a4 Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 16% interestcompounded semiannually. Four Rivers offers 12% interest compounded quarterly. Melvin has $11,300 to invest. He expects towithdraw the money at the end of 10 years.Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.)Note: Do not round intermediate calculations. Round your answers to the nearest cent.InterestMysticFour RiversBetter deal

Step 1: Determine the formula to useThe future value of an investment with compound interest can be…

Answered: Melvin Indecision has difficulty…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $10,000 to invest. He expects to withdraw the money at the end of 4 years.Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank, Mystic offers 20% interest compounded semiannually. Four Rivers offers 16% Interest compounded quarterly. Melvin has $11,500 to invest. He expects to withdraw the money at the end of 5 years. Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answers to the nearest cent.) Four Rivers Better deal Mystic Interest
Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $10,000 to invest. He expects to withdraw the money at the end of 4 years. Calculate the interest earned at the end of Melvin's investment period at each bank. Identify which bank gives him the better deal? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Answer is complete but not entirely correct. Four Rivers $15,050.00 Better deal Mystic Bank Interest $ Mystic 16,937.50
melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 9% interest compounded semiannually. Four Rivers offers 7% interest compounded quarterly. Melvin has $10,200 to invest. He expects to withdraw the money at the end of 6 years. Calculate the interest earned at the end of Melvin's investment period at each bank. Identify which bank gives him the better deal? (Do not round intermediate calculations. Round your answer to the nearest cent.)
Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 13% interest compounded semiannually. Four Rivers offers 12% interest compounded quarterly. Melvin has $11,600 to invest. He expects to withdraw the money at the end of 6 years. Calculate the interest earned at the end of Melvin's investment period at each bank. Identify which bank gives him the better deal? (Do not round intermediate calculations. Round your answer to the nearest cent.) Interest Mystic Four Rivers Better deal
1
Tony Ring wants to attend Northeast College. He will need $75,000 4 years from today. Assume Tony's bank pays 12% interest compounded semiannually. What must Tony deposit today so he will have $75,000 in 4 years? (Use the Table 12.3 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. X Answer is complete but not entirely correct. Amount to be deposited $ 47,056 X
Tony Ring wants to attend Northeast College. He will need $65,000 4 years from today. Assume Tony's bank pays 12% interest compounded semiannually. What must Tony deposit today so he will have $65,000 in 4 years? (Use the Table 12.3 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount.
If your uncle borrows $70,000 from the bank at 12 percent interest over the ten-year life of the loan. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What equal annual payments must be made to discharge the loan, plus pay the bank its required rate of interest? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. How much of his first payment will be applied to interest? To principal? (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Tony Ring wants to attend Northeast College. He will need $50,000 6 years from today. Assume Tony's bank pays 6% interest compounded semiannually. What must Tony deposit today so he will have $50,000 in 6 years? (Do not round intermediate calculations. Round your answer to the nearest cent.) Amount to be deposited
(b) Peter has $10,000 that he can deposit in any three savings accounts for a 3- year period. Bank A compounds interest on an annual basis, Bank B compounds interest twice each year, and Bank C compounds interest each quarter. All three banks have a stated annual interest rate of 4%. What amount would Peter have at the end of the third year, leaving all interest paid on deposit, in each bank? On the basis of your findings, which bank should Peter choose? Why? ( 12)
Otis Hopkins recently graduated from college and is evaluating two credit cards. Card A has an annual fee of $75 and an interest rate of 9 percent. Card B has no annual fee and an interest rate of 16 percent. Assuming that Otis intends to carry no balance and to pay off his charges in full each month, which card represents the better deal? If Otis expected to carry a significant balance from one month to the next, which card would be better ? Explain.

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