Randle Sullivan deposited $1000 in BancorpSouth 8 years ago, and the bank pays 5%. How much...

Randle Sullivan deposited $1000 in BancorpSouth 8 years ago, and the bank pays 5%. How much money will he have 10 years from today? (Hint: totally for how many years will he invest?)

Solutions

Expert Solution

n = Total investment years = 8 + 10 =	18	years
r = Rate of interest =	5%

Money at the end of 10 years from today = Amount invested 8 years ago * (1+r)^n = 1000 * (1+5%)^18 =	2406.62

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Suppose you deposited $50,000 in a bank account that pays 8.25% with monthly compounding. How much...

Suppose you deposited $50,000 in a bank account that pays 8.25% with monthly compounding. How much would be in the account after 7 months? Show all your work

Suppose you deposited $50,000 in a bank account that pays 8.25% with monthly compounding. How much...

Suppose you deposited $50,000 in a bank account that pays 8.25% with monthly compounding. How much would be in the account after 7 months?

Suppose that today (January 1) you deposited $1000 into a savings that pays 8 percent. a....

Suppose that today (January 1) you deposited $1000 into a savings that pays 8 percent. a. If the bank compounds interest annually, how much will you have in your account three years from today? b. What would your balance be in three years if the bank used quarterly compounding rather than annual compounding? c. Suppose you deposited the $1000 in four payments of $250 each on January 1 of the next four years, beginning one year from today. How much...

If $1000 is deposited at the end of each year for 5 years into an ordinary...

If $1000 is deposited at the end of each year for 5 years into an ordinary annuity earning 7.59% compounded annually, construct a balance sheet showing the interest earned during each year and the balance at the end of each year. Complete the balance sheet. Period Amount Interest Balance 1 $1000.00 2 $1000.00 3 $1000.00 4 $1000.00 5 $1000.00 (Round to the nearest cent as needed.)

You deposit $1000 in an account that pays 8% interest compounded semiannually. After 5 years, the...

You deposit $1000 in an account that pays 8% interest compounded semiannually. After 5 years, the interest rate is increased to 8.12% compounded quarterly. What will be the value of the account after a total of 10 years?

what is the future value of 1000 deposited for 5 years, if the interest rate is...

what is the future value of 1000 deposited for 5 years, if the interest rate is 10% per annuam compounded, daily, annually, monthly, contuously, weekly, weekly.

How much money will be in a savings accounts after 5 years if $150 is initially deposited in the account

How much money will be in a savings accounts after 5 years if $150 is initially deposited in the account, $150 is deposited each month in the account and interest is compounded continuously at 9% per year?

If you deposit $10,000 in a bank account that pays 5% interest annually, how much will...

If you deposit $10,000 in a bank account that pays 5% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent. What is the present value of a security that will pay $9,000 in 20 years if securities of equal risk pay 7% annually? Do not round intermediate calculations. Round your answer to the nearest cent. Your parents will retire in 28 years. They currently have...

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)

If $675 is deposited every 6 months for the next 5 years. The account pays 12%...

If $675 is deposited every 6 months for the next 5 years. The account pays 12% per year compounded quarterly. Determine the equivalent future worth at the end of the period?

Subjects