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?

Solutions

Expert Solution

The amount deposited is the sum of the PV of the amount
withdrawn on 1/1/2015 and the amount left on 1/1/2019 = 500/1.05^3+1000/1.05^7 =	$ 1,142.60
Answer: $1,142.60

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

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?

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?

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...

Two accounts are opened at the same time. You deposit 1450 dollars into the first account,...

Two accounts are opened at the same time. You deposit 1450 dollars into the first account, which earns interest at an effective rate of 6.3 percent. At the same time, you deposit 260 dollars into the second account, which earns an effective rate of 11.8 percent. How long will it take for the balance in the first account to be exactly twice the balance in the second account? (Assume compound interest at all times.)

Juliana just deposited $5,000 into an account at The Compound Bank. The bank will pay 4.5...

Juliana just deposited $5,000 into an account at The Compound Bank. The bank will pay 4.5 percent interest compounded annually on this money. How much interest on interest will Juliana earn over the next 10 years? The interest on interest earned is Blank 1 Use two decimals.

What amount must be deposited in an account that earns 10% on January 1, 2017 if...

What amount must be deposited in an account that earns 10% on January 1, 2017 if an investor wants to withdraw $5,000 January 1 of each year beginning on January 1, 2018 with the last withdrawal being made on January 1, 2021? What if the withdrawals take place on December 31 of each year starting on December 31, 2017 until December 31, 2020? What if withdrawals of $2,500 occur every six months on June 30 and Dec 31 of each...

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

Subjects