2,800 into a savings account at the beginning of every six months for the next ten years. Assume the account will earn 20% interest compounded semi-annually. Calculate the amount of interest Betty DeRose will earn over the ten year period. Use the time value of money factors to answer this question
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Use the time value of money factors posted in carmen to answer this
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factors. No credit will be awarded for this question using a means
other than these table factors to answer this...
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Betty DeRose is going to deposit $2,800 into a savings account at
the beginning of every six months for the next ten years. Assume
the account will earn 20% interest compounded semi-annually.
Calculate the amount of interest Betty DeRose will earn over the
ten year period.
Use the time value of money factors posted in carmen to answer this
question. To access these factors, click modules and then scroll to
week 12. Click on the link labeled present & future...
I'm not sure with my answer
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ABC Company sold the rights to use one of their patented processes
that will result in them receiving cash payments of $20,000 at the
end of every six months for each of the next five years and a lump
sum payment of $4,000 at the end of the sixth year.
Calculate the total present value of these payments if the interest
rate is 12% compounded semi-annually.
No credit will be awarded for this question using a means
other than these...
Assuming an interest rate of 20% compounded semi-annually, calculate
the present value of a $91,900 cash flow that will occur eight years
from now.
No credit will be awarded for this question using a means
other than these table factors to answer this question.
Future Value of a Lump-Sum 15% 1.5209 1.7490 2.0114 20% 1.7280 2.0736 2.4883 Cauw Periods 2% 3 1.0151 | 1.0202 1.0253 1.0304 1.0355 1.0407 1.0459 1.0511 1.0617 1.0777 16 1.0831 17 1.0885 1.0939 1.0994 1.1049 1.1104...
Assuming an interest rate of 20% compounded semi-annually, calculate
the present value of a $91,900 cash flow that will occur eight years
from now.
Use the time value of money factors posted in carmen to answer this
question. To access these factors, click modules and then scroll to
week 12. Click on the link labeled present & future value table
factors. No credit will be awarded for this question using a means
other than these table factors to answer this...
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payments of $25,000 for 20 years with the first payment being due on
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