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At Barnes Bank, Delaney invests $11000 in an account that earns a 3.6% APR compounded biannually (i.e., two times a year). To better understand how much she will earn each year, Delaney converts this compound interest to the percent her investment will increase each year (the APY) and discovers her investment will increase by exactly 3.6324% each year. Be exact, do not round. How much is the investment worth after 1

At Barnes Bank, Delaney invests $11000 in an account that earns a 3.6% APR compounded biannually (i.e., two times a year). To better understand how much she will earn each year, Delaney converts this compound interest to the percent her investment will increase each year (the APY) and discovers her investment will increase by exactly 3.6324% each year. Be exact, do not round. How much is the investment worth after 1

Essentials Of Investments
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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At Barnes Bank, Delaney invests $11000 in an account that earns a 3.6% APR compounded biannually (i.e., two times a year). To better understand how much she will earn each year. Delaney converts this compound interest to the percent her investment will increase each year (the APY) and discovers her investment will increase by exactly 3.6324% each year. Be exact, do not round. a. How much is the investment worth after 1 year? b. Define a function that gives the investment's value as a function of the number of years t since it began. f(t) = Preview Preview c. Determine the investment's value after 35 years. s[ Preview d. Simple Bank offers a 3.6% annual interest rate (this one is not compounded). How much would an investment of $11000 be worth at Simple Bank after 35 years? s Select an answer Preview e. If Delaney wants to maximize her investment, which bank should she choose? f. If both of these were loans that Delaney would need to repay instead of investments, which bank should she choose? Select an answer
Transcribed Image Text:At Barnes Bank, Delaney invests $11000 in an account that earns a 3.6% APR compounded biannually (i.e., two times a year). To better understand how much she will earn each year. Delaney converts this compound interest to the percent her investment will increase each year (the APY) and discovers her investment will increase by exactly 3.6324% each year. Be exact, do not round. a. How much is the investment worth after 1 year? b. Define a function that gives the investment's value as a function of the number of years t since it began. f(t) = Preview Preview c. Determine the investment's value after 35 years. s[ Preview d. Simple Bank offers a 3.6% annual interest rate (this one is not compounded). How much would an investment of $11000 be worth at Simple Bank after 35 years? s Select an answer Preview e. If Delaney wants to maximize her investment, which bank should she choose? f. If both of these were loans that Delaney would need to repay instead of investments, which bank should she choose? Select an answer
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