Question future value it is now january 1 2014 today you, Ask an Expert

Finance

Question: Future Value: It is now January 1, 2014. Today you will deposit $ 1,000 into a savings account that pays 8%.

a) If the bank compounds interest annually, how much will you have in your account on January 1, 2017?

b) What will your January 1, 2017, balance be if the bank uses quarterly compounding?

c) Suppose you deposit $ 1,000 in three payments of $ 333.333 each on January 1 of 2015, 2016, 2017. How much will you have in your account on January 1, 2017 based on 8% annual compounding.

d) How much will be in your account if the three payments begin on January 1, 2014?

e) Suppose you deposit three equal payments into your account on January 1, 2015, 2016, and 2017. Assuming an 8% interest rate, how large must your payments be to have the same ending balance as in Part a?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92601442

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Fidelity select health care portfolio is a sector mutual

Fidelity Select Health Care Portfolio is a sector mutual fund that has returned 16 % annually, on average, in the past 10 years. This is significantly higher than the S&P average of 11.24%. Is this proof that stock marke ...

1 your firm expects to incur a 500k loss in year 1 and

1. Your firm expects to incur a ($500K) loss in year 1 and make $100K of net income in year 2 and $300K of net income in year 3. The retention ratio is projected to be 100%. The beginning equity balance on the balance sh ...

In terms of secondary data analysis what is behavioral

In terms of secondary data analysis, what is "behavioral targeting," and why has it become so important to marketers today? Why is it controversial?

Net income is 300 million depreciation is 70 million

Net income is 300 million, depreciation is 70 million, capital expenditures are 120 million, investment in working capital is 30 million, interest expenses (before tax) are 40 million, and outstanding debt is 850 million ...

1 what considerations do you need to take when considering

1. What considerations do you need to take when considering "time value of money"? 2. Why is the following statement true? "A dollar today is worth more than a dollar tomorrow."

A project costs 67600 and is expected to generate 16000 per

A project costs $67,600 and is expected to generate $16,000 per year for 6 years. The firm's required rate of return is 8%. What is the traditional payback period and discounted payback period?

A call option on a stock has an exercise price of 3450 if

A call option on a stock has an exercise price of? $34.50. If the stock price at expiration is? $37.50, what is the option payoff for a short call? position?

A client has identified two annuities that are available

A client has identified two annuities that are available for purchase, The first annuity pays $1,000 at the end of each month over a 3-year period at a nominal rate of 13% p.a. The second annuity pays $3,000 at the end o ...

Consider a currency swap for 10 million and sf 15 million

Consider a currency swap for $10 million and SF 15 million. One party pays dollars at a fixed rate of 9%, and the other pays Swiss francs at a fixed rate of 8 percent. The payments are made semiannually based on the exac ...

A perpetual bond sells for 885 and pays a semiannual coupon

A perpetual bond sells for $885 and pays a semiannual coupon in the amount of $34. What is the annualized yield for the bond?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert