Question

In: Finance

if you invest $20 in a savings account tha pays 5% interest how much money will...

if you invest $20 in a savings account tha pays 5% interest how much money will you have in 4 years if you make no additional deposits

Solutions

Expert Solution

A/c balance after 4 years PV×(1+r)^n
Here,
A Interest rate per annum 5%
B Number of years                                  4
C Number of compoundings per per annum                                  1
A÷C Interest rate per period ( r) 5.0%
B×C Number of periods (n)                                  4
Present value (PV) $                            20
A/c balance after 4 years $ 24.31
20×(1+5%)^4

Related Solutions

If a savings account pays 6% p.a. interest rate, how much money do you need to...
If a savings account pays 6% p.a. interest rate, how much money do you need to deposit to accumulate $72,566 in 9 years? Note that the bank will compound interest monthly.
You put $1,000 into a savings account that pays 4% in annualinterest. How much money...
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?
You invest $7,000 into a savings account that pays an annual interest rate of 12.00%.
You invest $7,000 into a savings account that pays an annual interest rate of 12.00%. How much would you have in your account after 12 years?A.$20,549B.$24,010C.$27,272D.$30,343E.$33,231F.$35,942G.$38,483H.$40,861
You have invested money in a savings account that pays a fixed monthly interest on the...
You have invested money in a savings account that pays a fixed monthly interest on the account balance. The following table shows the account balance over the first 5 months. Time in months Savings balance 0 $1500.00 1 $1521.00 2 $1542.29 3 $1563.88 4 $1585.77 5 $1607.97 (a) How much money was originally invested? $   (b) Show that the data are exponential. (Round your answer to three decimal places.) Each successive ratio of new/old is   , which shows that the data...
you deposit $500 today in a savings account that pays 6% interest, compounded annually. How much...
you deposit $500 today in a savings account that pays 6% interest, compounded annually. How much will your account be worth at the end of 40 years?
If you deposit $10,000 in a bank account that pays 5% interest annually, how much will...
If you deposit $10,000 in a bank account that pays 5% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent. What is the present value of a security that will pay $9,000 in 20 years if securities of equal risk pay 7% annually? Do not round intermediate calculations. Round your answer to the nearest cent. Your parents will retire in 28 years. They currently have...
26. You can invest in an account that pays simple interest or an account that pays...
26. You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3,900 today and both accounts have an annual interest rate of 5 percent. How much more interest will you receive in the 11th year in the account that pays compound interest? 27. You want to buy a house and will need to borrow $240,000. The interest rate on your loan is 5.71 percent compounded monthly...
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)?
a. How much must you invest today in a savings account paying 4% so that in...
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
  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?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT