Question

In: Finance

ust for fun, let’s say that your money actually could grow as fast as the rabbit...

ust for fun, let’s say that your money actually could grow as fast as the rabbit population in Australia grew, which is approximately equal to an APY of 29%. Assuming that you found a bank that would pay 29% APY and you deposited $250 into your account,

how much money would you have in your account after 1 year? After 2 years? After 5, 7, and 10 years? (Round answers to 2 decimal places, e.g. 52.75.)

Solutions

Expert Solution

Information provided:

Present value= $250

Interest rate= 29%

1.The value after 1 year is computed by calculating the future value.

The future value is calculated by entering the below in a financial calculator:

PV= -250

I/Y= 29

N= 1

Press the CPT key and FV to calculate the future value.

The value obtained is 322.50.

Therefore, the money in the account after 1 year is $322.50.

2.The value after 2 years is computed by calculating the future value.

The future value is calculated by entering the below in a financial calculator:

PV= -250

I/Y= 29

N= 2

Press the CPT key and FV to calculate the future value.

The value obtained is 416.03.

Therefore, the money in the account after 2 years is $416.03.

3. The value after 5 years is computed by calculating the future value.

The future value is calculated by entering the below in a financial calculator:

PV= -250

I/Y= 29

N= 5

Press the CPT key and FV to calculate the future value.

The value obtained is 893.08.

Therefore, the money in the account after 5 years is $893.08.

4.The value after 7 years is computed by calculating the future value.

The future value is calculated by entering the below in a financial calculator:

PV= -250

I/Y= 29

N= 7

Press the CPT key and FV to calculate the future value.

The value obtained is 1,486.17.

Therefore, the money in the account after 7 years is $1,486.17.

5.The value after 7 years is computed by calculating the future value.

The future value is calculated by entering the below in a financial calculator:

PV= -250

I/Y= 29

N= 10

Press the CPT key and FV to calculate the future value.

The value obtained is 3,190.34

Therefore, the money in the account after 10 years is $3,190.34

In case of any query, kindly comment on the solution.

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Let’s say that Wakanda decides to form a government. The government is deciding on how much money to release into the economy.
Let’s say that Wakanda decides to form a government. The government is deciding on how much money to release into the economy. Their central bank releases $1,000 into the economy and allows banks to form and start taking deposits and making loans. The central bank also sets a reserve requirement ratio of 0.6.Assume 15 loans have been made. The banks do not keep excess reserves. What is the amount loaned out for the 16th loan? (Show work)After all loans have...
Let’s say that you’re a 20-something-year-old college student. Your campus is three hours away from your...
Let’s say that you’re a 20-something-year-old college student. Your campus is three hours away from your hometown. Every time you return home – about three times per semester – you notice that there’s some delay in traffic due to the deteriorating interstate highway or bridge. To what extent should the federal government use tax dollars to repair the roads?
Let’s check in on your tomato plants…again. Say that you have planted 240 tomato seeds. You...
Let’s check in on your tomato plants…again. Say that you have planted 240 tomato seeds. You set up an infrared camera and record their germination over 24 hours. Do these data meet the assumptions for the x2 goodness-of-fit test? Explain. What are the degrees of freedom (df) for these data?
2. How many months it will take to grow your money from $10,250 to $25,000 if...
2. How many months it will take to grow your money from $10,250 to $25,000 if you can earn an interest of 8% compounded monthly? How many years will it take? 3. How many years it will take to grow your money from $3308 to $9537 if you can earn an interest of 15% compounded quarterly?
How might this information affect your water drinking habits? Why should we drink water? Let’s say...
How might this information affect your water drinking habits? Why should we drink water? Let’s say that you and a friend drink the same amount of water every day, but only one of you becomes thirsty and dehydrated. How is that possible? How is dehydration different from water intoxication? How do electrolytes and water intake relate to hypertension? Consider citing or including references to relevant, current news sources that interest you and support your post and responses.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT