Ask Experts Questions for FREE Help!
 

Free Answers in 3 Easy Steps

Register Now
3 Steps
 


Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Finance & Accounting    Ask about another Subject  
 

volora
Feb 21, 2009, 06:01 PM
I used the BAII PLUS Financial calculator to figure out the following answers and I want to make sure if it's right or not. Please check for me. Any feedback would greatly appreciated.

1. Assume Bill Jones invested $3,137.84 into an account exactly one year ago. The account has an interest of 8.4% p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)? (Round your answer to the nearest cent)

Answer: 340.41

2. Assume Jed Gerbil invested $12,617 into an account exactly two years ago. The account has an interest of 11.4% p.a. How much does Jed have in his account today (that is, exactly two years after the initial deposit)?

Answer: 15,657.65

3. Assume Sheryl Jenkins wants to accumulate $532.15 in two years. She currently has $465.09 to invest. What interest rate must she earn on her investment (that is, if she deposits $465.09 today) to have $532.15 exactly two years from today?

Answers: 1.15

4. Your neighbor is asking you to invest in a venture that will double your money in 3 year(s). Compute the return the he is promising you?

Answers: 648.18

5. You want to withdraw $39,616 from your account at the end of one year and $50,997 at the end of the second year. How much should you deposit in your account today so that you can make these withdrawals? Your account pays 7 percent p.a.

Answers: 53,307.29

ROLCAM
Feb 21, 2009, 06:48 PM
1. Assume Bill Jones invested $3,137.84 into an account exactly one year ago. The account has an interest of 8.4% p.a. How much does Bill have in his account today (that is, exactly one year after the initial deposit)? (Round your answer to the nearest cent)

Answer: 340.41
INCORRECT !! Should be $3,401.42

ROLCAM
Feb 21, 2009, 06:54 PM
2. Assume Jed Gerbil invested $12,617 into an account exactly two years ago. The account has an interest of 11.4% p.a. How much does Jed have in his account today (that is, exactly two years after the initial deposit)?

Answer: 15,657.65
This is correct assuming COMPOUND INTEREST.
Calculating it with SIMPLE INTEREST the answer would have been different.
You must indicate what type of interest.

ROLCAM
Feb 21, 2009, 07:06 PM
3. Assume Sheryl Jenkins wants to accumulate $532.15 in two years. She currently has $465.09 to invest. What interest rate must she earn on her investment (that is, if she deposits $465.09 today) to have $532.15 exactly two years from today?

Answers: 1.15
This answer is incorrect.
With COMPOUND INTEREST $465.09 invested
at 1.15% per annum would give you $578.21.
and not $532.15.
So the rate must be lower than 1.15.
Try again.
With these type of questions you must indicate
what type of INTEREST you are using.

ROLCAM
Feb 21, 2009, 07:10 PM
4. Your neighbor is asking you to invest in a venture that will double your money in 3 year(s). Compute the return the he is promising you?

Answers: 648.18
This answer is incorrect.
The question is asking for a rate of return.
This should be expressed in a percentage per annum.
Again you must indicate whether you mean
COMPOUND or SIMPLE interest.

ROLCAM
Feb 21, 2009, 07:17 PM
LET US TEST YOUR ANSWER 11

5. You want to withdraw $39,616 from your account at the end of one year and $50,997 at the end of the second year. How much should you deposit in your account today so that you can make these withdrawals? Your account pays 7 percent p.a.

Answers: 53,307.29

53,307.29 @<hidden> 1.07 = 57,038.49

57,038.49 - 39,616.00 = 17,422.49

17,422.49 @<hidden> 1.07 = 18,642.06

This amount is insufficient to withdraw the
stated second amount.
CONCLUSION :- You answer is incorrect.
Please try again.