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
" Very Satisfied. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1829 tutors are online

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