What will a deposit of $5,000 left in the bank be worth under the following cond

Question

What will a deposit of $5,000 left in the   bank be worth under the following conditions? Left for 5 years at 6% interest? Left for 5 years at 6% interest   compounded monthly? Left for 5 years at 6% interest   compounded continuously? Left for 10 years at 6% interest? Left for 10 years at 8% interest? Your firm has a $10,000 note receivable due   from a customer. How much is the note worth today if: The note is due in 2 years and the   discount rate is 8%? The note is due in 3 years and the   discount rate is 15%? The note is due in 3 years and the   discount rate is 10% compounded monthly? How much will the following people have for   retirement? Alex deposits $100 a month for 20   years with a 6% return. Beth deposits $100 a month for 30   years with a 6% return. Chris deposits $100 a month for 30   years with a 9% return. A lottery prize advertised as "$1   million" is actually paid as $25,000 a year for 40 years. Find the present value of the   $25,000 a year for 40 years using a 5% discount rate. Find the present value using an 8%   discount rate. The winner   of this lottery is offered $500,000 now instead of the series of payments   that total $1 million. If this person believes that they can earn 5%   interest, which option should they pick? Explain. Find the monthly payments for a $15,000 car   loan with the following terms. Also find the total amount that will be paid   over the life of the loan. 4 year loan at 8% interest   (compounded monthly) Total paid 6 year loan at 12% interest   (compounded monthly) Total paid Find the amount that must be saved each year   to reach the following goals. Darby needs $20,000 in 10 years and   can receive 4% interest. Fran needs $800,000 in 35 years and   can receive 8% interest. George has $20,000 in credit card debt at   18% interest compounded monthly. How many months will it take to pay off this   amount: If he makes a $350 payment each   month? If he makes a $520 payment each   month? What is the interest rate on loans with the   following terms? On $10,000 borrowed, pay $2,000 a   year for 6 years. On $2,000 borrowed, pay $100 a month   for 25 months. Answer these questions: Jack deposits $3,000 a year at 4%   interest. In how many years will he have $50,000? How many years would it take $100 to   become $1,000 at 15% interest? You have paid $1,000 for an   investment that will pay back $1,200 in 3 years. What interest rate does that   represent? A preferred stock is expected to   pay an $8 annual dividend every year forever. If comparable market interest   rates are 9%, what is the value of this stock? Answer these additional questions: Amy's parents deposited $10,000 in   a savings account earning 3% interest compounded monthly when she was born. How much will the account have when   Amy is 21 years old? Beth is to receive $5,000 in 10   years. If Beth could be earning an 11% return on this money, what is it's   present value? Cameron has been depositing $50 a   month into a 6% account for the last 5 years. How much is in his account? Dave has recently retired, and is   being paid an annuity of $24,000 a year for the rest of his life. Statistically, he expects to live   for 18 years. Using a 7% discount rate, find the present value of the   annuity. What will a deposit of $5,000 left in the   bank be worth under the following conditions? Left for 5 years at 6% interest? Left for 5 years at 6% interest   compounded monthly? Left for 5 years at 6% interest   compounded continuously? Left for 10 years at 6% interest? Left for 10 years at 8% interest? Your firm has a $10,000 note receivable due   from a customer. How much is the note worth today if: The note is due in 2 years and the   discount rate is 8%? The note is due in 3 years and the   discount rate is 15%? The note is due in 3 years and the   discount rate is 10% compounded monthly? How much will the following people have for   retirement? Alex deposits $100 a month for 20   years with a 6% return. Beth deposits $100 a month for 30   years with a 6% return. Chris deposits $100 a month for 30   years with a 9% return. A lottery prize advertised as "$1   million" is actually paid as $25,000 a year for 40 years. Find the present value of the   $25,000 a year for 40 years using a 5% discount rate. Find the present value using an 8%   discount rate. The winner   of this lottery is offered $500,000 now instead of the series of payments   that total $1 million. If this person believes that they can earn 5%   interest, which option should they pick? Explain. Find the monthly payments for a $15,000 car   loan with the following terms. Also find the total amount that will be paid   over the life of the loan. 4 year loan at 8% interest   (compounded monthly) Total paid 6 year loan at 12% interest   (compounded monthly) Total paid Find the amount that must be saved each year   to reach the following goals. Darby needs $20,000 in 10 years and   can receive 4% interest. Fran needs $800,000 in 35 years and   can receive 8% interest. George has $20,000 in credit card debt at   18% interest compounded monthly. How many months will it take to pay off this   amount: If he makes a $350 payment each   month? If he makes a $520 payment each   month? What is the interest rate on loans with the   following terms? On $10,000 borrowed, pay $2,000 a   year for 6 years. On $2,000 borrowed, pay $100 a month   for 25 months. Answer these questions: Jack deposits $3,000 a year at 4%   interest. In how many years will he have $50,000? How many years would it take $100 to   become $1,000 at 15% interest? You have paid $1,000 for an   investment that will pay back $1,200 in 3 years. What interest rate does that   represent? A preferred stock is expected to   pay an $8 annual dividend every year forever. If comparable market interest   rates are 9%, what is the value of this stock? Answer these additional questions: Amy's parents deposited $10,000 in   a savings account earning 3% interest compounded monthly when she was born. How much will the account have when   Amy is 21 years old? Beth is to receive $5,000 in 10   years. If Beth could be earning an 11% return on this money, what is it's   present value? Cameron has been depositing $50 a   month into a 6% account for the last 5 years. How much is in his account? Dave has recently retired, and is   being paid an annuity of $24,000 a year for the rest of his life. Statistically, he expects to live   for 18 years. Using a 7% discount rate, find the present value of the   annuity.

Explanation / Answer

1)

6691.13

6744.25

6749.29

8954.24

10,794.62

2)

11,664

15,208.75

13,481.41

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