A bank features a savings account that has an annual percentage rate of r = 5.2% with interest compounded semi-annually. Aurora deposits $10,000 into the account. The account balance can be modeled by the exponential formula S(t)= future value, P is the present value, r is the annual percentage rate, n is the number of times each year that the interest is compounded, and t is the time in years. (A) What values should be used for P, r, and n? P= = = P(1 + 7)", V where S is the n= (B) How much money will Aurora have in the account in 9 years? Answer S Round answer to the nearest penny. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY Round answer to 3 decimal places.
A bank features a savings account that has an annual percentage rate of r = 5.2% with interest compounded semi-annually. Aurora deposits $10,000 into the account. The account balance can be modeled by the exponential formula S(t)= future value, P is the present value, r is the annual percentage rate, n is the number of times each year that the interest is compounded, and t is the time in years. (A) What values should be used for P, r, and n? P= = = P(1 + 7)", V where S is the n= (B) How much money will Aurora have in the account in 9 years? Answer S Round answer to the nearest penny. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year). APY Round answer to 3 decimal places.
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
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![A bank features a savings account that has an annual percentage rate of r = 5.2% with interest
compounded semi-annually. Aurora deposits $10,000 into the account.
The account balance can be modeled by the exponential formula S(t) = P(1 + 7)", where S is the
future value, P is the present value, r is the annual percentage rate, n is the number of times each year
that the interest is compounded, and t is the time in years.
(A) What values should be used for P, r, and n?
P=
n=
(B) How much money will Aurora have in the account in 9 years?
Answer $
Round answer to the nearest penny.
(C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective
annual percentage rate which includes all compounding in the year).
APY=
Round answer to 3 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d4559b7-32ee-431d-b856-210240e86126%2F4f446663-edaa-4b06-9e66-2a0b0aea8b35%2Fud48ie_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A bank features a savings account that has an annual percentage rate of r = 5.2% with interest
compounded semi-annually. Aurora deposits $10,000 into the account.
The account balance can be modeled by the exponential formula S(t) = P(1 + 7)", where S is the
future value, P is the present value, r is the annual percentage rate, n is the number of times each year
that the interest is compounded, and t is the time in years.
(A) What values should be used for P, r, and n?
P=
n=
(B) How much money will Aurora have in the account in 9 years?
Answer $
Round answer to the nearest penny.
(C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective
annual percentage rate which includes all compounding in the year).
APY=
Round answer to 3 decimal places.
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