Question

The lump-sum amount of money that Khalid should have deposited 5 years ago in a saving account, which earns 3.25% per year in order to accumulate SR 500,000, now, is closest to:

A. SR 426,000

B.SR 419,000

C.SR 410,000

D.SR 472,000

Answer #1

Amount accumulated in 5 years = SR 500,000

Interest rate = 3.25% or 0.0325

Time period = 5 years

Calculate the lump sum to be deposited 5 years ago -

Amount deposited = Amount accumulated in 5 years/(1 + interest rate)time period

Amount deposited = 500,000/(1 + 0.0325)5

Amount deposited = 500,000/(1.0325)5

Amount deposited = 500,000/1.1734

Amount deposited = 426,112.15

Thus,

**The lump sum amount that
Khalid should have deposited five years ago is closest to SR
426,000.**

**Hence, the correct answer is
the option (A).**

What lump sum of money must be deposited into a bank account at
the present time so that $600 per month can be withdrawn for six
years, with the first withdrawal scheduled for seven years from
today? The interest rate is 1/2% per month. (Hint: Monthly
withdrawals begin at the end of the month 84.)

What lump sum deposited today at 8% compounded quarterly for 5
years will yield the same final amount as deposits of $3000 at the
end of each 6-month period for 5 years at 4% compounded
semiannually?

What lump sum deposited today at 12% compounded quarterly for 5
years will yield the same final amount as deposits of $5000 at the
end of each 6-month period for 5 years at 8% compounded
semiannually?

In 2013, you have deposited a lump sum amount of PHP 5,000 when
you open your first bank account. Each year thereafter, you have
deposited PHP 8,000 until 2019. In addition to that, you withdraw
money and pay an existing debt of PHP 500 in 2014 and PHP 4,000
during 2017 and 2019. Draw the cash flow diagram in the perspective
of the bank.

In 2013, you have deposited a lump sum amount of PHP 5,000 when
you open your first bank account. Each year thereafter, you have
deposited PHP 8,000 until 2019. In addition to that, you withdraw
money and pay an existing debt of PHP 500 in 2014 and PHP 4,000
during 2017 and 2019. Draw the cash flow diagram in the perspective
of the bank.

5.
Your bank balance is exactly $10,000. Three years ago you
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annually compounded rate of interest has the bank been paying?
Group of answer choices
8.65%
26.00%
8.00%
6.87%
6.
Which of the following interest rates will come closest to
doubling invested money in five years?
Group of answer choices
13%
14%
15%
16%

Question 5 (1 point)
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Round the answer to two decimal places

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years, beginning five years after the last deposit? The interest
rate is 5% per year.

What equal amount Q must be deposited at the beginning of each
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year, which is compounded semiannually, how much should be
deposited now?

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