Janelle Carter deposited $9,960 in the bank on January 1, 2000, at an interest rate of 12% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar. $fill in the blank 1
The following situations involve the application of the time value of money concept. Use the full factor when calculating your results.
Use the appropriate present or future value table:
FV of $1, PV of $1, FV of
1. Janelle Carter deposited $9,960 in the bank on January 1, 2000, at an interest rate of 12% compounded annually. How much has accumulated in the account by January 1, 2017? Round to the nearest whole dollar.
$fill in the blank 1
2. Mike Smith deposited $22,360 in the bank on January 1, 2007. On January 2, 2017, this deposit has accumulated to $69,447. Interest is compounded annually on the account. What rate of interest did Mike earn on the deposit? Round to the nearest whole percent.
fill in the blank 2 %
3. Lee Spony made a deposit in the bank on January 1, 2010. The bank pays interest at the rate of 12% compounded annually. On January 1, 2017, the deposit has accumulated to $14,200. How much money did Lee originally deposit on January1, 2010? Round to the nearest whole dollar.
$fill in the blank 3
4. Nancy Holmes deposited $6,190 in the bank on January 1 a few years ago. The bank pays an interest rate of 11% compounded annually, and the deposit is now worth $17,576. How many years has the deposit been invested? Round to the nearest whole year.
fill in the blank 4 years
Compound Interest is calculated by multiplying the initial principal amount by one plus the annual interest rate raised to the number of compound periods minus one.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
