Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of 6% convertible monthly. Danielle also opens a bank account with 10000 at the same time as Lucas, but it grows at an annual nominal interest rate of 3% convertible semiannuallly.For each account, interest is credited only at the end of each interest conversion period.Calculate the number of months required for the amount in Lucas’ account to be at least double the amount in future months. a. 276 b. 277 c. 282 d. 288 e. 290
Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of 6% convertible monthly. Danielle also opens a bank account with 10000 at the same time as Lucas, but it grows at an annual nominal interest rate of 3% convertible semiannuallly.For each account, interest is credited only at the end of each interest conversion period.Calculate the number of months required for the amount in Lucas’ account to be at least double the amount in future months. a. 276 b. 277 c. 282 d. 288 e. 290
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
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Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of 6% convertible monthly. Danielle also opens a bank account with 10000 at the same time as Lucas, but it grows at an annual nominal interest rate of 3% convertible semiannuallly.For each account, interest is credited only at the end of each interest conversion period.Calculate the number of months required for the amount in Lucas’ account to be at least double the amount in future months.
a. 276
b. 277
c. 282
d. 288
e. 290
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