Question

For an interest rate of 5% compounded bi-weekly, find the amount of money that will be...

For an interest rate of 5% compounded bi-weekly, find the amount of money that will be on the account if $70 is deposited at the end of each period for the first year and $80 thereafter, at the end of each period, for another three years.

Homework Answers

Answer #1

Answer:

Year 1:

Bi-weekly deposit at the end of each period = $70

Bi-weekly interest = 5% / 26

Number of bi-weekly periods = 26

Value at the end Year 1 = FV (rate, nper, pmt, pv, type) = FV (5%/26, 26, -70, 0, 0) = $1864.43

Year 2 , 3 and 4:

PV = $1864.43

Bi-weekly deposit at the end of each period = $80

Bi-weekly interest = 5% / 26

Number of bi-weekly periods = 3* 26 = 78

Value at the end Year 4 = FV (rate, nper, pmt, pv, type) = FV (5%/26, 78, -80, -1864.43, 0) = $8,891.19

Amount of money that will be on the account = $8,891.19

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For an interest rate of 5% compounded bi-weekly, find the amount of money that will be...
For an interest rate of 5% compounded bi-weekly, find the amount of money that will be on the account if $70 is deposited at the end of each period for the first year and $80 thereafter, at the end of each period, for another three years.
When interest is compounded continuously, the amount of money increases at a rate proportional to the...
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt = rS, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $5000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (Round your answer to the nearest cent.) $ (b) In how many years will the...
When interest is compounded continuously, the amount of money increases at a rate proportional to the...
When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt = rS, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 8 years when $5000 is deposited in a savings account drawing 5 3/4 % annual interest compounded continuously. (Round your answer to the nearest cent.) $ (b) this is the part I’m having the...
1) When interest is compounded continuously, the amount of money increases at a rate proportional to...
1) When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, dS/dt = rS, where r is the annual rate of interest. (a)Find the amount of money accrued at the end of 9 years when $4000 is deposited in a savings account drawing 5 1/4 $ % annual interest compounded continuously. (Round your answer to the nearest cent.) (b)In how many years will the initial sum...
A savings account pays interest at the rate os 5% per year, compounded semi-annually. The amount...
A savings account pays interest at the rate os 5% per year, compounded semi-annually. The amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the next 10 years is
Find the final amount of money in an account if $4,300 is deposited at 7% interest...
Find the final amount of money in an account if $4,300 is deposited at 7% interest compounded annually and the money is left for 6 years.
​(Compound interest with​ non-annual periods) Calculate the amount of money that will be in each of...
​(Compound interest with​ non-annual periods) Calculate the amount of money that will be in each of the following accounts at the end of the given deposit​ period: The amount of money in Theodore Logan​ III's account at the end of 10 years will be? The amount of money in Vernell Coles account at the end of 3 years will be? The amount of money in Tina Elliot account at the end of 5 years will be? The amount of money...
1) Consider a $126,714 35-year mortgage with an interest rate of 8% compounded monthly. a) Calculate...
1) Consider a $126,714 35-year mortgage with an interest rate of 8% compounded monthly. a) Calculate the monthly payment. b) How much of the principal is paid the first, 25th, and last year? c) How much interest is paid the first, 25th, and last year? d) What is the total amount of money paid during the 35 years? e)What is the total amount of interest paid during the 35 years? f) What is the unpaid balance after 25 years? g)How...
a) To purchase a new vehicle, $3000 is paid as a down payment, followed by bi-weekly...
a) To purchase a new vehicle, $3000 is paid as a down payment, followed by bi-weekly payments of $175 for four years. If interest on the loan is 0.20% p.a. compounded bi-weekly, what is the cash value of the vehicle? b) To purchase a $25 000 vehicle, a loan was taken out with the bank at 3.51% compounded quarterly. Payments will be made at the end of each quarter for the next 3 years. Calculate the size of the payment...
$2000 is deposited with an annual interest of 2% compounded continuously. (a) Find the balance of...
$2000 is deposited with an annual interest of 2% compounded continuously. (a) Find the balance of the account in 5 years (b) How long will it take for the money to become 3 times at this rate?