If a bank account begins the year with a $50 balance, but endsthe year with...

If a bank account begins the year with a $50 balance, but ends the year with $55, what is the implied annual interest rate?

If interest rates are currently 5% per year, then what is the interest earned on a $200 investment in one year? (Don't enter the dollar sign

Expert Solution

The interest rate is computed as shown below:

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

$ 55 = $ 50 x (1 + r)¹

$ 55 / $ 50 = 1 + r

1.1 - 1 = r

r = 10%

The interest amount is computed as shown below:

= Amount of investment x interest rate

= $ 200 x 5%

= $ 10

jeff jeffy answered 2 years ago

A(n) __ is a simplified balance sheet. asset account T - account bank account _ has...

A(n) ______ is a simplified balance sheet. asset account T - account bank account _____ has the key advantage that it is readily understood by the public and is highly transparent. The reserve rule Inflation targeting Prime rate targeting Discount rate targeting The interest rate the Fed charges other banks for loans is the ______ rate and the interest rate on over night loans from one bank to another bank is the ______ rate. federal funds; discount reverse repo; repo...

Reconcile the account by adjusting both the balance from the bank statement and the checkbook balance...

Reconcile the account by adjusting both the balance from the bank statement and the checkbook balance to obtain the current balance. The current balance based on the statement balance is? The current balance based on the checkbook balance is? Check Register: Balance: $14563.87 Checks Outstanding Deposits not Recorded Number Amount Amount 223 $97.21 $67.88 225 $105.38 $282.42 227 $45.49 $1870.32 229 $1233.42 Bank Statement: Balance: $13838.86 Bank Charge: $8.38 Interest Credit: $22.49

Account Balances as of December 31, 2018 Debit Balance Credit Balance 100000 Bank Account $277,518 110100...

Account Balances as of December 31, 2018 Debit Balance Credit Balance 100000 Bank Account $277,518 110100 Accounts Receivable (Direct Posting Account) 92,670 110150 Allowance for Bad Debts 2,500 200600 Inventory-Operating Supplies 8,832 200900 Inventory-Raw Materials (Direct Post) 52,000 200910 Inventory-Finished Goods (Direct Post) 281,298 200920 Inventory-Trading Goods (Direct Post) 66,474 210000 Prepaid Insurance 5,000 212000 Prepaid Advertising 1,100 220110 Land (Direct Post) 425,000 220210 Production Machinery, Equip & Fixtures (Dir.Post) 915,000 220310 Accumulated Depreciation-Machinery (Direct Post) 305,000 300200 Accounts Payable...

Write a class to keep track of a balance in a bank account with a varying...

Write a class to keep track of a balance in a bank account with a varying annual interest rate. The constructor will set both the balance and the interest rate to some initial values (with defaults of zero). The class should have member functions to change or retrieve the current balance or interest rate. There should also be functions to make a deposit (add to the balance) or withdrawal (subtract from the balance). You should not allow more money to...

1. What is the balance in a bank account at the end of 10 years if...

1. What is the balance in a bank account at the end of 10 years if $2,500 is deposited today and the account earnd 4% interest compounded annually? Quarterly? 2. If you deposit $10 in an account that pays 5% inteterst, compounded annually, how much will you have at the end of 10 years? 20 years? 50 years? 3. Suppose you deposit $100,000 in an account today that pays 6% interest, compounded annually. How long does it take before the...

Write a class to keep track of a balance in a bank account with a varying...

Write a class to keep track of a balance in a bank account with a varying annual interest rate. The constructor will set both the balance and the interest rate to some initial values (with defaults of zero). The class should have member functions to change or retrieve the current balance or interest rate. There should also be functions to make a deposit (add to the balance) or withdrawal (subtract from the balance). You should not allow more money to...

Using the following information: The bank statement balance is $3,370. The cash account balance is $3,527....

Using the following information: The bank statement balance is $3,370. The cash account balance is $3,527. Outstanding checks amounted to $578. Deposits in transit are $632. The bank service charge is $94. A check for $44 for supplies was recorded as $35 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement $ Adjustments: Deposits in transit not recorded by bank $ Outstanding checks Total...

Using the following information: The bank statement balance is $2,764. The cash account balance is $3,005....

Using the following information: The bank statement balance is $2,764. The cash account balance is $3,005. Outstanding checks amounted to $647. Deposits in transit are $697. The bank service charge is $182. A check for $68 for supplies was recorded as $59 in the ledger. Prepare a bank reconciliation for Miller Co. for August 31. Miller Co. Bank Reconciliation August 31 Cash balance according to bank statement$ Adjustments: $ Total adjustments Adjusted balance$ Cash balance according to company's records$ Adjustments:...

On the advice of his C.P.A., a 50 year-old sole-proprietor begins an I.R.A. to save for...

On the advice of his C.P.A., a 50 year-old sole-proprietor begins an I.R.A. to save for his retirement. He makes a series of 15 equal deposits (the first such deposit is made in one year and the last when he is 65). When he turns 66, the businessman wants to withdraw $35,000 per year for 20 years. If money grows at 4.3 % (effective rate) during the accumulation period and at 3.3% per annum thereafter, how much money does he need to deposit...

On the advice of his C.P.A., a 50 year-old sole-proprietor begins an I.R.A. to save for...

On the advice of his C.P.A., a 50 year-old sole-proprietor begins an I.R.A. to save for his retirement. He makes a series of 15 equal deposits (the first such deposit is made in one year and the last when he is 65). When he turns 66, the businessman wants to withdraw $35,000 per year for 20 years. If money grows at 4.3 % (effective rate) during the accumulation period and at 3.3% per annum thereafter, how much money does he need to deposit...

Question

If a bank account begins the year with a $50 balance, but endsthe year with...

Solutions

Expert Solution

Related Solutions

A(n) __ is a simplified balance sheet. asset account T - account bank account _ has...

Reconcile the account by adjusting both the balance from the bank statement and the checkbook balance...

Account Balances as of December 31, 2018 Debit Balance Credit Balance 100000 Bank Account $277,518 110100...

Write a class to keep track of a balance in a bank account with a varying...

1. What is the balance in a bank account at the end of 10 years if...

Write a class to keep track of a balance in a bank account with a varying...

Using the following information: The bank statement balance is $3,370. The cash account balance is $3,527....

Using the following information: The bank statement balance is $2,764. The cash account balance is $3,005....

On the advice of his C.P.A., a 50 year-old sole-proprietor begins an I.R.A. to save for...

On the advice of his C.P.A., a 50 year-old sole-proprietor begins an I.R.A. to save for...