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(1 point) If you need $20,000 four years from now, what is the minimum amount of...
Question 29 You need $8,000 four years from now for a down payment on your future...
Question 29 You need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer. O $6,269.59 O $6,578.95 O $6,394.12 O $6,189.83 Click if you would like to Show Work for this question: Open Show Work SUBMIT AN! Question Attempts: 0 of 1 used SAVE FOR LATER 11:40 PM E S 11/27/20 search
(1 point) What are the effective annual rates for an account paying an annual interest rate...
(1 point) What are the effective annual rates for an account paying an annual interest rate of 9% which is compounded: (a) annually? % (b) quarterly? % (c) daily (assuming there are 365 days in the year)? (d) continuously? % %
Suppose you decide to deposit $20,000 in a savings account that pays a nominal rate of...
Suppose you decide to deposit $20,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after 6 months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) A) $20,196.86 B) $21,639.49 C) $20,609.04 D) $19,990.77
What is the present value of an annuity that pays $352 at the beginning of each...
What is the present value of an annuity that pays $352 at the beginning of each year for 47 years if the annuity earns 12% annually? An account pays 2% annual interest compounded monthly. What is the effective interest rate on this account? If you deposit some money into a bank account today, to the nearest year, how long will it take to triple your deposit if it earns 11% annually? What is the present value of an annuity that...
You want to accumulate $3 million by your retirement date, which is 25 years from now....
You want to accumulate $3 million by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 10% interest, compounded annually. You expect to receive annual raise of 5%, which will offset inflation, and you will let the amount you deposit each year also grow by 5% (i.e., your second deposit will be 5% greater than your first, the third will be 5% greater than...
3. You want to buy a car, and a local bank will lend you $20,000. The...
3. You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 3 years (36 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? Round your answer to the nearest cent. $ What is the loan's EFF%? Round your answer to two decimal places. % 4. Find the present values of the following cash flow streams. The appropriate interest rate...
Show the excel formulas used Ex. 1 You have $5,000 in your savings account that pays...
Show the excel formulas used
Ex. 1 You have $5,000 in your savings account that pays 4% interest. How much will you have in your account after 20 years, a) if your bank pays annually compounded interest? b) if your bank pays monthly compounded interest? c) if your bank pays daily compounded interest? Current balance Interest Years Compounding Annually Monthly Daily a) FV b) FV c) FV Ex. 2 If you need $10,000 in 7 years and you can earn...
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 wish to buy a house five years from now, which will expectantly cost $550,000 after...
You wish to buy a house five years from now, which will expectantly cost $550,000 after five years. You will pay parts of this price from your personal deposit. You will cover the rest of the purchase price by taking two types of loans at the time of purchase: a 4-year fixed-interest personal loan of $20,000 - a 25-year fixed-interest house loan for the rest of the house price (.e. after paying from the personal deposit and the $20,000 taken...
21. You are about to deposit $139 into one of the following saving accounts to be left on deposit for 25 years, each ban...
21. You are about to deposit $139 into one of the following saving accounts to be left on deposit for 25 years, each bank offers an account with a different interest rate and compounding period. Assuming you want to maximize your wealth, how much money would be in the bank account that offers the best effective rate of return after 25 years? Bank A. 9.5 percent rate compounded semi annually Bank B. 9.4 percent rate compounded monthly Bank C. 9.3...
Question 29 You need $8,000 four years from now for a down payment on your future house. How much money must you deposit today if your credit union pays 5% interest compounded annually? Pick the closest answer. O $6,269.59 O $6,578.95 O $6,394.12 O $6,189.83 Click if you would like to Show Work for this question: Open Show Work SUBMIT AN! Question Attempts: 0 of 1 used SAVE FOR LATER 11:40 PM E S 11/27/20 search
(1 point) What are the effective annual rates for an account paying an annual interest rate of 9% which is compounded: (a) annually? % (b) quarterly? % (c) daily (assuming there are 365 days in the year)? (d) continuously? % %
Show the excel formulas used
Ex. 1 You have $5,000 in your savings account that pays 4% interest. How much will you have in your account after 20 years, a) if your bank pays annually compounded interest? b) if your bank pays monthly compounded interest? c) if your bank pays daily compounded interest? Current balance Interest Years Compounding Annually Monthly Daily a) FV b) FV c) FV Ex. 2 If you need $10,000 in 7 years and you can earn...
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 wish to buy a house five years from now, which will expectantly cost $550,000 after five years. You will pay parts of this price from your personal deposit. You will cover the rest of the purchase price by taking two types of loans at the time of purchase: a 4-year fixed-interest personal loan of $20,000 - a 25-year fixed-interest house loan for the rest of the house price (.e. after paying from the personal deposit and the $20,000 taken...
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