Bella deposits $6400 in a savings account at a bank that offers interest of 1.8% on such accounts. What is the value of the money in her savings account in two year's time? Select one: a. $6,630.4 b. $6,632.5 C. $8,911 O d. d. $6,505.2 <

Bella deposits $6400 in a savings account at a bank that offers interest of 1.8% on such accounts. What is the value of the money in her savings account in two year's time? Select one: a. $6,630.4 b. $6,632.5 C. $8,911 O d. d. $6,505.2 <

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

Related questions

Q: 26 (b) Samuel Norris deposited $450 in a new regular savings account that earns 4% interest…

A: The question is related to compounded interest quarterly. FV = P (1 + r)n

Q: 7. On April 1, Michael Reeves deposited a refund check for $240.85 in a savings account at Northern…

A: Simple interest is concept where the interest is never capitalized to the original loan/investment…

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: Lorna deposited $1,600, at the beginning of every six months for 10 years, in an account at her…

A: Future value is a value of an investment or asset on a specific date in the future based on growth…

Q: Sherry deposits $1000 in a bank account that pays 6% annual interest compounded monthly. She then…

A: Here,ParticularsValuesPresent value (PV) $1,000.00Interest rate6.00%Monthly deposits (PMT) $…

Q: 24. Francois DuFresne deposits $350.00 in a savings account. The account an annual interest rate of…

A: Simple Interest(SI) is the value earned on a principal(P) over a period(T) at a particular rate of…

Q: Darcy holds a 200 day note from Brenda. This note was given by Brenda to Darcy since the former ow…

Q: Abby Mia wants to know how much must be deposited in her local bank today so that she will receive…

A: The formula to compute present value is as follows:

Q: 6. Jasper Brown deposited $743.20 in a savings account at the Suburban Trust Com- pany on May 1. At…

Q: 2. Janine has two choices for paying off her credit card balance. She can make payments of $186 per…

A: Credit cards allow the cardholder to pay for their purchases based on the promise that they will be…

Q: Melisandre deposits $500 in an account paying an effective monthly interest rate 0.62708%. Kobe…

A: Present Value: The present value (PV) is the present sum of the future payments. The future…

Q: A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is…

A: Future value of an amount is calculated as follows: FV = PV*(1+r)t Where, FV = Future value of…

Q: Q2.3: Abigail set up a savings fund for his son's education so that he would be able to withdraw…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: Armita deposits $150 in an account paying a nominal interest rate 9.900% compounded semi- annually.…

A: Interest rate refers to the rate which is charged by the lender from the borrower on the loan amount…

Q: 8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25.…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Gabrielle Patterson deposited $3,600 in a new savings account. She made no other deposits or…

A: Interest is calculated in two ways compound interest and simple interest.

Q: Who will have more money in their account after 20 years? How much more? x within your choice.

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Suppose Dina is choosing how to allocate her portfolio between two asset classes: risk-free…

A: Here,CombinationFraction of Portfolio in Diversified Stocks (%)Average Annual Return (%)Standard…

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: You Save Bank has a unique account. If you deposit $7,250 today, the bank will pay you an annual…

A: In this case, the bank uses different interest rates for different periods, so we'll need to apply…

Q: Chandrika deposits $500 in an account paying an effective quarterly interest rate 2.01875%. Muhammad…

A: Present Value: The present value (PV) is the present sum of the future payments. The future…

Q: Use Worksheet 5.2 and Exhibit 5.6. Emma Sanchez is currently renting an apartment for $575 per month…

A: There is no direct answer about whether renting or owning a property is preferable. The decision is…

Q: Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed…

A: Given: Principal “P” = $500 Simple rate = 9% Number of years “t” = 11

Q: Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with…

A: Given: Effective interest rate = 8.9% Future value = $15,000 Years = 2

Q: Peter has $33,550 in his savings account. If he withdraws $5,000 at the end of each year, he will…

A: Present Value (PV) of Savings Account = $33,550Annual Withdrawal (P) = $5,000Number of years (n) =…

Q: If you deposit $3,500 monthly into a savings account which earns 8.25% interest rate compounded…

A: The future value of annuity refers to the future value of a series of payments. The future value can…

Q: 13. Alec Tomita's savings account statement is shown below. What is his new balance? Previous…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Q3 : Starting on the day Anna was born, her mother has invested $40 at the beginning of every month…

A: A series of regular fixed periodic payments made at each interval is annuity. The broad…

Q: a) Liam deposits $4,500 into his savings account today earning interest of 3% p.a. compounded…

A: We need to use compound interest formula to solve problem a. A =P(1+i)n Where A =Compound amount…

Q: Banking. Arlo has an income of $55,000 that he is willing to spend over a year. If his bank…

A: Cash Management refers to make number and amount of withdrawals efficiently to make opportunity cost…

Q: Assume simple interest and find the rate of interest paid by the bank.

A: The amount deposited in the bank is $6,400. The amount received is $6,453.33 The interest paid by…

Q: Suppose Zoe had deposited another $900 into a savings account at a second bank at the same time. The…

A: To calculate the amount of money Zoe will have in her savings account at the second bank in 13…

Q: how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b.…

A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed…

Q: 2. Ms. Perez wants to invest in a savings account with interest rate of 9% per year. She decided to…

A: Annual payment (P) = Php 40,000 Number of annual payments (n) = 10 Interest rate (r) = 9%

Question

Bella deposits $6400 in a savings account at a bank
that offers interest of 1.8% on such accounts. What is
the value of the money in her savings account in two
year's time?
Select one:
a. $6,630.4
b. $6,632.5
C. $8,911
O d.
d.
$6,505.2
<

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

Given Principal P = $ 6400

VIEW

So FV =6400(1.018)^2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

3. the math of interest. please indicate if you are unsure or totally sure about the answer
Interest Earned. On June 1, Mia deposited $2,700 in an MMDA that pays 4% interest. On October 31, Mia invested $1,300 in a three-month CD that pays 2.81%. At the end of the year, how much i interest will Mia have eamed, assuming she hasn't taken anything out of the money market deposit account? Assuming she hasn't taken anything out of the money market deposit account, the amount of interest Mia will have earned is $. (Round to the nearest cent)
Grandpa puts $50,000 into a bank account for you earning 3% compounded monthly. How much will you have in the account after 5 years if you don't make Grandpa mad enough to take the money back before then? Select an answer and submit. For keybard navigation, use the up/down arrow keys to select an answer. a b $57,963.70 $58,659.93 C $58,080.841 d $62,567.12
Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past year. The A.P.R. on her credit card for the past year was 19.99%. Approximately how much interest would Louisa have paid over the course of the year? She would have paid interest charges of $2,000. She would have paid interest charges of $20. The credit card company would have paid Louisa $20. She would have paid interest charges of $200.
incorrect, 1.3.51 A mother wants to invest $6 comma 000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $ 360.00 comma how much money was invested in the CD account? The total interest earned after one year is $360.00 . How much money was invested in the CD account? $
Ever since your first birthday, your parents have been depositing $1,000 into a college savings account on every one of your birthdays. The account pays 9% interest annually. Immediately after your parents make the deposit on your 18th birthday, the amount of money in your savings account will be closest to which of the following? OA. $41,301.34 OB. $49,561.61 OC. $24,780.80 OD. $57,821.88
can you explain how they got answer ?
pm.3
Armita deposits $400 in an account paying a nominal interest rate 9.625% compounded quarterly. Bob deposits $1,200 in an account paying a nominal interest rate ¡(26). After 17 years they have the same amount in their accounts. What is i(26)? a. 2.745%* b. 2.898% c. 3.020% d. 3.050% e. 2.806%
If you deposit $3,500 monthly into a savings account which earns 4.25% interest rate compounded annually, how much will you have after 10 years of saving?a. $598500b. S510141 c. S636810 d. S522225 e. S42512
Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Zoe deposited $900 in a savings account at her bank. Her account will earn an annual simple interest rate of 7%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years? O $967.41 $2,168.86 O $163.00 O $1,719.00 Now, assume that Zoe's savings institution modifies the terms of her account and agrees to pay 7% in compound interest on her $900 balance. All other things being equal, how much money will Zoe have in her account in 13 years? O $1,719.00 O $963.00 O $2,168.86 O $151.82
James deposited $500 in his bank at 4.5% for 90 days. Use the simple interest formula to calculate the amount of interest James will earn using exact interest. Calculate the future value of the deposit.

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

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

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