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?
Solve the given quadratic equations by any appropriate method. All numbers are accurate to at least two significant digits. In the study of population growth, the equation p 2 = p 1 + rp 1 (1 p 1 )...
Some emerging countries suffer from very poor physical infrastructure. What are the signs of this? Give some examples of the consequences of this issue. L01
Ramakrishnan Inc. reported 2018 net income of $15 million and depreciation of $2,650,000. The top part of Ramakrishnan, Inc.'s 2018 and 2017 balance sheets is listed below (in millions of dollars)....
"I know headquarters wantsusto add that new product line," said Dell Havasi, manager of Billings Company's Office Products Division. "But I want to see the numbers before I make any move. Our...
Calculate the potential difference between points a and b in Figure P28.54 and identify which point is at the higher potential. 4.00 V 2.00 4.00 T120 V 10.0
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?
The following data relates to the inventory and purchases of item 125 for Sanders Company during May: Inventory, May 1 .................................520 units at $21.00 Purchases: May 10...
Company, a soft-drink vendor, has created a table of costs for three stocking decisions for three different states of nature: Alternatives States of Nature Low Demand Medium Demand High Demand Large...
utilizes a project scheduling software application to develop a project schedule for a construction project.
Kimi is a server or restaurant and relies on tips from a customers to make a living. She doesn't really enjoy her job and frequently think about quitting because she is constantly having 2% a happy...
What represents revenues (Inflow) and expenses (Outflow) for a healthcare organization? Your paper should include information on sources of healthcare revenue (governmental and private payers), how...
case study analysis should be a thoughtful write up including: 1.a brief case analysis 2.key questions and answers from the case from your unique perspective 3.a summary and/or recommendations...
A Galex Com pain, a manufacturer of stereo systems, started its production in October 2002. For the preceding 3 years Galex had been a retailer of stereo systems. Alter a thorough survey ol stereo...
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 =...
Comfort Golf Products is considering whether to upgrade its equipment Managers are considering two options. Equipment manufactured by Stenback Inc. costs $1,000,000 and will last five years and have...
Weaver Corporation had the following stock issued and outstanding at January 1, Year 1: 71,000 shares of $10 par common stock. 8,500 shares of $60 par, 6 percent, noncumulative preferred stock. On...
Read the following case and then answer questions On 1 January 2016 a company purchased a machine at a cost of $3,000. Its useful life is estimated to be 10 years and then it has a residual value of...

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