You make a $100,000 investment in a 10 year, 2.50% certificate of deposit. What is the...
You make a $100,000 investment in a 10 year, 2.50% certificate of deposit. What is the total amount of interest you'll earn over 10 years? (Round to the nearest whole dollar)
Homework Answers
Amount invested = $100,000
Interest rate = 2.50%
Period = 10 years
Future value = Amount invested * (1 + Interest
rate)^Period
Future value = $100,000 * 1.0250^10
Future value = $100,000 * 1.28008
Future value = $128,008
Interest earned = Future value - Amount invested
Interest earned = $128,008 - $100,000.00
Interest earned = $28,008
Add Answer to:
You make a $100,000 investment in a 10 year, 2.50% certificate
of deposit. What is the...
A $100,000 investment is made in a US Savings Bond that pays 2.50% per year over...
A $100,000 investment is made in a US Savings Bond that pays 2.50% per year over 10 years. What is the total amount of the investment after 10 years, if compounded semi-annually? (Round to the nearest whole dollar)
You need $25,256 at the end of 8 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year.
You need $25,256 at the end of 8 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. What single payment could be made at the beginning of the first year to achieve this objective? (Do not round intermediate calculations. Round...
Appendix A You invest $3,000 in a certificate of deposit that matures after eight years and...
Appendix A
You invest $3,000 in a certificate of deposit that matures after
eight years and pays 5 percent interest, which is compounded
annually until the certificate matures. Use Appendix A to answer
the questions. Round your answers to the nearest dollar.
How much interest will you earn if the interest is left to
accumulate?
$
How much interest will you earn if the interest is withdrawn
each year?
$
At the end of each year, you plan to deposit $3,100 in a savings account. The...
At the end of each year, you plan to deposit $3,100 in a savings account. The account will earn 7% annual interest, which will be added to the fund balance at year-end. The first deposit will be made at the end of Year 1. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required: 1. Prepare the required journal entry at the end of Year 1. (If no...
You make a $9,000 deposit to an investment account today. The investment earns 7% p.a compounding...
You make a $9,000 deposit to an investment account today. The investment earns 7% p.a compounding monthly for the first 12 months, then it earns 10%p.a compounding monthly for the next 2 years. At the end of the 3 years the balance in the account is (to the nearest whole dollar; don't use $ sign or commas)
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $240,000 per year for the next 30 years (based on family history you th...
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $240,000 per year for the next 30 years (based on family history you think you'll live to age 70 You plan to save for retirement by making 10 equal annual installments from age 30 to age 40 into a fairly risky investment fund that you expect will earn 14% per ar. You will leave...
Samir received $500 as a graduation gift this year and plans to deposit in an investment...
Samir received $500 as a graduation gift this year and plans to deposit in an investment account. If the account pays interest of 6 percent, how much will be in his account in three years? Round your final answer to the nearest whole dollar.
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual...
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual (stated) rate is 4% on the CD and it is compounded quarterly. Rates have increased and you are considering reinvesting in another certificate of deposit. However, if you withdraw the money from the original CD, you suffer a 10% penalty on the entire balance (interest and principal): a. If you make the withdrawal today, how much would you have remaining? (8 Points)
On January 1, you plan to take a trip around the world upon graduation four years...
On January 1, you plan to take a trip around the world upon graduation four years from now. Your grandmother wants to deposit sufficient funds for this trip in an investment account for you. On the basis of a budget, you estimate that the trip currently would cost $17,000. Being the generous and sweet lady she is, your grandmother decided to deposit $4,000 in the fund at the end of each of the next four years, starting on December 31,...
Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit (CD) account...
Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit (CD) account pays 1.5%, while a riskier bond fund pays 8.5% in interest. Scott figures he needs $46,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk? at 1.5% $ at 8.5% Round answers to the nearest dollar. Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit...
You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $240,000 per year for the next 30 years (based on family history you think you'll live to age 70 You plan to save for retirement by making 10 equal annual installments from age 30 to age 40 into a fairly risky investment fund that you expect will earn 14% per ar. You will leave...
3. Two years ago, you invested $5,000 in a four-year certificate of deposit (CD). The annual (stated) rate is 4% on the CD and it is compounded quarterly. Rates have increased and you are considering reinvesting in another certificate of deposit. However, if you withdraw the money from the original CD, you suffer a 10% penalty on the entire balance (interest and principal): a. If you make the withdrawal today, how much would you have remaining? (8 Points)
Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit (CD) account pays 1.5%, while a riskier bond fund pays 8.5% in interest. Scott figures he needs $46,000 a year in interest to live on. How much should he invest in each account to make enough interest while minimizing his risk? at 1.5% $ at 8.5% Round answers to the nearest dollar. Scott just retired, and has $710,000 to invest. A very safe Certificate of Deposit...
Most questions answered within 3 hours.
-
A sock stuck to the side of a clothes-dryer barrel has a
centripetal acceleration of 24...
asked 31 minutes ago -
A perfect gas undergoes an isentropic process such that its
volume doubles. If the ratio of...
asked 51 minutes ago -
list the elements in groups 3A to 6A in the same order as in the
periodic...
asked 1 hour ago -
Estimating effect size. Peng and Chen (2014)
evaluated effect size estimates for various tests. In their...
asked 1 hour ago -
Write a script in MySQL that creates and calls a stored
procedure name test. This procedure...
asked 1 hour ago -
If we test the following: H0: μ = 17
vs. H1: μ ≠ 17 and the...
asked 1 hour ago -
in the past year TVG had revenues of 3 million, cost
of goods sold of $25...
asked 1 hour ago -
4) In a polypeptide, which bond cannot rotate because of its
partial double bond character?
The...
asked 1 hour ago -
Assume that in the short run L = 1,000 and K = 100. 1. What is...
asked 1 hour ago -
At a given temperature, 2.06 atm of H2 and 3.7 atm of Br2 are
mixed and...
asked 1 hour ago -
Sodium reacts with Hydrochloric acid to form sodium chloride and
hydrogen gas. 2Na(s)+ 2 HCl(aq)-> 2...
asked 2 hours ago -
The following circuits (1 & 2) are combined to form a
series-parallel circuit and resulting circuit...
asked 2 hours ago