7. Jane has $6500 to invest and is looking into the account offerings of two different banks. The first Bank (A) is offering compound interest, compounded monthly at 3.25%. The second Bank (B) is offering semi-annual interest at 3.55%. Find the amounts she would have at the end of four years. Which one is the better deal?
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- Do the relevant calculations so you can indicate which you prefer: a bank account that pays 5.9% per year (EAR) for 3 years or a. an account that pays 2.3% every 6 months for 3 years? b. an account that pays 6.7% every 18 months for 3 years? c. an account that pays 0.38% per month for 3 years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 5.9% per year for three years, the amount you will receive after three years is $. (Round to five decimal places.)please show me how to enter this into a financial calculator, i cannot use formaulas for these problems.The left bank is offering CDs at 5%. The right bank is offering a money market account at 4%. If I have a total of $10,000 to invest in these accounts and want a return (accrued interest) on my money of $436 from both accounts at the end of one year, how much should I put into each account? Fill in below with the information to set up the system of equations: State your answer in complete sentences. $ put into CD account(________) + $ put into money market(_________) = Total $$ invested(__________) CD interest Money(_________) + Money market interest(________)=Total interest(__________)
- 4) Find the account balance at the end of 10 years, if you deposit 15,000 in an account today if a. The bank pays interest at 12% per year. b. The bank pays interest at 6% every 6 months. c. The bank pays interest at 3% per quarter, d. The bank pays interest at 1% per month. What do you observe when you compare the balances for the four scenarios listed.Which do you prefer: a bank account that pays 5.5% per year (EAR) for three years or a. An account that pays 2.8% every six months for three years? b. An account that pays 7.3% every 18 months for three years? c. An account that pays 0.46% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 5.5% per year for three years: The amount you will receive after three years is $ _____(Round to five decimal places.) Part 2 a. An account that pays 2.8% every six months for 3 years? If you deposit $1 into a bank account that pays 2.8% every six months for three years: The amount you will receive after three years is $_____(Round to five decimal places.) Which bank account would you prefer? (2.8 % every six months for three years/5.5% per…Which do you prefer: a bank account that pays 5.3% per year (EAR) for three years or a. An account that pays 2.9% every six months for three years? b. An account that pays 7.8% every 18 months for three years? c. An account that pays 0.35% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 5.3% per year for three years: The amount you will receive after three years is $_______ (Round to five decimal places.) Part 2 a. An account that pays 2.9% every six months for 3 years? If you deposit $1 into a bank account that pays 2.9% every six months for three years: The amount you will receive after three years is $______(Round to five decimal places.) Part 3 Which bank account would you prefer? ▼ 5.3% per year for three years…
- Which do you prefer: a bank account that pays 5.0% per year (EAR) for three years or a. An account that pays 2.5% every six months for three years? b. An account that pays 7.5% every 18 months for three years? c. An account that pays 0.50% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 5.0% per year for three years: The amount you will receive after three years is _________________(Round to five decimal places.)Which do you prefer: a bank account that pays 5.0% per year (EAR) for three years or a. An account that pays 2.5% every six months for three years? b. An account that pays 7.5% every 18 months for three years? c. An account that pays 0.50% per month for three years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) If you deposit $1 into a bank account that pays 5.0% per year for three years: The amount you will receive after three years is $ (Round to five decimal places.)(b) Peter has $10,000 that he can deposit in any three savings accounts for a 3- year period. Bank A compounds interest on an annual basis, Bank B compounds interest twice each year, and Bank C compounds interest each quarter. All three banks have a stated annual interest rate of 4%. What amount would Peter have at the end of the third year, leaving all interest paid on deposit, in each bank? On the basis of your findings, which bank should Peter choose? Why? ( 12)
- I need the answer as soon as possibleA depositor currently has $6,000 and plans to invest it in an account that accrues interest continuously. What interest rate must the bank pay if the depositor needs to have $10,000 in four years?A woman went to the Beneficial Loan Company and borrowed S10,000. She must pay S323.53 At the end of each month for the next 60 months. A. What is the Monthly Interest rate she is paying? What is the Nominal Interest rate? С. What is the Effective Interest rate? Make your cash flow diagram and solve. B.
