Answered: How much will be in Amber's bank…

How much will be in Amber's bank account after 2 years if the account pays 8% compounded semi-annually if she deposits $800 into the account semi-annually? $10,247.26 $3,397.17 $6,523.69 $8,762.81

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: Peter deposits $500 at the end of every month for 3 years in a savings account. The account pays 12%…

A: The formula used is shown:

Q: Maria deposits $2,000 in a savings account that pays interest at an annual compound rate of 3%. Two…

A: The amount which is earned by depositor on the deposits is known as interest. This interest can be…

Q: You have just deposited $3,000 in an unusual bank account that pays interest biannually (ance every…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: ABC Bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at…

A: Note : All the Given Options are incorrect , so we are solving the correct one for you as per the…

Q: You plan to deposit $4,000 today, $2,000 in one year and $4,000 in two years into an account earning…

A: Here, Deposit Amount today (D0) is $4,000 Deposit Amount in One Year (D1) is $2,000 Deposit Amount…

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: The future value of annuity refers to the future value of a series of payments. The future value can…

Q: A young man saved his money every quarter for 5 years into his bank account. He deposits P2,000 per…

A: Here,

Q: Taylor deposits $1500 in an account earning 4.7% interest compounded annually. How much will Taylor…

A: Future Value = Present Value x (1+ Periodic Interest Rate)^No. of Periods

Q: Meghan invested his savings in a bank at 3.75% compounded quarterly. How much money did he invest to…

A: To calculate investment value required after 8 years, present value of annuity due formula will be…

Q: John opens a passbook savings account with $100 . It pays 3.5% interest compounded quarterly. What…

A: The question is based on the concept of Future value

Q: How much will the account contain after 9 years and 3 months? How much interest will be earned?

A: Deposit amount = $600 Interest Rate = 5±70 compounded quarterly i.e 4.3 or 5.7 compounded quarterly…

Q: За. Sophia pays $200 into a bank account at the end of each month. The annual interest paid on money…

A: We need to use future value of annuity formula to calculate value of investment after 5 years.…

Q: A child age 3 is given $20,000. The amount is put into savings account which pays 4% compounded…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Anita put up a bank account with an initial deposit Lou f P25, 000. After six months, she deposited…

A: Simple interest is the amount earned only on the investment principal.

Q: Jane begins a savings program to have $4000 after 7 years. She makes a regular deposit every month…

A: The placing of cash in a financial institution such as bank is known as deposit. There are different…

Q: Moshe will need R145 000 in three years’ time, to open a bakery. He immediately starts to make…

A: The following formula will be used to calculate the monthly deposit:

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: Present Value is referred to as the current value of future sum of the funds or the cash flows…

Q: Jane begins a savings program to have $4000 after 7 years. She makes a regular deposit every month…

A: Here, Monthly Interest = Annual rate / 12 = 4%/12 = 0.3333333% Number of periods = Years*12 = 7*12 =…

Q: Jane begins a savings program to have $4000 after 7 years. She makes a regular deposit every month…

A: An Annuity is simply a fixed amount which is invested monthly to get a certain amount after a…

Q: Derek currently has $11,753.00 in an account that pays 6.00%. He will withdraw $5,408.00 every other…

A: Savings Accounts is a deposit facility offered by commercial banks. It allows accountholder to…

Q: Jane deposits 10,000 USD and opens a deposit account at a bank. It will also deposit 6,000 USD one…

A: in this we have to use future value formula to calculate interest rate.

Q: c) Joana has $12,800 in her bank account today. She makes the following withdrawals: $2,200 in 2…

A: We need to use compound interest formula to solve this problem A =P(1+i)n Where A=Compound amount…

Q: ou deposit $83000 into an account which pays 5% compounded monthly. How much can you withdraw at the…

A: You can withdraw interest forever

Q: If you deposit $25,000 per year for 13 years (each deposit is made at the end of each year) in an…

A: The question is based on the concept time value of money. The future value is defined as the value…

Q: You owe the bank $1,245 in 9 months. How much do you need to deposit in an account today, earning…

A: As per the given information: Amount owed to the bank - $1,245 in 9 months Earning - 3.25% APR…

Q: You just put $1,000 in a bank account that pays 6 percent nominal annual interest, compounded…

A: Deposit amount (PV) = $ 1000 Annual interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50%…

Q: Heidi deposits $8,000 in a savings account that earns 4.5% compound interest. What is the estimated…

A: Given data; deposit amount = $8000 rate of interest = 4.5% future value = 2 * deposit amount…

Q: Appa deposits $2500 in an account earning 4.9% interest compounded monthly. How much will Ap in the…

A: As the compounding increases the more is effective interest rate and more is the accumulation of…

Q: how much should you deposit in a bank paying 2% compounded quarterly to accumulate an amount of…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 7% interest…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: An individual makes six annual deposits in a savings account starting one year from now that pays…

A: Number of annual deposits (n) = 6 Interest rate up to 6 years (r) = 10% Interest rate after 6 years…

Q: Jovaira deposits ₱10,000 every 3 months in a time deposit account giving 7% interest rate compounded…

A: Quarterly deposit (P) = P 10,000 Annual interest rate = 7% Quarterly interest rate (r) = 7%/4 =…

Q: What amount must I deposit in the bank to receive $6,000 in twelve years if my account pays 3.5%…

A: Interest is an additional amount which is received over the period at fixed rate. Depositor get sum…

Q: Heidi deposits $8,000 in a savings account that earns 4.5% interest, compounded quarterly. How much…

A: This question is from time value of money. It is the concept that money you have now is worth more…

Q: If you deposit $7,000 in a bank account that pays 9% interest annually, how much will be in your…

Q: Elizabeth Brown has $23,000 that she can deposit into a savings account for five years. Bank A…

A: Here, we need to calculate the future value of the amount deposited today at a given interest rate…

Q: How much would you need to deposit in an account each month in order to have $30,000 in the account…

A: Future value = $ 30,000 Time = 7 years Interest rate = 2% Let, the monthly deposit = $P Then,…

Q: How much monthly deposit must be made for 8 years in order to accumulate ₱125,000 at 7% compounded…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: How much should Lisa have in a savings account that is earning 2.50% compounded monthly, if she…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: A deposit of $3,000 is made in a savings account that pays 7.5% interest compounded annually. How…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: You plan to withdraw the amounts given below over the next five years from a savings account that…

A: GIVEN, R=9% YEAR CASHFLOW 1 0 2 24000 3 14000 4 26000 5.00 42000

Q: Your bank pays 5% annual interest compounded semiannually on your savings account. You don't expect…

A: SEMI ANNUAL INTEREST RATE (5%/2) 2.50% PERIOD (4*2) 8 PRESENT VALUE $2,700 PMT 0

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: 1. At the beginning of each quarter, P36,000 is deposited into savings account that pays 6%…

A: Honor code: Since you have asked multiple questions, we will solve the one question for you. If you…

Q: The Martin family recently deposited $1,000 in a bank account that pays a 6 percent nominal interest…

A: Deposit amount (P) = $ 1000 Interest rate = 6% Monthly interest rate (r) = 6%/365 =…

Q: You will be able to deposit $4,000 at the end of each of the next 5 years in a bank account paying…

A: We need to use future value formula to calculate future value of single deposit and future value of…

Q: You deposit $400 each month into an account earning 2% annual interest compounded monthly. (Enter…

A: Monthly deposit (P) = $ 400 Annual interest rate = 2% Monthly interest rate (r) = 2%/12 =…

Question

How much will be in Amber's bank account after 2 years if the account pays 8%
compounded semi-annually if she deposits $800 into the account semi-annually?
$10,247.26
$3,397.17
$6,523.69
$8,762.81

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Imelda opens a savings account with $12,000, which pays an annual interest rate of 7.8%. If she reinvests the generated interest every month and also deposits $2,300 each month, how much will be in the account after 2 years? The interest is reinvested on the same day as the $2,300 deposit. Otions: 69177.89 71052.15 73548.61 70524.79
i Erika opened a savings account today and she immediately put $10,000 into it. She plans to contribute another $20,000 one year from now, and $50,000 two years from now. The savings account pays a 6 percent annual interest rate. If she makes no other deposits or withdrawals, how much will she have in the account 10 years from today? a.$ 8,246.00 b.$116,937.04 c$131,390.46 d.$164,592.62 e.$190,297.04 2/4
A certain account pays 3.12% interest compounded weekly. Audrey wishes to invest money into this account today so that she will be able to withdraw $100 every week for the next year a) How much must she invest today b) How much interest does she earn
A mother deposits P15,500 each quarter in a savings bank paying 12.5% compounded quarterly. If she desires to accumulate P175,000, a). how many full deposits must she make? b). How much will the final deposit be (if any) if it is made 3 months after the last full deposit of P15,500? c). How much will the final deposit be if it is made on the last deposit date?
What amount must I deposit in the bank to receive $6,000 in twelve years if my account pays 3.5% compounded Monthly?
Laura wants to accumulate P150,000 in her bank account by depositing P1000 at the beginning of each month. If interest on the account is 10% compounded semi-annually, for how long does Laura have to deposit the money?a.)7.5 Yearsb.)9.8 Yearsc.)6.6 Yearsd.)8.2 Years
Edna deposits $2,000 in her bank account which is earning 2% in interest per year. How much will the account have in it in 10 years assuming no other deposits or withdrawals? a) $2,040.00 b) $1,640.70 c) $2,437.99 d) $2,400.00
You deposit $1,700 at the end of each year into an account paying 8.6 percent interest. a. How much money will you have in the account in 16 years? Future value of 16 deposits b. How much will you have if you make deposits for 32 years? Future value of 32 deposits
Suppose Zoe had deposited another $900 into a savings account at a second bank at the same time. The second bank also pays a nominal (or stated) interest rate of 7% but with quarterly compounding. Keeping everything else constant, how much money will Zoe have in her account at this bank in 13 years? O $163.00 O $166.16 O $964.67 O $2,218.36
Old Time Savings Bank pays 8.25% interest on its savings account. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the tenth year?
If you deposit OMR 12200 in your account in a bank. If your bank pays 8.15% interest, how much will you get in 12 years? Select one: a. 31537.63 b. 29237.63 c. 31237.63 d. 29736.63