Annual Rate : 9.0% compounding periods per year: 2 Four Rivers Bank Annual Rate : 8.0% compounding periods per year: 4 Mystic Bank 1. number of compounding periods- 2. Periodic interest rate- 3. FV factor used- 4. FV of amount - Four Rivers Bank 1. Number of compounding periods 2. periodic interest rate- 3 FV factor used 4. FV of amount- Which bank gives the better deal?

Annual Rate : 9.0% compounding periods per year: 2 Four Rivers Bank Annual Rate : 8.0% compounding periods per year: 4 Mystic Bank 1. number of compounding periods- 2. Periodic interest rate- 3. FV factor used- 4. FV of amount - Four Rivers Bank 1. Number of compounding periods 2. periodic interest rate- 3 FV factor used 4. FV of amount- Which bank gives the better deal?

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

See similar textbooks

Related questions

Q: Compare and Contrast" Give "5" similarities and "5" differences between Simple Interest and…

A: The differences between the simple and compound interest are: The formula for calculating simple…

Q: 6. How much interest will be earned in 3 years WIII be ea ih 3 years from $730 placed in a savings…

Q: 4. P1,500 payable semi-annually at 6% effective o bn qon

Q: What is the total compounding period for 3.5 years compounded monthly?

A: Answer : Given, compounded period 3.5 years . Then we have to find compounded…

Q: Determine the equivalent effective interest rate of the 20% nominal interest compounding ona monthly…

A: Given, Nominal interest rate( i )=20% =0.2 n=12 ( i.e. monthly compounded in a year means 12…

Q: What are the merits and demerits of reducing balance and flat rate of interest? What are the merits…

A: * Reducing balance of interest : interest rate calculated on outstanding amount of loan for every…

Q: 4. Describe the difference between simple and compound interest.

Q: Prinicpal 13,800 Rate % 9.4 Time 3 3/4…

Q: 22. Your savings account earns an APR of 2.5% compounded quarterly. Find the APY.

Q: find periodic interesr rate number of periods of investment 8% compounded quarterly for 9 years

A: Given information The annual interest rate r=8%. Length of investment is 9 years That is t=9 years…

Q: After 10.32 years, Mary's money became 2 % of its initial value. The money was compounded…

A: here we will use compound interest formula If P is the amount invested r is rate of interest per…

Q: Principal: $11,200.00 Interest Rate: 5.0% Date borrowed: 10/25/2023 Date Repaid: 2/13/2024 Days…

A: Time in days:Date borrowed: 10/25/2023Date repaid: 2/13/2024Using the given dates, we can calculate…

Q: True or False The amount charged for the use of principal for a given period of time is called the…

A: Consider the given statement "The amount charged for the use of principal for a given period of time…

Q: Select the correct choice below and 10 in the answer boxes within your choice. (Round to the nearest…

A: $13722378 more on the first investment than the second investment

Q: How long does it take to increase 40% of original principal at 4% compounded monthly?

A: Solving the problem by finding the time in years.

Q: BUSINESS • ECONOMICS What annual interest rate is earned by a 16-week T-bill with a maturity value…

Q: True or False? When calculating compound interest, the periodic interest rate is always less than…

A: We have to explain it is true or false that the periodic interest rate is always less than the…

Q: However, if you do not show your work, you will not receive credit. Don't forget to subtract the…

A: Apologies. We only answer one question at a time. We will answer the first one as the exact one…

Q: What is the effective rate of 16% interest compounded semiannually? And how do I enter it into a TI…

A: Calculation.From the given information, r= 0.16 and n is 2.Now compute the effective rate as…

Q: I have subimitted this question 3 times now but I do not think the answer you are providing is…

Q: Initial Annual Time to Amount After Investment Rate Double 10 Years 39. $4000 6% 40. $18,000 5% 41.…

A: 42 The investment is $12500 The time to double is 20 yr,. Consider the amount is double of $12500…

Q: If a bank pays 5% compound quarterly on its passbook savings account and calculate the effective…

A: Use simple interest and compund interest formula.

Q: 40 Find the compound amount (A_n) on a loan of ₱600,000 at 6% for 8 years compounded semi-annually.

Q: What is the relationship between the geometric average rate of return and compound interest?

A: The geometric average return formula (also known as geometric mean return) is a formula for…

Q: 3. a) Determine the simple interest earned for $600 invested at 3.75% annual simple interest for 95…

A: Simple interest = PRT/100

Q: 1.) Your 3 year investment of $20,000 received 5.2% interested compounded semi annually. What is…

A: Note : according to our guiflines i can solve only first, please reroute the remaining questions.…

Question

Mystic Bank

Annual Rate : 9.0%
compounding periods per year: 2

Four Rivers Bank

Annual Rate : 8.0%
compounding periods per year: 4

Mystic Bank

1. number of compounding periods-

2. Periodic interest rate-

3. FV factor used-

4. FV of amount -

Four Rivers Bank

1. Number of compounding periods

2. periodic interest rate-

3 FV factor used

4. FV of amount-

Which bank gives the better deal?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Initial

Step 2: Mystic Bank

Step 3: Rivers Bank

Solution

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

Table 21 Home loan from STL Bank Loan amount Toan period in years Annual interest rate Loan factor Twal repayment RI 250 000 20 11% 10.32 Use the formula: Menthly repayment (in rand) (loan amount+ 1000) x loan factor Calculate the total repayment that must be paid after 20 years by Magda's uncle.
Which term refers to the capital or the sum of money invested? Final Amount Interest Principal Maturity value
Convert 2.89% compounded quarterly to an equivalent interest rate compounded monthly. Round the effective rate to four decimal places, round the final answer, NOM(2), to four decimal places. C/Y (1) NOM (1) = EFF = (4 decimal places) % NOM (2) = C/Y (2) (4 decimal places) Next Question Pri
11. Find the present amount (P) of ₱450,000 at 8% compounded annually for 9 years.choices ₱252,112.04 ₱221,512.04 ₱225,112.04 ₱251,221.04
Miss Aisha deposited RO 5000 in a fixed deposit at 5 % interest compounded semi-annually for 5 years. At the beginning of year 3, he deposited an additional RO 2000 at 7 % rate of interest compounded quarterly. What will be the total balance in his account after 5 years? Simple interest and compound interest method generate different amount of interest. Discuss and give reason to your answer If Miss Aisha would have deposited the same amount for the same period and at the same rate of simple interest, how much amount he would have got at the end of 5 years?
Mr. Abdullah deposits OMR 5239 in a bank at an interest rate 4% compounded yearly. What is the compound interest he will receive after 2 years ? 2305.16 427.50 4599.87 42.00 871.77 Clear my choice
"mar 35. A customer deposits $2000 in a savings account that pays 5.2% interest compounded quarterly. How much money will the customer have in the account after 5 years? a. $2589.52 b. $2576.97 c. $2133.42 d. $2592.40 68,
Help me on this tutor
I need help on how to solve this problem
True or False? Bank A offers a simple interest with 10% annual rate. Bank B offers 10% interest rate compounded annually. For long term investment, Bank A will earn more interest.