What is the formula to calculate how much a savings account
would be worth if the...
What is the formula to calculate how much a savings account
would be worth if the initial balance is $1,000 with monthly
deposits of $75 for 10 years at 4.3% annual interest compounded
monthly? What is the formula result?
You want a savings account to grow from $1,000 to $5,000 within
two years. Assume the bank provides a 3.2% annual interest rate
compounded monthly. What is the formula to calculate how much you
must deposit each month to meet your savings goal? What is the
formula result?
A business takes out a loan for $250,000 at 4.8% interest
compounded monthly. If the business can afford to make monthly
payments of only $1,500 on the loan, what is the formula to
calculate the number of months required to repay the loan
completely? What is the formula result?
Redo your calculations from question #3 to assume that the
business can afford only a $1,000 payment. What is the revised
formula and resulting value?
A business takes out a 10-year loan for $250,000 at 5.3%
interest compounded monthly. What is the formula to calculate the
monthly payment and what is the resulting value?
Solutions
Expert Solution
First convert the interest rate into per month effective
rate.
Suppose you save $1,000 per month for 35 years. The bank
promises you an annual interest rate of 3% compounded monthly. How
much will the savings account be worth in 35 years? (Assume no
withdrawals take place).
Determine how much $1,000 deposited in a savings account paying
8% (compounded annually) will be worth after 5 years.
how would you insert this in a financial calculator? confused on
how to input (FVIF .08,5)
Your savings account is currently worth $5,000. The account pays
2.5% interest compounded annually . How much will it be worth 3
years from now ?
A) 5,543.6
B) 5,384.5
C) 5,978.9
D) 5,998.2
The formula for calculating the amount
of money in a savings account that begins with an initial principal
value (P) and earns annual interest (i) for (n) years is: P(1 +
i)n
Note that i is a decimal, not a percent interest rate: .1 NOT
10%
Write a python program that does the
following:
Prompt the user on three lines for principal, percent interest
rate and number of years to invest (using descriptive prompts)
Use a while loop to...
How would you calculate this with an excel formula on excel:
•What is the future value of the following cash flows if the
discount rate is 8%? What is the future value if the discount rate
is 5%? (this is asking you take the future value of the cash flows.
Please find the future value at year 4. ))
You put $1,000 into a savings account that pays 4% in annual
interest. How much money will you have after 2 years if the account
pays only simple interest?
a. How much must you invest today in a savings account paying 4%
so that in 15 years you will have $100000 in the account for your
son’s college fund?
b. How much must you invest annually starting a year from now so
that after 15 annual payments your daughter’s college fund will be
worth $100000? Again assume the interest rate is 4%.
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?
Josh deposited $800 in a savings account at 4.0% interest,
compounded monthly.
A) how much money will josh have in his account after 4
years?
B) After how many years will josh have $2000 in his account(if
he does not withdraw any money)?