Consider a $2,000 deposit earning 8 percent interest per year for five years. What is the future

Question:

Consider a $2,000 deposit earning 8 percent interest per year for five years. What is the future value, and how much total interest is earned on the original deposit vs. how much is interest earned on interest?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

See More Books

Question Posted: Sep 23, 2014 10:24 AM

See More Questions

Consider a $5,000 deposit earning 10 percent interest per year for 10 years. What is the future value, how much total interest is earned on the original deposit, and how much is interest earned on...
What is the future value of 20 periodic payments of $5,720 each made at the beginning of each period and compounded at 8%? (Round factor values to 5 decimal places, e.g. 1.25124, and final answer to...
What is the future value of an initial $100 after 3 years if it is invested in an account paying 10%annual interest?
Jogger 1 is travelling east at 6 . 5 m / s and has a mass of 8 2 kg . Jogger 2 is travelling north at 5 . 8 m / s and has a mass of 5 4 . 5 kg . One of the joggers has their head down and doesnt see...
How can you demonstrate good business judgment when it comes to multimedia documents?
Dynamic Energy Systems stock is currently trading for $$31$ per share. The stock pays no dividends. A one-year European put option on Dynamic with a strike price of $$41$ is currently trading for...
Use It's lemma to express $d F$ given that $F(x)=x^{1 / 2}$, where the stochastic process $\left\{S_{t}, t \geq 0 ight\}$ satisfies the stochastic differential equation \[d...
The following financial data were reported by 3M Company for 2007 and 2008 (dollars in millions). Instructions (a) Calculate the current ratio and working capital for 3M for 2007 and 2008. (b)...
2) At the post office, Tiffany paid $11.04 for 24 stamps. At this rate, how much would it cost for Tiffany to buy 18 stamps? 3) At a factory, there are 40 new cars produced every 8 hours. How many...
D. Deni commenced business on 1 April 2014 by depositing Sh.8 million into the business bank account. All receipts and payments were channelled through this business account. During the year ended 31...
Compute the present value of $5,000 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year.
What would be more valuable, receiving $500 today or receiving $625 in three years if interest rates are 7 percent? Why?
For the system shown in Figure, obtain the equation of motion in terms of . The disk is a solid cylinder. Assume small angles of oscillation. #mil- R/ O
What will be the effect of a technological development that reduces marginal costs in a competitive market on short-run price, quantity, and profit?
If a firm is owned by its workers but otherwise meets all the qualifications for a perfectly competitive firm, will its price and output decisions differ from the price and output decisions of a...
Under what cost condition is the shutdown point the same as the point at which a firm exits the market?
Does the product differentiation in monopolistic competition make us better or worse off? Why?
Colleges give financial aid to certain students. Is this price discrimination? If so, should it be against the law?
Balance each chemical equation. a. NaS(aq) + Cu(NO3)2(aq) b. NH(1) NH3(g) + N(g) c. HCl(aq) + O(g) HO(1) + Cl(g) d. FeS(s) + HCl(aq) FeCl(aq) + HS(g) NaNO3(aq) + CuS(s)
Data on weekday exercise time for 20 females, consistent with summary quantities given in the paper An Ecological Momentary Assessment of the Physical Activity and Sedentary Behaviour Patterns of...
Use Lemma 17.14 to show the following assertions: a) \(\lim _{n} \mathbb{E}\left(\sup _{t \leqslant T}\left|X_{t}^{n}-X_{t}ight|^{2}ight)=0 \Longrightarrow X^{n} \xrightarrow[n ightarrow...
The beta coefficient of an asset can be expressed as a function of the asset's correlation with the market as follows: a. Substitute this expression for beta into the Security Market Line (SML),...
The beta coefficient of an asset can be expressed as a function of the asset's correlation with the market as follows: a. Substitute this expression for beta into the Security Market Line (SML),...
Suppose you are given the following information. The beta of company i, bi, is 1.1, the risk-free rate, rRF, is 7 percent, and the expected market premium, rM - rRF, is 6.5 percent. (Assume that ai =...
What advantage does the private resident buying oce (store-owned offices) aord its stores that independent buying oces do not? Describe two functions of an independent buying office. Describe the 4...
10. Consider the following data - == - -5 1 3 4 -1 0 1 1 (a) Find the Least Squares Regression Line. (b) Find the coefficient of correlation and determination. (c) Find a 90% confidence interval for...
Which point on the graph y=4x are closest to the point (0, 2)? (Hint: consider the distance formula between two points)

Consider a $2,000 deposit earning 8 percent interest per year for five years. What is the future

Question:

Step by Step Answer:

The 2000 investment will grow to a future value of 293866 FV 5 2...View the full answer

Finance Applications and Theory

Students also viewed these Finance questions