Bank pays 5 percent simple interest on its saving account, whereas Collar Bank pays 5 percent interest compounded annually.  [answer to 2 decimal places]  a)If you deposit $55123 today at Mirror Bank, what is account balance in 5 years? b)If you deposit $55123 today at Collar Bank, what is account balance in 5 years? c)Based on a) and b), which Bank offers a higher account balance in 5 years? (Mirror/Collar)  Why? (Interest earned only on the original principle/ interest earned in principle and on interest rec

Q: involving investments, mortgages, loans, and so on are based on either a fixed or a variable in used…

A: Simple interest is simple in nature that means no interest on interest is there but in compounded…

Q: of $56,000 in each bank, how much more money would you earn from your Second City Bank account at…

A: The future value of an investment forecasts the expected value of an investment at a given future…

Q: First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City…

A: First City Bank Interest rate = 7% simple interest Second City Bank Interest rate = 7% compounded…

Q: First City Bank pays 5 percent simple interest on its savings account balances, whereas Second City…

A: simple interest formula: A=p×1+rtwhere,A=amountP=principalr=ratet=time in years compound interest…

Q: None

A: Given information: Annual deposit (PMT) = $910 Number of year (n) = 6 Interest rate (i) = 4% or 0.04…

Q: First City Bank pays 7.5 percent simple interest on its savings account balances, whereas Second…

A: First City Bank  Interest Rate = 7.5% Simple Interest Rate   Second City Bank Interest Rate = 7.5%…

Q: You have just remembered that four years ago you placed $1,000 in a bank account. If the bank was…

A: PV x (1+r)n=FV

Q: You are comparing two banks. One bank is online and offers a savings account interest rate of 1.75%…

A: The annual percentage yield is the real rate of return that an investment earns over a period of…

Q: (a) To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9780. What…

A: It represents a short-term debt obligation that is backed by the Treasury Department of the United…

Q: Michael Perez deposited a total of $2000 with two savings institutions. Bank A pays interest at the…

A: Interest refers to the cost of borrowing money or the return earned on invested funds. When someone…

Q: compounded

A: Formula to calculate preset value: PV = FV/(1+r/n)^nt Where PV is the present value, FV is the…

Q: You have just deposited $3,000 in an unusual bank account that pays interest biannually (ance every…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Please correct answer and step by step solutions

A: Step 1: Calculate the total amount for Bank A (compound interest compounded monthly).Initial…

Q: Marcus is trying to decide which checking account to open.  Bank A's account pays 1.6%, compounded…

A: To compare the returns on two different accounts, we need to calculate the effective annual interest…

Q: First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City…

A: Simple interest is the additional amount that the bank pays for depositing a sum in the account. In…

Q: First National Bank charges 13.4 percent compounded monthly on its business loans. First United Bank…

A: The effective annual rate (EAR) is the annual interest rate that takes into account the effect of…

Q: Spartan Credit Bank is offering 5.8 percent compounded daily on its savings accounts. Assume that…

A: Given Information :Interest rate = 5.8% p.aDeposit amount = $ 5,500

Q: Second Union Bank pays 5 percent simple interest on its savings account balances, whereas Third…

A: In simple interest there is no interest on interest only simple interest is considered.

Q: Bank A pays 7% simple interest on its savings account balances. Bank B pays 5.5% interest compounded…

A: STEP 1 Simple interest is the amount of interest charged on a specific principal amount at a…

Q: The local bank is currently offering a new investment product, where deposits earn interest…

A: The FV of an investment refers to the cumulative value of its cash flows assuming that they grow at…

Q: A person has some money in his/her checking account (say $100) and five transactions each of 10, 20…

A: As per withdraw & deposit methods synchronization helps to establish a lock to the object and…

Q: Karen's Katering borrows $5,500, at 8.5% interest, for 220 days. If the bank uses the exact interest…

A: The objective of the question is to calculate the exact interest that the bank will collect on a…

Q: Straight bank loan. Right Bank offers EAR loans of 8.74% and requires a monthly payment on all…

A: APR is termed as the Annual Percentage Rate which is charged by any of the authorizing institutions…

Q: Bank of Vancouver pays 7 percent simple interest on its savings account balances, whereas Bank of…

A: Simple interest is an ordinary interest payble at equal amount over specified period over principal…

Q: Suppose you walk into a bank and want to make a 10-year deposit. Bank manager tells you that the…

A: Annual deposits = $10,000Period = 10 yearsInterest rate = 5%

Q: Often times, banks have special offers for new customers. Currently, Bank of America is offering new…

A: Future Value = Present Value (1 + r)n

Q: Your bank pays an interest rate quoted as 5.0% per annum compounded semi-annually. You invest $1,000…

A: Semi-annual interest rate (r) = 5%/2 = 2.5% Number of Semi-annual compounding (n) = 5 years x 2 = 10…

Q: Spartan Credit Bank is offering 6 percent compounded daily on its savings accounts. Assume that you…

A: Future Value (FV) is the value of an investment or cash flow at a specified future date, assuming a…