How much money should a company deposit in an account with an
annual interest rate of
4%, compounded quarterly, in order to have $50,000 in six years?
(Round to the nearest dollar)
(a) $41,923
(b) $38,844
(c) $39,378
(d) $50,000
Future Value = C*[(1+(r/m))^mt] | |||
where C is the present value | |||
r is the interest rate that is 4%. | |||
t is the time period in years that is 6. | |||
m is the compounding period that is 4. | |||
Future value = 50000 | |||
C*[(1+.04/4))^4*6] = 50000 | |||
C*[(1.01)^24] = 50000 | |||
C*[1.269735] = 50000 | |||
C = 50000/(1.269735) | |||
C = 39378.31. | |||
The company should deposit | |||
(c) $39,378 | |||
in the account. |
How much money should a company deposit in an account with an annual interest rate of 4%, compounded quarterly, in ord...
Suppose you deposit $24,000 paying 7% annual interest compounded quarterly. a)how much money will be in the account after 10 years? b)how much of that is interest?
How much money should be deposited today in an account that earns 5% compounded semiannually so that it will accumulate to $8000 in three years? The amount of money that should be deposited is $ (Round up to the nearest cent.) You deposit $14,000 in an account that pays 5% interest compounded quarterly A. Find the future value after one year B. Use the future value formula for simple interest to determine the effective annual yield. A. The future value...
Problem 1: If you deposit $4000 into an account paying 6% annual interest compounded quarterly, howmuch money will be in the account after 5 years? Problem 2: If you deposit $6500 into an account paying 8% annual interest compounded monthly, how much money will be in the account after 7 years?
You deposit $2,500 at the end of the year ( 0) into an account that pays interest at a rate of 7% 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 Nine years after your deposit, the saving account changes its rate once more to 6%...
You are planning to deposit $100 in an account earning 6% interest rate. a. How much money do you have at the end of three years if interest is compounded annually? b. How much money do you have at the end of three years if interest is compounded semiannually? c. How much money do you have at the end of three years if interest is compounded quarterly? d. How much money do you have at the end of three years...
(11) An account with an annual interest rate of 3% is opened and some amount of money is deposited today. Assuming no Further transactions (withdrawals or deposits) on the account, how much should the initial deposit be so that the account has $500 16 months from now if interest is compounded (a) annually? (2 points) (b) monthly? (2 points) (c) quarterly? (4 points) (d) continuously? (2 points) Also, provide the ANNUAL yield in all parts. (11) An account with an...
You make a one-time deposit of $3600 into an account earning 6% interest compounded quarterly. How much will you have in the account in 8 years? Round to the nearest cent.
You deposit $258 at the end of each quarter into an account that pays a nominal annual rate of 16% compounded quarterly. How much will you have in the account at the end of 15 years? Enter your answer as follows: 12345 Round your answer. Do not use a dollar sign ("$"), any commas ("") or a decimal point("").
How much should you deposit at the end of each month into an investment account that pays 6% compounded monthly to have $3 million when you retire in 40 years? How much of the $3 million comes from interest? In order to have $3 million in 40 years, you should deposit how much each month? ___ round to the nearest dollar. $___ of the $3 million comes from interest. use the answer from part a to find this answer round...
If a saving account pays interest at an annual rate of 4% compounded quarterly, the amount of $1 left on deposit for 6 years would be found in a table using which factor: A. 6 periods, 1% B. 24 periods, 1% C. 6 periods, 4% D. 24 periods, 4%