A bank customer saved 5000 PLN on the savings account. The deposit lasted for2 years. For the first 6 months continuous interest rate method was used with the4,5% nominal interest rate, for the next 9 months compound interest rate methodwas used, and during the last months simple interest rate method was used alsowith 4,5% nominal interest rate (after each change in the interest method,interest was added to the account balance). Please calculate what was thenominal interest rate in the second period if the profit from the deposit was414,70 PLN after the whole 2 years period?

There are three months of interest calculation one is continuous and other is compounding and last…

Answered: bank customer saved 5000 PLN on the…

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

See similar textbooks

Similar questions

The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $2500 at 7% compounded daily for 10 years. What is the compound amount? $ (Round to the nearest cent.)
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $4000 at 1.21% compounded semianually for 3 years. The compound amount is $ (Do not round until the final answer. Then round to the nearest cent as needed.) The interest earned is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
You have a 2-year certificte of deposit in the bank. It is paying 6% annual interest, compounded monthly. At the end of the term, your account value is $880.30. What was the initial balance of the account? Please explain using the equation in the given image, not Excel. Thank you.
Determine the interest rate earned on a $1,400 deposit when $1,800 is paid back in one year. (Round your answer to 2 decimal places.)
If you deposited P1,000 a couple of years ago in a bank that pays the interest bimonthly. After that, the money in the account had grown to P1,800. Determine the nominal interest rate and the effective interest rate.
Suppose that you deposit $7000 in a savings account that pays 4% annual interest, with interest credited to the account at the end of each year. Assuming that no withdrawals are made, complete the following: a. Find the balance in the account after 5 years. b. Find the balance of the account after 9 years and 10 months.
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $4000 at 1.07% compounded semianually for 3 years. The compound amount is $. (Do not round until the final answer. Then round to the nearest cent as needed.)
PLEASE HELP ASAPThe client has made a deposit in the bank in the amount of 10,000$. The duration of the deposit is 3 years. The interest rate on the deposit is 8% with quarterly capitalization.a) Please calculate how much the customer has earned on this deposit? b) Please calculate the effective interest rate for this deposit? c) What was the real interest rate for this deposit if inflation was 2% per annum? d) If the customer would like to systematically save in an equal amount (instead of making a deposit at the beginning), how much he/she would have to pay into the deposit quarterly at the end of the quarter to have the same return on investment as in point a) - the interest rate is the same as in point a) .e) Would an investment in shares, for the same period, bought initially at 120$ and then sold at 130$, bring a higher or lower profit rate than the above investment. Note the shares paid a dividend of 6.80 $ annually at the end of each the year.
You are able to make a current deposit in the amount of $21,605.49. The expected discount rate is 9.6%. Interest is earned on an annual basis. The time period is 10 years. What is the size of the annual withdrawal possible under these circumstances? a. $2,160.54 b. $3465.00 c. $3,456.00 d. $4,356.00
Determine the interest rate earned on a $1,500 deposit when $1,680 is paid back in one year.
A sum of 2500 TL is deposited in a bank and cashed back at the end of 3 year as 5000 TL. Find the monthly and annual interest rate. Write your accounts 3 digits after the virgule.
1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years, the bank will pay $5,310.00 to the certificate owner. Based on a three- month interest period: What is the interest rate the bank is paying you each interest period? b) deposit? What are the nominal and effective interest rates on this certificate of

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS