Question: Present and Future Value Problems If you have $1,000 dollars and put it into a 12-month Certificate of Deposit (CD) paying 4.00% interest at term

**Present and Future Value Problems**

If you have $1,000 dollars and put it into a 12-month Certificate of Deposit (CD) paying 4.00% interest at term (maturity), how much will you have at maturity - assuming no other changes to the account?

If you have $1,000 dollars and put it into a 36-month (CD) paying 4.00% interest annually (compounding annually), how much will you have at maturity - assuming no other changes to the account?

If you need $2,000 dollars in 12 months to buy your best buddy a new set of golf club and the bank is offering 4.00% interest rate on a 12-month CD compounding annually, how much will you have to deposit today to have exactly $2,000 in 1 year - assuming no other changes to the account?

If you need $20,000 dollars in 48 months to buy your mom a new car for putting you through college, and the bank is offering 4.00% interest rate on a 4-year CD compounding annually, how much will you have to deposit today to have exactly $20,000 in 4 year - assuming no other changes to the account?

Please show your work.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

**Present and Future Value Problems** If you have $1,000 dollars and put it into a 12-month Certificate of Deposit (CD) paying 4.00% interest at term (maturity), how much will you have at maturity -...

You helped me a couple of weeks ago. I was wondering if i could setup a time for tomorrow that you could be available to help me with some questions. I will pay $20 per question. They are short and I...

1. To measure value, the concept of time value of money is used: A. to determine the interest rate paid on corporate debt. B. to ensure that expected future profits exceed current profits today. C....

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

Need to complete 10 homework but now i need 5 homework then after some time 5 homework more. Here it is attachment. Chapter 5 HW Questions [ALL OF THESE MUST BE DONE IN EXCEL] 1. Future value: Chuck...

Dr.Ramsey Please assist me with my discussion post. Subject: Annuities Systematic risk evaluates the probability and extent of negative consequences to the larger body. For example, the government...

Multiple choice questions attached in file. Fifty in total. QUESTION 1 If Sam lends his cousin, Tony, $100 for 9 years at 7% interest compounded annually, how much will his cousin owe him at the end...

I am having a hard time answering the tabs 5 thru 7 on the attached excel spread sheet. I am new at this and would love to be able to use it as an example going forward. Can you help me complete so I...

The consumption of electricity has increased historically at 6% per year. If it continues to increase at this rate indefinitely, find the number of years before the electridc utilities will need to...

34) For the equation: COBr2 (g) CO (g) + Br2 (g), you start with 4 moles in a 10 L vessel of COBr2. The reaction has a Kc = 0.76. What are the equilibrium concentrations of all species?

Suppose an investor who is in the 3 5 percent marginal tax bracket is considering the acquisition of a tax - exempt municipal bond which offers a yield of 7 . 5 percent. What would be the equivalent...

CT Corp Comprehensive Question Canadian Tire Corporation, Limited (Canadian Tire) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

Question Suppose you change jobs to a more distant location and try commuting from your old home for several years, then decide it is too difficult and move closer to the new job. Are moving...

Question What is the tax credit for employer-provided child care facilities?

Question Can an employer recover excess assets in a VEBA when it terminates after paying out all benefits due to participants?

Question: **Present and Future Value Problems** If you have $1,000 dollars and put it into a 12-month Certificate of Deposit (CD) paying 4.00% interest at term

Step by Step Solution

Students Have Also Explored These Related Finance Questions!

Question: Present and Future Value Problems If you have $1,000 dollars and put it into a 12-month Certificate of Deposit (CD) paying 4.00% interest at term