James Henderson deposited $19,000 in a money market certificate that provides interest of 8% compounded quarterly...

James Henderson deposited $19,000 in a money market certificate that provides interest of 8% compounded quarterly if the amount is maintained for 3 years. How much will Cindy Henry have at the end of 3 years? (Round factor values to 5 decimal places, e.g. 1.25124. Round answers to the nearest whole dollar, e.g. 5,250.)

Expert Solution



Annual rate of interest is 8% ; interest compounded Quarterly
So Quarterly interest Rate = 8% /4 Quarters = 2%

Quarters	FVF of $ 1 @ 2%
0	1.00000
1	1.02000
2	1.04040
3	1.06121
4	1.08243
5	1.10408
6	1.12616
7	1.14869
8	1.17166
9	1.19509
10	1.21899
11	1.24337
12	1.26824

	Deposite Amount	PVF @ 9% in Eighth Year	Future Value
Future Value =	$ 19,000.00	1.26824	$ 24,097


Answer = $ 19,000 wil become $ 24,097 in three @ 8% compounded Quarterly

ekkarill92 answered 1 year ago

11) A debt of $10,000 with interest at 8% compounded quarterly is to be repaid by...

11) A debt of $10,000 with interest at 8% compounded quarterly is to be repaid by equal payments at the end of every six months for two years. a) Calculate the size of the semi-annual payments. b) Construct an amortization table for the complete 2 years with dollar amounts to two decimal places i.e. include the pennies. Round your semi-annual payment to the next higher dollar. If you did not get an answer to part a), assume a debt of...

A debt of $10 000.00 with interest at 8% compounded quarterly is to be repaid by...

A debt of $10 000.00 with interest at 8% compounded quarterly is to be repaid by equal payments at the end of every three months for two years. a) Calculate the size of the monthly payments. b) Construct an amortization table. c) Calculate the outstanding balance after three payments. Amortization Table Payment Number Amount Paid Interest Paid Principal Repaid Outstanding Principal Balance 0 1 2 3 4 5 6 7 8 Barbara borrowed $12 000.00 from the bank at...

Quarterly compounding implies that interest is compounded times per year. (2,12,3,6,4) You have deposited $42,000 into...

Quarterly compounding implies that interest is compounded times per year. (2,12,3,6,4) You have deposited $42,000 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of seven years? $50,911.29 $72,730.41 $58,184.33 $87,276.49 $58,184.33 $87,276.49

16. Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded...

16. Assume that you purchase a 6-year, 8% savings certificate for $1,000. If interest is compounded annually, what will be the value of the certificate when it matures? * A. $630.17 B. $1,469.33 C. $1,677.10 D. $1,586.87 E. None of the above. 17. Suppose you make 5 annual deposits of $1,000 in a savings account paying 6% compounded annually. The deposits are made at the beginning of each year. What amount would be in your account in year 5? *...

On January 1, $5000 is deposited into a high-interest savings account that pays 8% interest compounded annually.

On January 1, $5000 is deposited into a high-interest savings account that pays 8% interest compounded annually. If all the money is withdrawn in 5 equal end-of-year sums beginning December 31 of the first year, how much will each withdrawal be?

$1000 is deposited into an account at time t=0. The nominal interest rate is 8% compounded...

$1000 is deposited into an account at time t=0. The nominal interest rate is 8% compounded semiannually during the first year. An additional $118.40 is deposited into the account at time t=1 and the fund grows at a force of interest 100 2 t  t  during the second year. 1) Calculate the semiannual effective interest rate during the first year. 2) Calculate the account value at time t=1 before the additional $118.40 deposit. 3) Calculate the total account...

You recently inherited $10,000 and deposited the money today in an investment account paying 8% compounded...

You recently inherited $10,000 and deposited the money today in an investment account paying 8% compounded annually. Inheriting this money has motivated you to plan for the future and you have decided that you would like to have $250,000 in the bank 15 years from today. To achieve this goal, in addition to the money you have already deposited in the investment account, you plan to deposit an equal amount of money in the account each year for the next...

Josh deposited $800 in a savings account at 4.0% interest, compounded monthly. A) how much money...

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)?

You buy a 2-year, 8 percent savings certificate for $1,000. If interest is compounded annually, what...

You buy a 2-year, 8 percent savings certificate for $1,000. If interest is compounded annually, what will be its value at maturity? a. $1,067.43 b. $1,166.40 c. $1,201.03 d. $1,396.57 e. $1,466.33

A man is planning to retire in 15 years. Money can be deposited at 8% interest...

A man is planning to retire in 15 years. Money can be deposited at 8% interest compounded quarterly, and it is also estimated that the future general inflation rate will be 6%. What amount of end-of-quarter deposit must be made each quarter until the man retires so that he can make annual withdrawals of $80,000 in terms of today's dollars over the 20 years following his retirement? (Assume that his first withdrawal occurs at the end of the first year...

Question