# FIN420: All Problems Chapters 4, 5, 10, 11 with Solutions.

Apr 22nd, 2015
Studypool Tutor
University of Phoenix
Course: Business and Management
Price: \$10 USD

Tutor description

An ATM service fee of \$2 is used by a person 100 times in a year. What would be the future value in 10 years (use a 4 percent rate) of the annual amount paid in ATM fees?

Word Count: 3664
Showing Page: 1/14
FIN 420All Problems Chapters 4, 5, 10, 11 with Solutions. All problems 100 % Correct 46 problems (Chapters 4, 5, 10, 11)Chapter 4PROBLEMS (p. 129)1. An ATM service fee of \$2 is used by a person 100 times in a year. What would be the future value in 10 years (use a 4 percent rate) of the annual amount paid in ATM fees? \$2,401.12 = \$200 x 12.0062. What might be a savings goal for a person who buys a five-year CD paying 4.67 percent instead of an 18-month savings certificate paying 3.29 percent? A person saving for a longer-term goal such as children's education, retirement, or purchase of a vacation home may make use of a five-year savings certificate. A person who will need the funds in less than two years would use an 18-month savings certificate. Also, if you believe interest rates will be dropping, use of a long-term certificate will guarantee a higher savings rate over this time period.3. For each of these situations, determine the savings amount. Use the time value of money tables in Chapter 1 (Exhibit 1-3) or in the Chapter 1 Appendix.a. What would be the value of a savings account started with \$500, earning 6 percent (compounded annually) after 10 years? \$500 1.791 = \$895.50b. Brenda Young desires to have \$10,000 eight years from now for her daughter's college fund. If she will earn 7 percent (compounded annually) on her money, what amount should she deposit now? Use the present value of a single amount calculation.\$10,000 0.582 = \$5,820

## Review from student

Studypool Student
" The best tutor out there!!!! "

Type your question here (or upload an image)

1825 tutors are online

### Other Documents

04/22/2015

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors