Finance. Suppose that $6,000 is invested at 3.8% annual interest rate, compounded monthly. How much money will be in the account in (A) 6 months? (B) 3 years?
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityUse the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Finance. Suppose that $7,700 is invested at 4.7% annual interest rate, compounded monthly. How much money will be in the account in (A) 3 months? (B) 8 years?
- Finance. Suppose that $4,000 is invested at 4.6% annual interest rate, compounded monthly. How much money will be in the account in (A) 6 months? (B) 6 years? (A) Amount after 6 months: $ (Round to the nearest cent.)Suppose you want to have $200 in an account after 5 years. If the account generates interest at a nominal rate of 9%, compounded quarterly, how much should you invest in the account now?Suppose a deposit of R dollars is made at the end of each year, and assume an APR of r% compounding continuously. (a) If we invest like this for 3 years, what is the value of the account after the third year? (b) If we are making these payments for 3 years, how much money must we invest today to cover the payments? (c) If we make these payments in perpetuity, find a formula which describes the amount of principal we must invest today to cover all future payments. (d) If we invest like this for three years, but instead use an account with an APR s% compounded weekly, determine s so that this second account has the same value as your answer in part (a) after three years.
- You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?4. If 10,000php is invested in account paying 6% compounded quarterly; A. How much will be in the account at the end of 5years? b. How much interest will it earn? C. Compare the interest it will earn if it is paid at simple interest rate.Suppose you have a k5000 bank deposits. The interest rate is 6% compounded quarterly for 1 year. What is the effective annual interest rate (EAR)?
- 1. (a) A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to double in this account? (b) An investment offers to double your money in 5 years, what the APR are you being offered?Annuity: 3. Suppose you invested $1000 per quarter over a 2-year period. If money earns an annual rate of 6.5% compounded quarterly, how much would be available at the end of the time period. How much is the interest earned?How much money should be deposited today in an account that earns 7% compounded semiannually so that it will accumulate to $9000 in three years? a Click the icon to view some finance formulas. ..... The amount of money that should be deposited is $ (Round up to the nearest cent.) Formulas In the provided formulas, A is the balance in the account after t years, P is the principal investment, r is the annual interest rate in decimal form, n is the number of compounding periods per year, and Y is the investment's effective annual yield in decimal form. nt A A = P 1+ P = A =Pet Y = - 1 nt 1+ Print Done