Problem #1. You invested $150 at the end of every month for 10 years at 7% interest compounded monthly. Use formulas (not tables) to calculate (a) How much your investment is worth after 10 years. Show your work. (b) If you had invested the money at the beginning of each month rather than at the end, how much would be in your account? Show your work.
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
- Suppose you invest $1,200 in an account paying 4% interest per year. a. What is the balance in the account after 2 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 25 years? How much of this balance corresponds to "interest on interest"?Suppose you invest $850 in an account paying 5% interest per year. a. What is the balance in the account after 2 years? How much of this balance corresponds to "interest on interest"? b. What is the balance in the account after 29 years? How much of this balance corresponds to "interest on interest"? a. What is the balance in the account after 2 years? The balance in the account after 2 years is $ (Round to the nearest cent.)Problem #1. You invested $1,000 at the end of every 6-month period for 10 years at 9% interest compounded semiannually. Use formulas (not tables) to calculate (a) How much your investment is worth after 10 years. Show your work. (b) If you had invested the money at the beginning of each 6-month period rather than at the end , how much would be in your account? Show your work.
- Suppose you invest $1,100 in an account paying 5% interest per year. What is the balance in the account after 4 years? How much of this balance corresponds to "interest on interest"? What is the balance in the account after 30 years? How much of this balance corresponds to "interest on interest"? (Round to the nearest cent.)You invest $500 in an account that earns $10 interest each year at each year a) at the end of 24months , what is the balance b) at the end of 30months, what is the balance c) at the end of 5years, what is the balance d) find the linear equation that gives the balance after t yearsset up an equation and solve each problem. Suppose that $500 is invested at a certain rate of interest compounded annually for 2 years. If the accumulated value at the end of 2 years is $594.05, find the rate of interest.
- Suppose $100 is invested at the end of each year for the next 5 years into an account paying an interest rate r% p.a. How much can be drawn at the end of the 5 years? Approach (i) The first $100 is contributed in one year's time and has to wait 4 years to "mature". Write an equation describing this. (ii) The second $100 is contributed in two year's time and has to wait 3 years to "mature". Write an equation describing this. (iii) The third $100 is contributed in three year's time and has to wait 2 years to "mature". Write an equation describing this. (iv) Continue with this logic and sum all the matured values expressedSuppose $100 is invested at the end of each year for the next 5 years into an account paying an interest rate r% p.a. How much can be drawn at the end of the 5 years?Approach(i) The first $100 is contributed in one year’s time and has to wait 4 years to “mature”. Write an equation describing this.(ii) The second $100 is contributed in two year’s time and has to wait 3 years to “mature”. Write an equation describing this.Answer the questions below and show all working from a financial calculator. Do not use excel: 1. Investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end ofthirty years? Rounded to 2 decimal places. 2. What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3% compounded semi-annually?