Question

Mike deposits $125,000 today into an investment account which pays 6% compounded quarterly.  How much will Mike...

Mike deposits $125,000 today into an investment account which pays 6% compounded quarterly.  How much will Mike have in his account after 20 years?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Future value FV= PV * (1+rs/m)^mN
Present value PV=                              125,000
Stated rate of interest rs= 6.00%
Number of years N= 20
Frequency of compounding per year m= 4
Future value FV= 125000 *(1+ 0.06/4)^(20*4)
FV=                    411,332.8484

Amount in 20 years is $411,332.85

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A person deposits $17000 in an account which earns 6% compounded quarterly. At the end of...
A person deposits $17000 in an account which earns 6% compounded quarterly. At the end of 4 years the person withdraws $4250, and at the end of 7 years they withdraw $5950. How much can be withdrawn at the end of 9 years in order to deplete the account?
A person deposits $ 15,000 today in a savings account that pays 3% interest. Three years...
A person deposits $ 15,000 today in a savings account that pays 3% interest. Three years later he deposits $ 14,000. And, then, two years after this last deposit, product of the profit of a developed project, deposits $ 12,500. Four years after depositing the $ 12,500, he removes half of the money accumulated in this account, and transfers this amount to an investment fund that pays a rate of 8%. How much money would you have accumulated six years...
Suppose $40,000 is deposited into an account that pays 6.5% compounded quarterly and is left there...
Suppose $40,000 is deposited into an account that pays 6.5% compounded quarterly and is left there for 20 years. How much money will be in this account? --> Round to the nearest one dollar. (No cents.) <
Rahul deposits $5000.00 in an account on April 1, 2016 which earns 6.25% compounded quarterly. How...
Rahul deposits $5000.00 in an account on April 1, 2016 which earns 6.25% compounded quarterly. How much is in the account on September 15, 2021 if simple interest is allowed for part of a conversion period?
PART 2: FINANCE a) If you deposit $23,596.00 at 13.23% annual interest compounded quarterly, how much...
PART 2: FINANCE a) If you deposit $23,596.00 at 13.23% annual interest compounded quarterly, how much money will be in the account after 4 years? b) If you deposit $1036.00 into an account paying 5.46% annual interest compounded monthly, how many years until there is $19,912.00 in the account? c) What is the value today of receiving a single payment of $55,961.00 13 years if your required rate of return on this investment is 14.25% compounded semi-annually? d) If you...
Eric deposits 100 into a savings account at time 0, which pays interest at an annual...
Eric deposits 100 into a savings account at time 0, which pays interest at an annual nominal rate of i, compounded semiannually. Mike deposits 200 into a different savings account at time 0, which pays simple interest at an annual rate of i. Eric and Mike earn the same amount of interest during the last 6 months of the 8th year.
At the end of every 3 months, Mayan deposits $100 into an account that pays 4%...
At the end of every 3 months, Mayan deposits $100 into an account that pays 4% compounded quarterly. After 2 years, she puts the accumulated amount into a certificate of deposit paying 7.5% compounded monthly for 1 year. When this certificate matures, how much will Mayan have accumulated? How much interest was earned overall?
Question A man deposits $ 29,700 into a bank, which pays 4% interest that is compounded...
Question A man deposits $ 29,700 into a bank, which pays 4% interest that is compounded semiannually. What will he have in his account at the end of three years? The owner of a small factory thinks that he will need $ 71,800 for new equipment in 10 years. He decides that he will put aside the money now so that after 10 years the $ 71,800 will be available. His bank offers him 8% interest compounded semiannually. What is...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into...
1. For the next 6 years, you pan to make equal quarterly deposits of $600.00 into an account paying 8% compounded quarterly. How much will be the total you have at the end of the time? 2. How much money will you have to deposit now if you wish to have $5,000 at the end of 8 years. Interest is to be at the rate of 6% compounded semiannually? 3. In the California “Million Dollar Lottery” a winner is paid...
arnold deposits 300 at the end of each month into an account that pays 14.4 compounded...
arnold deposits 300 at the end of each month into an account that pays 14.4 compounded monthly. After he has made 96 payments, arnold’s account contains 53572.25. After he made 240 payments, Arnold’s account contains 412787.15. How much interest did Arnold receive between his 96th payment and his 250th payment
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT