Question

Gordon invested $43,000 into a CD compounded quarterly with an annual interest rate of 3.05%. Determine...

Gordon invested $43,000 into a CD compounded quarterly with an annual interest rate of 3.05%. Determine how much money Gordon would have after 8 years. Round your answer to the nearest cent. Provide only a numerical answer (For example, if the final amount came to $5,023.97, then you would input 5023.97).

Homework Answers

Answer #1

Information provided:

Present value= $43,000

Time= 8 years*4= 32 quarters

Quarterly interest rate= 3.05%/4= 0.7625%

The question is calculated by computing the future value.

Enter the below in a financial calculator to compute the future value:

PV= -43,000

I/Y= 0.7625

N= 32

Press the CPT key and PV to compute the future value.

The value obtained is 54,832.03.

Therefore, Gordon will have 54,832.03 in 8 years.

In case of any query, kindly comment on the solution.

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
Suppose that $ 5,700 is invested at 5.3 % annual interest rate, compounded monthly. How much...
Suppose that $ 5,700 is invested at 5.3 % annual interest rate, compounded monthly. How much money will be in the account in   6 months? 24 years?
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...
Alan Jackson invests $58,700 at 8% annual interest, leaving the money invested without withdrawing any of...
Alan Jackson invests $58,700 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money. Compute the amount Alan would withdraw assuming the investment earns simple interest? Compute the amount Alan would withdraw assuming the investment earns interest compounded annually? Compute the amount Alan would withdraw assuming the investment earns interest compounded semiannually.
1a) Lucy invested $950 five years ago. Her investment paid 7.2% interest compounded monthly. Lucy's twin...
1a) Lucy invested $950 five years ago. Her investment paid 7.2% interest compounded monthly. Lucy's twin sister Laurie invested $900 at the same time. But Laurie's investment earned 8% interest compounded quarterly. How much is each investment worth today? 1b) Carl is considering the purchase of an investment that will pay him $12,500 in 12 years. If Carl wants to earn a return equal to 7% per year (annual compounding), what is the minimum amount he should be willing to...
Q1) Suppose you invest $66,624 today in an account that earns 13.00% interest annually. How much...
Q1) Suppose you invest $66,624 today in an account that earns 13.00% interest annually. How much money will be in your account 11 years from today? Q2) What is the value today, of single payment of $51,252 made 13 years from today, if the value is discounted at a rate of 04.00%? Q3) How many years would it take an investment of $333 to grow to $10,789 at an annual rate of return of 11.00%? Q4) How much money would...
Your birthday is coming up and instead of other presents, your parents promised to give you...
Your birthday is coming up and instead of other presents, your parents promised to give you $2,900 in cash. Since you have a part-time job and, thus, don’t need the cash immediately, you decide to invest the money in a bank CD that pays an annual rate of 8.20 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time? (If you solve this problem with algebra round intermediate calculations...
Chris Fowler borrowed $92,080 on March 1, 2018. This amount plus accrued interest at 8% compounded...
Chris Fowler borrowed $92,080 on March 1, 2018. This amount plus accrued interest at 8% compounded semiannually is to be repaid March 1, 2028. To retire this debt, Chris plans to contribute to a debt retirement fund five equal amounts starting on March 1, 2023, and for the next 4 years. The fund is expected to earn 6% per annum. Click here to view factor tables How much must be contributed each year by Chris Fowler to provide a fund...
Leon Bowie is trying to determine the amount to set aside so that he will have...
Leon Bowie is trying to determine the amount to set aside so that he will have enough money on hand in 6 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 6 years, by conducting some research online, Leon has developed the following estimates. Engine Overhaul Estimated Cash Outflow Probability Assessment $310 10% 510 30% 770 50% 760 10% Click here to view factor tables How much...
Determine the exact simple interest for a PhP 20,000 loan made in September 23, 2020 to...
Determine the exact simple interest for a PhP 20,000 loan made in September 23, 2020 to be paid off on December 25, 2023 at interest rate of 7% per year. Claire and Phil decided to open a savings account for Luke's college education. They initially deposited PhP 20,000 which earns at interest rate of 8% compounded quarterly. How much can be withdrawn 6 years from now if Luke chooses to split the amount equally into 4 consecutive yearly withdrawals? Ellen...
Consider the following investment offers regarding a product you have recently developed. A 10% interest rate...
Consider the following investment offers regarding a product you have recently developed. A 10% interest rate should be used throughout this analysis unless otherwise specified: Offer (I) – Receive $0.49m now and $195k from year 6 through 15. Also, if your product achieved over $100 million in cumulative sales by the end of year 15, you would receive an additional $3m. Assume that there is a 70% probability this would happen. Offer (II) – Receive 30% of the buyer’s gross...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT