Question

In: Economics

Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I added the...

Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I added the same amount, plus $20 more than the month before (i.e. $1020, $1040, $1060, etc.) If the sign on the door of my bank says they pay 6% nominal yearly interest, how much will I be able to take out of the bank on January 1st, 2023. Draw a cash-flow diagram.

Solutions

Expert Solution

Note: It has been assumed that 0.05 percent interest is credited every month (because nominal interest rate is 6 percent per year). Thus, i can withdraw $ 47379 on January 1, 2023

Rahul Sunny answered 7 months ago
Next > < Previous

Related Solutions

Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I added the...
Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I added the same amount, plus $20 more than the month before (i.e. $1020, $1040, $1060, etc.) If the sign on the door of my bank says they pay 6% nominal yearly interest, how much will I be able to take out of the bank on January 1st, 2023. Draw a cash-flow diagram.
Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I added the...
Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I added the same amount, plus $20 more than the month before (i.e. $1020, $1040, $1060, etc.) If the sign on the door of my bank says they pay 6% nominal yearly interest, how much will I be able to take out of the bank on January 1st, 2023. Draw a cash-flow diagram.
Problem 1) Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I...
Problem 1) Today, April 1st 2020, I put $1000 into the bank. Every month thereafter I added the same amount, plus $20 more than the month before (i.e. $1020, $1040, $1060, etc.) If the sign on the door of my bank says they pay 6% nominal yearly interest, how much will I be able to take out of the bank on January 1st, 2023. Draw a cash-flow diagram.
A perpetuity immediate pays 1000 each month for 7 years, and then 500 each month thereafter....
A perpetuity immediate pays 1000 each month for 7 years, and then 500 each month thereafter. If the nominal annual interest rate is 3% convertible monthly, and the present value of the perpetuity. Be sure to include the appropriate equation or expression of value that you use.
Bank statement for the month ending 30 April 2020. Bank statement Date Details Debit Credit Balance...
Bank statement for the month ending 30 April 2020. Bank statement Date Details Debit Credit Balance 01 Apr Balance 19 200,00 Cr 02 Apr Cheque No. 674 2 250,00 16 950,00 Cr Deposit 4 800,00 21 750,00Cr 03 Apr Deposit 1 500,00 23 250,00 Cr 05 Apr Cheque No. 675 1 800,00 21 450,00 Cr Bank charges      195,00 21 255,00 Cr 08 Apr Deposit 9 000,00 30 255,00 Cr Cheque No. 678      900,00 29 355,00 Cr 14 Apr...
John plans to invest $200 at the end of every quarter for next 2 years. Assume that today is January 1st, 2020.
John plans to invest $200 at the end of every quarter for next 2 years. Assume that today is January 1st, 2020. He expects to earn 10% annual rate of return with monthly compounding.2.a Calculate the interest rate to be applied2.b Calculate the future value at the end of 2 years (December 31st, 2021)2.c Calculate the present value as on today (January 1st, 2020)
Today, you start putting $200 into the bank every other month(bimonthly) for the next 10...
Today, you start putting $200 into the bank every other month (bimonthly) for the next 10 years. The account pays annual interest of 3.5%. A month after your last deposit, rounded to the nearest dollar, you will have $__________ in the account. [Do not use commas or spaces in your numerical answer.]
10. Mooner Sooner has received their bank statement for the month ending April 30, 2020. The...
10. Mooner Sooner has received their bank statement for the month ending April 30, 2020. The balance on the bank statement is $8,000. At the end of April, the balance per the books is $5,020. There are checks outstanding of $5,800 and a deposit in transit of $4,000. On the bank statement there is a EFT received of $1,500. There is an NSF check from Steve Mayberry for $300 and a bank service fee of $20. What is the reconciled...
A bond was issued on 1st April 2014at par for $1000 bearing an interest rate of...
A bond was issued on 1st April 2014at par for $1000 bearing an interest rate of 8% per annum. The interest is payable at each year end on 31st March. The bond redeemable at the end of 10th year from the date of issue at 10% premium. At present i.e. on 25th March 2018, such bond can be purchased in open market at the price of $1,023. The investor expects a rate of return of !0% per annum. Identify the...
On January 1, 2005, a person’s savings account was worth $250,000. Every month thereafter, this person...
On January 1, 2005, a person’s savings account was worth $250,000. Every month thereafter, this person makes a cash contribution of $750 to the account. If the fund is expected to be worth $500,000 on January 1, 2010, what annual rate of interest is being earned on this fund?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT