HomeworkLib
Question

John made an investment for four years. After four years he obtained a total amount of...

John made an investment for four years. After four years he obtained a total amount of $20,736 from his bank. If interest rate was 20% per year, what was his interest on interest?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
John made an investment for four years. After four years he obtained a total amount of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • John has an investment opportunity that promises to pay him $12,500 in four years. He could...

    John has an investment opportunity that promises to pay him $12,500 in four years. He could earn a 5% annual return investing his money elsewhere. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the maximum amount he would be willing to invest in this opportunity? (Round your final answers to the nearest whole dollar amount.)

  • John is planning to buy a house in three years. He thinks he needs to put...

    John is planning to buy a house in three years. He thinks he needs to put down $55,000 in three years as a down payment. Currently John has $15,000. He would like to start saving in a bank that offers 8% annual interest rate. How much should John save every month into that bank account so that he can accomplish his goal?

  • John Roberts is offered an incentive package if he retires after 5 years. After retirement, the...

    John Roberts is offered an incentive package if he retires after 5 years. After retirement, the incentive package will pay him an additional $20,000 at the end of each year for the following 20 years. Assume that the relevant interest rate is 12%, compounded annually, how much is the incentive package worth today?

  • John has an investment opportunity that promises to pay him $14,104 in four years. Suppose the...

    John has an investment opportunity that promises to pay him $14,104 in four years. Suppose the opportunity requires John to invest $10,760 today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What is the interest rate John would earn on this investment? (Round your interest rate to the nearest whole percentage.) Please show me the work, thank you! Solve for i Present...

  • (d) Sam is planning to arrange a tailor-made bank deposit investment plan that can generate a...

    (d) Sam is planning to arrange a tailor-made bank deposit investment plan that can generate a regular annual interest income of $35,000, starting with the first payment received 6 years from now and the last payment received 15 years from now. Calculate the present value of this annuity amount at Year 3, given the relevant discount rate is 12% per annum. (e) If Sam is attracted by another investment compounded quarterly that grow 50% in 4 years, calculate the annual...

  • Mark Gandalla, a young engineer at John Deere, plans to retire 35 years from now. He...

    Mark Gandalla, a young engineer at John Deere, plans to retire 35 years from now. He expects that he will live another 25 years after retiring. Mark wants to have enough money upon reaching retirement age to withdraw $120,000 from the account at the end of each year he expects to live, and yet still have $1,000,000 left in the account at the time of his expected death (60 years from now). Mark Gandalla plans to accumulate the retirement fund...

  • 1) Mr. Robbins what’s to retire in 30 years with a total amount of $1,000,000. If...

    1) Mr. Robbins what’s to retire in 30 years with a total amount of $1,000,000. If he invests $75,370 today, determine the annual percentage the investment will have to earn. Assume interest is compound annually. _________% 2) On January 1, 2015, Roxy Company sold $7,500,000 of 5% bonds, due January 1, 2025. Interest on these bonds is paid on January 1 each year (the first interest payment will be made on January 1, 2016 and the last payment will be...

  • you have just recieved a windfall from an investment you made in a friends buisness. he...

    you have just recieved a windfall from an investment you made in a friends buisness. he will be paying you $11,412 at the end of the year, $22,824 at the end of the following year, and $34,236 at the end of the year after that. (3 years from today). the interest rate is 6.3% per year. A. What is the present value of windfall? B. What is the future value of windfall in three years (on date of last payment)

  • This is Section 5.3 Problem 38: John is 28 years old and plans to retire at 67. He wants to have a fund at 67 that will let him perpetually spend $4,500 a month after retirement. Assume a continuous...

    This is Section 5.3 Problem 38: John is 28 years old and plans to retire at 67. He wants to have a fund at 67 that will let him perpetually spend $4,500 a month after retirement. Assume a continuous money flow. Answer the following. Round your answers (at the last step) to integers. (a) Suppose that after his retirement John puts the money in a fund paying interest at an annual rate of 4.2%, compounded continuously. Then John will need...

  • John has bought a residential flat in Mong Kok at a price of $6 million. He...

    John has bought a residential flat in Mong Kok at a price of $6 million. He has applied for a fully-amortizing mortgage loan from a bank for 25 years, and the interest rate for the loan was based on a composite: “Prime rate minus 2.5%”. Suppose the current prime rate and the maximum loan-to-value ratio are 5.5% and 60% respectively. How much does John borrow from the bank and what is his monthly payment. (3 marks) If the prime rate...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT