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.) Mystic Four Rivers Better deal Interest

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.) Mystic Four Rivers Better deal Interest

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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Skippy wants to have $16,000.00 in 7 years. His bank is offering an account that earns 2% compounded monthly. How much does he need to deposit to reach his goal? Round your final answer up to the nearest cent. Assume no additional deposits or withdrawals are made after the initial deposit. Principal
Dave invests $3,700 in a savings account at his local bank which gives 3.296 simple annual interest. He also invests $3,000 in an online savings account which gives 5.9% simple annual interest. After 15 years, which one will have earned more interest, and how much more interest will it have earned, to the nearest dollar? (Use I = Prt) The online account has $879 more than the local bank b. The online account has $179 more than the local bank C. The local bank has $776 more than the online account. d. The local bank: has $345 more than the ontine account.
You are down on your luck and need a loan, quick! You locate Mr. Loa N. Shark who advertises weekly loans for “an almost imperceptibly small rate” of only 3%, prepaid at the time of the loan. You sign over your federal tax refund for $1,000 to Mr. Shark, with proof that it is correct and will be forth coming from the IRS in one week. Solve, a. How much money does Mr. Shark hand you? b. How much weekly interest are you really paying? c. What is the nominal annual interest rate? d. What is the effective annual interest rate?
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Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Zoe deposited $900 in a savings account at her bank. Her account will earn an annual simple interest rate of 7%. If she makes no additional deposits or withdrawals, how much money will she have in her account in 13 years? O $967.41 $2,168.86 O $163.00 O $1,719.00 Now, assume that Zoe's savings institution modifies the terms of her account and agrees to pay 7% in compound interest on her $900 balance. All other things being equal, how much money will Zoe have in her account in 13 years? O $1,719.00 O $963.00 O $2,168.86 O $151.82
Formulate a system of equations for the situation below and solve. Michael Perez has a total of $2900 on deposit with two savings institutions. One pays interest at the rate of 6% / year, whereas the other pays interest at the rate of 8% / year. If Michael earned a total of $212 in interest during a single year, how much does he have on deposit in each institution? at 6%/year $ at 8%/year $
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Jane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers Bank. Mystic offers a 12% rate compounded quarterly, and Four Rivers offers 14% compounded semiannually. Jane has $40,000 to invest and expects to withdraw the money at the end of five years. The better deal is: Four Rivers because she will earn about $6,442 more. Four Rivers because she will earn about $6,523 more. Four Rivers because she will earn about $4,000 more. Four Rivers because she will earn about $20,000 more.
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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.)
If Bob borrowed $30,000, the bank would charge an interest rate of 4% p.a. compounded semi-annually. The loan and interest will have to be repaid to the bank over the 5 years with equal payments needing to be made at the beginning of each period. If Bob borrows the money from this bank, what will be the semi-annual payments that he will make? What is the total cash repayment for the loan over the period? Please dont provide answer in image format thank you
Enzo borrowed $4800 from the bank for 18 months. The bank discounted the loan at 4.7%. How much was the interest? (State your result to the nearest penny). How much did Enzo receive from the bank? ( State your result to the nearest penny) What was the actual rate of interest? (State your result to the nearest hundredth of a percent.) Need only handwritten solution only (not typed one).

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