Victor put $5,000 into a bank account 7 years ago. How much should have in the...

Victor put $5,000 into a bank account 7 years ago.

How much should have in the account today if the account advertises a 5% APR compounded monthly?

(Round to the nearest cent and do not enter the dollar sign)

Solutions

Expert Solution

Monthly rate = 5% / 12 = 0.416667%

Number of periods = 7 * 12 = 84

Future value = Present value (1 + r)^n

Future value = 5000 (1 + 0.00416667)^84

Future value = 5000 * 1.418036

Future value = 7,090.18

Victor should have 7,090.18

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

if you want to have 160384 in 9 years how much money should you put in...

if you want to have 160384 in 9 years how much money should you put in a savings account today? assume that the savings account pays you 5.2% and is compounded annually.

Victor invests 300 into a bank account at the beginning of each year for 20 years....

Victor invests 300 into a bank account at the beginning of each year for 20 years. The account pays out interest at the end of every year at an annual effective interest rate of i% . The interest is reinvested at an annual effective rate of i / 2 %. The yield rate on the entire investment over the 20 year period, if he would only make deposits of 300 due is 8% annual effective. Determine i.

How much will be in your bank account at the end of five years if you...

How much will be in your bank account at the end of five years if you invest $10,000 now at 12% per annum, compounded annually? And what if the interest rate is 12% per annum, but compounded monthly? b) In the poor areas of many cities around the world, we find people offering `pay-day’ loans. One loan agency in Dacca offers to loan Gita $20 till her pay cheque arrives in two weeks time. When it arrives, she must pay...

1. How much should you deposit today in order to withdraw $5,000 each year for 7...

1. How much should you deposit today in order to withdraw $5,000 each year for 7 years? Your first withdraw will start 5 year from now and your deposit will earn 4% interest. 2. Which amount is worth more today at 14% interest rate: $1,300 in hand today or $2,500 due in five years? 3. Krystal Magee invested $135,125, 17 months ago. Currently the investment is worth $197,234. Krystal knows that the investment paid interest monthly, but she does not...

a. Suppose you have $5,000 saved. How much will you have in 10 years if you...

a. Suppose you have $5,000 saved. How much will you have in 10 years if you can earn 10% on your investment? b. Which of the following statements does NOT accurately describe a line of credit? A line of credit is already approved before the money is actually needed. A line of credit is available immediately when needed. A line of credit can be obtained at a credit union, savings and loan association, or bank. A line of credit provides...

A. Starting with $5,000, how much will you have in 18 years ifyou can earn...

A. Starting with $5,000, how much will you have in 18 years if you can earn 15 percent on your money? Round the answer to the nearest cent. Round FV-factor to three decimal places. Calculate your answer based on the FV-factor.If you can earn only 6 percent? Round the answer to the nearest cent. Round FV-factor to three decimal places.Calculate your answer based on the FV-factor.B. If you inherited $75,000 today and invested all of it in a security that...

How much should Brook Atherton put into an account today that earns 7.3 percent per year...

How much should Brook Atherton put into an account today that earns 7.3 percent per year if he wants to be able to withdraw $450 annually for 5 years starting at t=2, then $700 annually for the next 6 years, then $5000 annually for the next 8 years, and then $8500 annually for the next 15 years? A. $35,106.27 B. $10,705.61 C. $37,669.03 D. $125,172.01 E. $134,309.56

Suppose that you put $5,000 in your saving account and your bank offers an interest rate...

Suppose that you put $5,000 in your saving account and your bank offers an interest rate of 5% p.a. What will be the compounded amount in five years and the corresponding annual effective rate (AER)? a) If it was compounded quarterly? b) If it was compounded monthly? c) If it was compounded fortnightly? d) If it was compounded weekly? e) If it was compounded daily?

How much must the bank put into it's required reserves?

Bank Assets Bank Liabilities Total Reserves $500,000,000 Demand Deposits $500,000,000LoansGovernment Bonds Total $500,000,000 $500,000,000Answer the following in successive order..If the required reserve ratio is set at 20% by the FEDHow much must the bank put into it's required reserves?How much will be left in excess reserves?How much can the bank lend at max?At maximum lending, then the money multiplier will be equal to?At maximum lending, the money supply in the economy will increase by how much?If the bank...

If you put 4 billion Riels in a bank today, how much will you have two...

If you put 4 billion Riels in a bank today, how much will you have two years from now, if the rate is 1.809%, compounded daily?

Subjects