First Simple Bank pays 8.9 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First Simple Bank over an investment horizon of 8 years?
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First Simple Bank pays 8.9 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First Simple Bank over an investment horizon of 8 years? |
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.First simple bank pays 6.4 percent simple interest on its investment accounts. If first complex bank pays pays interest on its accounts compounded annually, what rate should the bank set if it wants to match First simple bank over an investment horizon of 10 years?
- Vanscoy Bank pays 6.6% simple interest on its investment accounts. If Vade Bank pays interest on its accounts compounded annually, what rate should the bank set if it wants to match Vanscoy Bank over an investment horizon of 8 years?If a bank pays 6 percent interest compounded annually on a$1,000deposit, what will be the value of this deposit at the end of 10 years? If another bank pays 6 percent interest on the same$1,000deposit but compounds interest quarterly, what will be the value of this deposit at the end of 10 years? What is the effective annual interest rate being paid?A bank is negotiating a loan. The loan can either be paid off as a lump sum of $140,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 10%, what annual payments should be made so that both forms of payment are equivalent? A.
- A bank promises to quadruple your investment over a period of 15 years based on semi-annual compounding. What is the stated annual interest rate on this investment?Suppose that a person deposits $500 in a savings account at the end of each year, starting now, for the next 12 years. If the bank pays 8% per year, compounded annually, how much money will accumulate by the end of the 12-year period? Repeat Problem for an interest rate of 6.25% per year, compounded annually?Standard Chartered Bank Berhad pays 7 percent annual interest on its fixed deposit account, whereas UOB pays the same rate compounded monthly. If you depositedRM5,000 in each bank, identify the total return of investment you will receive at the end of 8 years.
- CNB, Inc. will deposit $25,000 into a money market account at the end of each year for the next eight years. How much will accumulate by the end of the eighth and final payment if the account earns 8% interest?What lump sum of money must be deposited into a bank account at the present time so that $500 per month can be withdrawn for five years, with the first withdrawal scheduled for six years from today? The interest rate is 0.75% per month.CBG pays 10 percent per annum simple interest on its savings account balances, GCB pays 8 percent interest compounded annually whereas DB pays 7 percent interest compounded quarterly. If you made a GHȼ5,000 deposit in each bank, how much more or less money would you earn from DB account than : i. CBG account at the end of 10 years? ii. GCB account at the end of 10 years?
