(a) A sum of $2000 is deposited in a time-deposit account that pays interest at a rate of 3%per annum. Find the amount after 2 years if the interest is paid(i) annually;(ii) monthly.(b) The population P of a city n years after the beginning of 2019 is estimated byP = 20000 (1.02)". After how many years (n) the population will just over 40000?

Here we will use the concept of time value of money. As per the concept of time value of money the…

Answered: (a) A sum of $2000 is deposited in a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose that $3000 is deposited in a saving account at the rate of 8% per year. Determine in details the total amount on deposit at the end of 2 years if the interest is:simplecompounded annuallycompounded semi-annuallycompounded quarterlycompounded monthlycompounded dailycompounded continuously
Find the compound amount for the deposit and the amount of interest earned. $8800 at 4% compounded quarterly for 3 years .... The compound amount after 3 yeara is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
A deposit of $1300 will be after 3 years $1639. If the interest is compounded annually, what is the annual interest rate: a. 10.25% b. 8.02% c. 6% d. 8.5%
Find the compound amount and the amount of interest earned by the following deposit. $3,000 at 4.77% compounded continuously for 9 years. What is the compound amount? (Round to the nearest cent.)
1. A debit of ₱50,000 with interest at 12% compounded monthly is to be amortized by equals monthly payments on one year, the first due at the end of one month. Find the monthly payment and construct an amortization schedule.
You wish to save $52000 in an account which pays 3% compounded semiannually by making quarterly deposits for 6 years. What is the amount of the deposits? $ (Round to 2 decimal places.) Submit Question
A deposit of $19,000 earns a continuous force of interest given by 0.028t for the first 5 years (t is time in years), and a constant force of 0.14 thereafter. What nominal quarterly compounding rate is earned over the first 13 years?
A sum of money is deposited at the beginning of each year for 3 years at 12% p.a. compounded monthly. After the last deposit interest for the account is to be 8.24% p.a. compounded semi-annually and the account is to be paid out by payments of $1800.00, made at the beginning of each quarter for nine years. What is the size of the annual deposit?
a) Complete the following table for the first 4 periods of an annuity that pays 8.2% compounded monthly. You are making $250 payments at the end of each period. Your initial deposit is $3000. Period Interest earned Payment Ending Balance ---- ---- 3000.00 1 2 3 4 b) How much will be in your account at the end of the 4th period? ____________ c) How much did you contribute? _________________ d) How much interest was earned? _______________
Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a year.) 1) p $500, r 8%, t = 2 years A) $80.00 B) $8.00 C) $2000.00 D) $31.25
4. Castor borrowed today from ChuChu P100,000.00 and agreed to repay the loan with 3 equal monthly amounts, the first payment to start 1 month from today. How much is the value of the monthly payment? Construct an amortization schedule. Interest is 12 % compounded monthly.

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(a) A sum of $2000 is deposited in a time-deposit account that pays interest at a rate of 3% per annum. Find the amount after 2 years if the interest is paid (i) annually;