Question

1. Suppose you deposit $130 into a bank today, earning 2.5% interest. How much would you have after one year?

2. You expect to have $1,000 in one year. A bank is offering loans at 7.0 % interest per year. How much can you borrow today if you plan to use this money to repay the loan? Round to the nearest whole cent.

Answer #1

**1.**

Compute the account balance after 1 year, using the equation as shown below:

Future value = Present value*(1 + Rate)

= $130*(1 + 0.025)

= $133.25

Hence, the account balance after 1 year is $133.25.

**Note: For question 2, please
re-post the question separately.**

A friend asks to borrow $49 from you and in return will pay you
$52 in one year. If your bank is offering a. 6.1% interest rate on
deposits and loans: a. How much would you have in one year if you
deposited the $49 instead? b. How much money could you borrow
today if you pay the bank $52 in one year? c. Should you loan the
money to your friend or deposit it in the bank?
a. How...

a friend asks to borrow $51 from you and in return will pay you
$54
in one year. If your bank is offering a 6.4% interest rate on
deposits and loans:
a. How much would you have in one year if you deposited the $51
instead?
b. How much money could you borrow today if you pay the bank $54
in one year?
c. Should you loan the money to your friend or deposit it in
the bank?

A friend asks to borrow $49 from you and in return will pay you
$52 in one year. If your bank is offering a 6.5% interest rate on
deposits and loans:
A. How much would you have in one year if you deposited the $49
instead?
B. How much money could you borrow today if you pay the bank $52
in one year?
C. Should you loan the money to your friend or deposit it in the
bank?

A friend asks to borrow $48 from you and in return will pay you
$51 in one year. If your bank is offering a 6.4%
interest rate on deposits and loans:
a. How much would you have in one year if you deposited the $48
instead?
b. How much money could you borrow today if you pay the bank $51
in one year?
c. Should you loan the money to your friend or deposit it in
the bank?

A friend asks to borrow
$ 47$47
from you and in return will pay you
$ 50$50
in one year. If your bank is offering a
5.9 %5.9%
interest rate on deposits and loans:
a. How much would you have in one year if you
deposited the
$ 47$47
instead?
b. How much money could you borrow today if you
pay the bank
$ 50$50
in one year?
c. Should you loan the money to your friend or
deposit it...

Q.1 You deposit $1,000 in your bank account. If the bank pays 4%
compounded interest, how much will you accumulate in your account
after 10 years? What if the bank pays interst on semi-annual
basis?
Q.2 If you earn 6% per year on your bank account, how long will
it take an account with $100 to double to $200?
Q.3 Your landscapping company can lease a truck for $8,000 a
year(paid at year-end) for six years. It can instead buy...

How much would you have to deposit today if you want to have
$1,000 in five years and the annual interest rate is 5%?
You plan to buy a house today for $220,000. If the real estate
in your area is expected to increase in value by 2% each year, what
will be the approximate value of your house in 7 years?
How much would you have to deposit today to be able to withdraw
$500 each year for the...

A local bank is offering 9% compounded semi-annually on savings
accounts. If you deposit $1000 today, how much will you
have in 2.5 yrs.
a. 1,240.41
b. 1,295.03
c. 1,246.18
d. 1,166.32
e. 1192.5
A local bank is offering 9% compounded semi-annually on savings
accounts. If you deposit $1000 today, how much will you
have in 2.5 yrs.
a. 1,240.41
b. 1,295.03
c. 1,246.18
d. 1,166.32
e. 1192.5

Suppose you deposited $4,000 in a savings account earning 2.0%
interest compounding daily. How long will it take for the balance
to grow to $11,000? Answer in years rounded to two decimal places.
(e.g., 2.4315 years --> 2.43)
If the applicable discount rate is 5.0%, what is the present
value of the following stream of cash flows? Round to the nearest
cent.
Cash Flow Year 1: $1,000
Cash Flow Year 2: $5,000
Cash Flow Year 3: $6,000
You plan to...

1) You deposit $500 each month into an account earning 3%
interest compounded monthly.
a) How much will you have in the account in 25 years?
b) How much total money will you put into the account?
c) How much total interest will you earn?
2) Suppose you invest $190 a month for 6 years into an account
earning 7% compounded monthly. After 6 years, you leave the money,
without making additional deposits, in the account for another 21
years....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 4 minutes ago

asked 23 minutes ago

asked 39 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago