K Two accounts each begin with a deposit of $6000. Both accounts have rates of 4.6%, but one account compounds interest once a year while the other account compounds interest continuously. Make a table that shows the amount in each account and the interest earned after one year, five years, ten years, and 20 years. Click the icon to view some finance formulas. 1 year 5 years 10 years Compounded annually Compounded continuously Balance Interest Balance Interest 20 years (Round to the nearest dollar as needed)

K Two accounts each begin with a deposit of $6000. Both accounts have rates of 4.6%, but one account compounds interest once a year while the other account compounds interest continuously. Make a table that shows the amount in each account and the interest earned after one year, five years, ten years, and 20 years. Click the icon to view some finance formulas. 1 year 5 years 10 years Compounded annually Compounded continuously Balance Interest Balance Interest 20 years (Round to the nearest dollar as needed)

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

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Once per year Ritchie Rich deposits an amount of $800 in an account which pays 10% interest per year, compounded annually, with additional deposits of $800 continually made at the end of the year. If B, is the balance in the account, in dollars, immediately after Ritchie makes the nth deposit, then we can write B₁ = $800. (a) Complete the table to find the following. Report to the nearest $0.01. i) the balance, B, of the account on the day immediately after the second deposit. ii) the balance, B₁, of the account on the day immediately after the third deposit. iii) the balance, B₁, of the account on the day immediately after the fourth deposit 71 (Number of deposits) 1 2 OO B= $321158.22 (b) Suppose Ritchie makes 38 deposits. What is the balance of the account on the day immediately after the 38th deposit? 0 B$29923.47 B$29123.47 B= $264031.59 B, ($) $800 $ Number O B$291234.75 (It is more than $880.) $ Number S Number Q (c) Suppose Ritchie makes 438 deposits. Which is true about the…
A depositor opens a new savings account with $2000 at 2% compounded semiannually. At the beginning of year 3, an additional $3000 is deposited. At the end of four years, what is the balance in the account? i Click the icon to view some finance formulas. The balance in the account at the end of 4 years is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
You plan to withdraw the amounts given below over the next five years from a savings account that earns 9% interest compounded annually, how much do you need to deposit now? End of Year 1 $0.00 Year 2 $24,000.00, Year 3 $14,000.00 Year 4 $26,000.00 Year 5 $42,000.00
A bank pays 6% interest compounded semiannually. Use appropriate formula to find out how much should be deposited in $ now to yield an annuity payment of $900 at the beginning of each 6 months for 12 years
Calculate compound interest and effective rateSuppose $ 2,000 is deposited into a savings and loan account that pays 7.5% interest compounded semi-annually. Use compound interest to calculate the following:a. How much money will you have saved after 2 years?b. How much will be owed after 2 years?
Subject: acounting
Find the amount of interest paid on on a $800 Investment that earns 4.9% simple annual interest for 30 days. In this problem, use the Bankers' Rule, which stipulates that 1 year 360 days. Round to the nearest cent (two decimal places.) S
You are planning to start a business in 5 years. You have decided to deposit Shs. 400,000 in a fixed deposit account whose interest rate is 8% p.a. Required: Compute the approximate value in your account after the investing period if interest is compounded semi-annually.
You put $190 in the bank for 5 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 fifth year. Round your answers to 2 decimal places. Year Money in the bank 1 $fill in the blank 1 2 $fill in the blank 2 3 $fill in the blank 3 4 $fill in the blank 4 5 $fill in the blank 5 B. Use the future value of $1 table and verify that your answer is correct. Round your future value factor to three decimal places and final answer to 2 decimal places. $fill in the blank 6
= A bank features a savings account that has an annual percentage rate of r interest compounded quarterly. Tatiana deposits $9,000 into the account. The account balance can be modeled by the exponential formula A(t) = a (1 + 7-)kt, where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = 5.6% with k = (B) How much money will Tatiana have in the account in 7 years? Answer = $ 7. Round answer to the nearest penny. APY = = %. Round answer to 3 decimal places. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year).
Assuming a 5% (0.05) interest rate, $500 invested today in a savings account today will be worth $525 in one year. What will that amount be in 2 and 3 years, and what is the total interest you will earn at the end of three years. Refer to the video in the information page for assistance in calculating simple interest. Year 2: $445.78 Year 3: $335.29 Total Interest: $98.75 Year 2: $551.25 Year 3: $578.81 Total Interest: $78.31 Year 2: $114.49 Year 3: $122.50 Total Interest: $22.50 Year 2: $222.70
A bank customer saved 5000 PLN on the savings account. The deposit lasted for 2 years. For the first 6 months continuous interest rate method was used with the 4,5% nominal interest rate, for the next 9 months compound interest rate method was used, and during the last months simple interest rate method was used also with 4,5% nominal interest rate (after each change in the interest method, interest was added to the account balance). Please calculate what was the nominal interest rate in the second period if the profit from the deposit was 414,70 PLN after the whole 2 years period?

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