2. Tommy has put $2,000 into his savings account. The account pays 10% yearly interest. After...

Question

Question

math algebra

Answer 1

Answer #1

Solution:

Present value of money(P) = $2000

rate(r) = 10% yearly = 0.1

time(n) = 25 years

Future Value =

$\small F.V. = P(1 + r)^{n}$

$\small F.V. = 2000(1 + 0.1)^{25}$

$\small F.V. = 2000(1.1)^{25}$

$\small F.V. = 21669.41$

After 25 years, Tommy will have $21669.41 money in his account.

PS: hit the like button

Answer 2

Similar Homework Help Questions

If you put $6,000 in a saving account that pays interest at the rate of 3%...

If you put $6,000 in a saving account that pays interest at the rate of 3% compounded annually, how much will you have in 5 years? (Hint: Use the future value formula.) How much interest will you earn during the 5-year period? If you put $6,000 each year into a savings account that pays interest at a rate of 4% a year, how much would you have after 5 years? Please explain your answers
The bank pays a 3% yearly interest rate and you will put $5,000 in the bank...

The bank pays a 3% yearly interest rate and you will put $5,000 in the bank account at the end of each year for 15 years. After the last deposit, how much will be in your bank account? Alternatively, you make a single payment today rather than funding this amount by making yearly payments, what will be the amount of that payment? What is the present value of your annuity at time zero? Are these two amounts the same?
$20,000 is put into an empty savings account with a nominal interest rate of .01%. No...

$20,000 is put into an empty savings account with a nominal interest rate of .01%. No other contributions are made to the account. With monthly compounding, how much interest will have been earned after fifteen years? Select one: a.$2 b. $10 O c. $30 d.$90

M C CUNICU NU Tulure Value or savings account If you put $4,000 in a savings...

M C CUNICU NU Tulure Value or savings account If you put $4,000 in a savings account that pays Interest at the rate of 7 percent, compounded annually. a. how much will you have in three years? Round the answer to the nearest cent. Round PV-factor to three decimal places or use the Appendix A. (Hint: Use the future value formula.) b. how much interest will you earn during the three years? Round the answer to the nearest cent. c....
If you put $1,000 in a savings account at an interest rate of 10%, how much...

If you put $1,000 in a savings account at an interest rate of 10%, how much money will you have in one year? Select one: a. $909. b. $1,200. c. $1150 d. $1,100 e. $950.
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...

Question (3) Mary made five annual deposits of $6,000 in a savings account that pays interest...

Question (3) Mary made five annual deposits of $6,000 in a savings account that pays interest at a rate of 6% per year. One year after making the last deposit, the interest rate changed to 10% per year. Five years after the last deposit, how much accumulated money can she withdraw from the account?
3.26 Georgi Rostov deposits $4,000 in a savings account that pays 8% interest com- pounded monthly....

3.26 Georgi Rostov deposits $4,000 in a savings account that pays 8% interest com- pounded monthly. Three years later, he deposits $5,000. Two years after the $5,000 deposit, he makes another deposit in the amount of $7000. Four years after the $7,000 deposit, half of the accumulated money is transferred to a fund that pays 9% interest compounded quarterly. How much money will be in each account six years after the transfer?
1. Your savings account currently has $1,200. The account pays 5 percent interest compounded annually. How...

1. Your savings account currently has $1,200. The account pays 5 percent interest compounded annually. How much will your account have 6 years from now? 2. A 10 year bond was issued three years ago. It pays 5% coupon semi-annually, and has a yield to maturity of 6%, what is the current market price of the bond? 3. A bond currently has a YTM of 8%. The bond matures in 3 years and pays interest semi-annually. The coupon rate is 7%....

You are planning to invest $2,000 in an account earning 10% per year for retirement. a....

You are planning to invest $2,000 in an account earning 10% per year for retirement. a. If you put the $2,000 in an account at age 23, and withdraw it 41 years later, how much will you have? b. If you wait 10 years before making the deposit, so that it stays in the account for only 31 years, how much will you have at the end? a. If you put the $2,000 in an account at age 23, and...