Question
In: Finance
You opened an account and deposited X Dollars on January 1, 2002 in National City Bank....
You opened an account and deposited X Dollars on January 1, 2002 in National City Bank. Any balance in the account will earn 5% per year. You withdrew $500 on January 1, 2006 and $500 on January 1, 2008. You closed out this account on January 1, 2011 and received $700. How much did you initially deposit (X) in National City at the time you opened the account?
Solutions
Expert Solution
Present value of all the future inflows will be equal to the maount deposited in the beginning
Future inflows are $ 500 in the 5th year beginning (i.e. 4years compunding) , $500 in the 7th year beginning (i.e.6 year compunding) and $ 700 in the 10th year beginning (i.e.9 year compounding)
So,
X = 500/(1.05)^4 + 500/(1.05)^6 + 700/(1.05)^9
X= 411.35 + 355.34 + 429.74
x = $1196.43
jeff jeffy answered 2 years agoRelated Solutions
You opened an account and deposited X Dollars on January 1, 2012 in 53 Bank. Any...
You opened an account and deposited X Dollars on January 1, 2012
in 53 Bank. Any balance in the account will earn 5% per year. You
withdrew $500 on January 1, 2015. You plan on closing out this
account on January 1, 2019 and receive $1,000. How much did you
initially deposit (X) in the bank at the time you opened the
account?
On January 1, 2016, you deposited $6,400 in a savings account. The account will earn 10...
On January 1, 2016, you deposited $6,400 in a savings account.
The account will earn 10 percent annual compound interest, which
will be added to the fund balance at the end of each year.
Required: 1. What will be the balance in the savings account at the
end of 7 years? (Future Value of $1, Present Value of $1, Future
Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate
factor(s) from the tables provided. Round your final answers...
On January 1, 2018, you deposited $5,200 in a savings account. The account will earn 10...
On January 1, 2018, you deposited $5,200 in a savings account.
The account will earn 10 percent annual compound interest, which
will be added to the fund balance at the end of each year.
Required: 1. What will be the balance in the savings account at the
end of 7 years? 2. What is the total interest for the 7 years? 3.
How much interest revenue did the fund earn in 2018 and in
2019?
Harrison Company maintains a checking account at the First National City Bank. The bank provides a...
Harrison Company maintains a checking account at the
First National City Bank. The bank provides a bank statement along
with canceled checks on the last day of each month. The July 2021
bank statement included the following information:
Balance, July 1, 2021
$
57,428
Deposits
180,900
Checks processed
(194,010
)
Service charges
(45
)
NSF checks
(1,900
)
Monthly payment on note, deducted directly by bank from
account
(includes $220 in interest)
(4,020
)
Balance, July 31, 2021
$
38,353...
Harrison Company maintains a checking account at the First National City Bank. The bank provides a...
Harrison Company maintains a checking account at the First
National City Bank. The bank provides a bank statement along with
canceled checks on the last day of each month. The July 2018 bank
statement included the following information:
Balance, July 1, 2018
$
56,678
Deposits
180,300
Checks processed
(193,410
)
Service charges
(70
)
NSF checks
(1,600
)
Monthly loan payment deducted
directly by bank from account
(includes $620 in interest)
(3,720
)
Balance, July 31, 2018
$
38,178
The...
Harrison Company maintains a checking account at the First National City Bank. The bank provides a...
Harrison Company maintains a checking account at the
First National City Bank. The bank provides a bank statement along
with canceled checks on the last day of each month. The July 2021
bank statement included the following information:
Balance, July 1, 2021
$
56,678
Deposits
180,300
Checks processed
(193,410
)
Service charges
(70
)
NSF checks
(1,600
)
Monthly payment on note, deducted directly by bank from
account
(includes $620 in interest)
(3,720
)
Balance, July 31, 2021
$
38,178...
Harrison Company maintains a checking account at the First National City Bank. The bank provides a...
Harrison Company maintains a checking account at the
First National City Bank. The bank provides a bank statement along
with canceled checks on the last day of each month. The July 2021
bank statement included the following information:
Balance, July 1, 2021
$
57,803
Deposits
181,200
Checks processed
(194,310
)
Service charges
(60
)
NSF checks
(2,050
)
Monthly payment on note, deducted directly by bank from
account
(includes $170 in interest)
(4,170
)
Balance, July 31, 2021
$
38,413...
True/False 1.Suppose that you deposited X dollars today to receive a 1.2X dollars in two years...
True/False
1.Suppose that you deposited X dollars today to receive a 1.2X
dollars in two years from now, then the annual interest rate is
above or equal to 10%
T/F
2.Capital markets deal in short-term debt instruments, while
money markets deal in longer term debt and equity instruments
T/F
3.Risk premium: the spread between the interest rates on bonds
with default risk and the interest rates on different same maturity
treasury bonds
T/F
A. Two years ago, you opened an investment account and deposited $6,000. One year ago, you...
A.
Two years ago, you opened an investment account and deposited
$6,000. One year ago, you added another $2,100 to the account.
Today, you are making a final deposit of $8,000. How much will you
have in this account 3 years from today if you earn a 14.10 percent
rate of return?
B.
How much more current value does a perpetuity of $250 a year
have as compared to an annuity of $250 a year for 50 years given an...
June 1 The owner opened a bank account for the business with a deposit of $35,000....
June
1
The owner opened a bank
account for the business with a deposit of $35,000. This is capital
provided by him.
1
Purchased display stands,
shelving etc. (shop equipment) from Shop Displays Pty Ltd for
$35,000 and computer equipment for the shop from Computer Wizards
for $5,000. These were paid for with a loan of $36,000 from the
bank and cheque for $4,000 from the business bank account. The bank
loan is repayable over 4 years.
2
Paid $4,680...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- The International Space Station uses the electrolysis of water to continuously replenish the oxygen in the...
- 1. Strategy and business model are two important concepts introduced early in the course. What question...
- Could you create me a secant code in Matlab program? That's I can keep it and...
- Calculate the CO2 emission reduction in short tons/year that would result from increasing the efficiency of...
- QUESTION 2 (30 marks) 2.1 As the director of a firm's capital budgeting department, you have...
- What are the implications of the new information technologies (ERP, e-procurement, e-commerce, Online transactions, etc) on...
- . What are the advantages of Unit dose packaging over Multiple dose packaging and what further...
ADVERTISEMENT