11. If you put $100 in the bank today, at 8 percent compound interest per year,...

11. If you put $100 in the bank today, at 8 percent compound interest per year, how much interest will you have earned at the end of 5 years?

Group of answer choices

a. $8

b. $23.47

c. $32.48

d. $46.93

Expert Solution

FV = PV(1 + r)^t

FV = $100(1 + 0.08)^5

FV = $146.93

Interest = FV - PV

Interest = $146.93 - $100

Interest = $46.93

jeff jeffy answered 2 years ago

You have an opportunity to invest in an investment plan for the next 45 years. This plan will offer compound interest of 8 percent per year for the next 20 years and 11 percent per year for the last 25 years.

a) You have an opportunity to invest in an investment plan for the next 45 years. This plan will offer compound interest of 8 percent per year for the next 20 years and 11 percent per year for the last 25 years. If you invest $8,000 in this plan today, how much will you accumulate at the end of the 45 years? Choose the correct answer: $505,539.84 $501,516.38 $506,570.12 $509,092.54 $592,394.59 b) Your rich uncle will give you a...

If you put up $32,000 today in exchange for a 8.6 percent, 11-year annuity, what will...

If you put up $32,000 today in exchange for a 8.6 percent, 11-year annuity, what will the annual cash flow be? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

You put $500 per month in the bank today earning 6% per year. How much will...

You put $500 per month in the bank today earning 6% per year. How much will be in the account in 5 years if the interest compounds annually? What if it compounds monthly?

1. If you put up $27,000 today in exchange for a 7.75 percent, 11-year annuity, what...

1. If you put up $27,000 today in exchange for a 7.75 percent, 11-year annuity, what will the annual cash flow be? 2. You want to have $63,000 in your savings account 8 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.7 percent interest, what amount must you deposit each year? 3. Prescott Bank offers you a $35,000, 8-year term loan at 10 percent...

XYZ just deposited $3,500 in an account that will earn 7.2 percent per year in compound interest for 8 years.

XYZ just deposited $3,500 in an account that will earn 7.2 percent per year in compound interest for 8 years. If Jelena deposits $4,000 in an account in 3 years that earns simple interest, then how much simple interest per year must Jelena earn to have the same amount of money in 8 years from today as XYZ will have in 8 years from today?a. 6.58% (plus or minus .02 percentage points)b. 10.52% (plus or minus .02 percentage points)c. 8.82%...

You put $2,500 into an account earning interest at a rate of 8% per year. How...

You put $2,500 into an account earning interest at a rate of 8% per year. How much money will you have after 8 years, assuming simple interest and assuming no withdrawals? How much money will you have assuming compound interest and no withdrawals? (4 pts.) Suppose you have an investment that pays 8% per year, compounded quarterly. What interest rate are you actually getting per year? (2 pts.) What is the present value of $2,500 received in 7 years with...

You put $2,500 into an account earning interest at a rate of 8% per year. How...

You put $2,500 into an account earning interest at a rate of 8% per year. How much money will you have after 8 years, assuming simple interest and assuming no withdrawals? How much money will you have assuming compound interest and no withdrawals? (4 pts.) Suppose you have an investment that pays 8% per year, compounded quarterly. What interest rate are you actually getting per year? (2 pts.) What is the present value of $2,500 received in 7 years with...

What is the value today of $1,800 per year, at a discount rate of 8 percent,...

What is the value today of $1,800 per year, at a discount rate of 8 percent, if the first payment is received 4 years from now and the last payment is received 25 years from today?

Quincy put $100 in the bank and earned 25 cent in interest. What is the $100...

Quincy put $100 in the bank and earned 25 cent in interest. What is the $100 considered? Group of answer choices Reinvesting Current Ratio Principal Present Value The process by which Maggie manages her liquid assets is known as? Group of answer choices Quarterly Management Annual Management Management Cash Management Tom deposits his payroll check into a financial institutions that provide traditional checking and savings accounts. This type of institution is known as? Group of answer choices Credit Union Non...

Compound Interest 8.) The amount of P 20,000 was deposited in a bank earning an interest...

Compound Interest 8.) The amount of P 20,000 was deposited in a bank earning an interest of 6.5% per annum. Determine the total amount at the end of 17 years if the principal and interest were not withdrawn during this period. 9.) The amount of P 150,000 was deposited in the bank earning ang interest of 7.5% per annum. Determine the total amount at the end of 16 years, if the principal and interest were not withdrawn during the period....

Question

11. If you put $100 in the bank today, at 8 percent compound interest per year,...

Solutions

Expert Solution

Related Solutions

You have an opportunity to invest in an investment plan for the next 45 years. This plan will offer compound interest of 8 percent per year for the next 20 years and 11 percent per year for the last 25 years.

If you put up $32,000 today in exchange for a 8.6 percent, 11-year annuity, what will...

You put $500 per month in the bank today earning 6% per year. How much will...

1. If you put up $27,000 today in exchange for a 7.75 percent, 11-year annuity, what...

XYZ just deposited $3,500 in an account that will earn 7.2 percent per year in compound interest for 8 years.

You put $2,500 into an account earning interest at a rate of 8% per year. How...

You put $2,500 into an account earning interest at a rate of 8% per year. How...

What is the value today of $1,800 per year, at a discount rate of 8 percent,...

Quincy put $100 in the bank and earned 25 cent in interest. What is the $100...

Compound Interest 8.) The amount of P 20,000 was deposited in a bank earning an interest...