K3Occasionally a savings account may actually pay interest compounded continuously. For each deposit, find the interest earned if interest is compounded (a) semiannually, (b) quarterly, (c) monthly,(d) daily, and (e) continuously. Use 1 year = 365 days.Principal$1045(a) The interest earned if interest is compounded semiannually is $.(Do not round until the final answer. Then pund to the nearest cent as needed.)(b) The interest earned if interest is compounded quarterly is $.(Do not round until the final answer. Then round to the nearest cent as needed.)Rate1.6%(c) The interest earned if interest is compounded monthly is $.(Do not round until the final answer. Then round to the nearest cent as needed.).E(d) The interest earned if interest is compounded daily is $.(Do not round until the final answer. Then round to the nearest cent as needed.).Time3 years(e) The interest earned if interest is compounded continuously is $.(Do not round until the final answer. Then round to the nearest cent as needed.)80$4R%5&F5T6MacBook AirF6Y&N7F7U* 008-DIIFB1(9KF9O)OF10PF11+{[NextF1211delete

Formula for the future value is given as: F = P(1+R/m)t*m F: future valueP : principle valueR : Per…

← Occasionally a savings account may actually pay interest compounded continuously. For each deposit, find the interest earned if interest is compounded (a) semiannually. (b) quarterly, (c) monthly, (d) daily, and (e) continuously. Use 1 year = 365 days. Principal $1045 Rate 1.6% Time 3 years (a) The interest earned if interest is compounded semiannually is $. (Do not round until the final answer. Then pund to the nearest cent as needed.) (b) The interest eared if interest is compounded quarterly is $. (Do not round until the final answer. Then round to the nearest cent as needed.) (c) The interest earned if interest is compounded monthly is $. (Do not round until the final answer. Then round to the nearest cent as needed.) (d) The interest earned if interest is compounded daily is $ (Do not round until the final answer. Then round to the nearest cent as needed.) (e) The interest earned if interest is compounded continuously is $. (Do not round until the final answer. Then round to the nearest cent as needed.)

← Occasionally a savings account may actually pay interest compounded continuously. For each deposit, find the interest earned if interest is compounded (a) semiannually. (b) quarterly, (c) monthly, (d) daily, and (e) continuously. Use 1 year = 365 days. Principal $1045 Rate 1.6% Time 3 years (a) The interest earned if interest is compounded semiannually is $. (Do not round until the final answer. Then pund to the nearest cent as needed.) (b) The interest eared if interest is compounded quarterly is $. (Do not round until the final answer. Then round to the nearest cent as needed.) (c) The interest earned if interest is compounded monthly is $. (Do not round until the final answer. Then round to the nearest cent as needed.) (d) The interest earned if interest is compounded daily is $ (Do not round until the final answer. Then round to the nearest cent as needed.) (e) The interest earned if interest is compounded continuously is $. (Do not round until the final answer. Then round to the nearest cent as needed.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: K Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: The objective of the question is to find the interest rate required for a sinking fund to reach a…

Q: A sum of money invested at 12% interest, compounded quarterly, will triple in amount in…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: How much money must be deposited in a savings account each month to reach a goal of having $10,000…

A: Present value refers to the value that an amount of money today is worth more than the same amount…

Q: 1 You deposit $17,000 in a retirement account on your 25th birthday, and you plan to retire on your…

A: Here we calculate the following by using the given information , and conclude the answer so the…

Q: Compute the interest rate if future value (FV) = $11461, present value (FV) = $3959, and number of…

A: Compound interest is the interest computed on the principal and the interest accumulated over the…

Q: b) $4,500 at the end of each year for 15 years at 4.75% compounded annually.

A: The amount invested each year = $4500 Total number of years = 15 years The interest rate earned in…

Q: Suppose a certain manufacturer deposits $3, 000 at the beginning of each 3 month period for 8 years…

A: Given:Deposit at the beginning of each 3 months: $3,000Interest rate: 8% compounded…

Q: You purchase a car today using a loan of $19000o APR 6%. plan is to pay during 5 years with equal…

Q: Using the data given below, select the equation that will correctly calculate the future value of…

A: Dear student, kindly check the answer in the explanation box below.Explanation:Dear student, kindly…

Q: 6. Find the future value of RM10,000 which was invested for (a) 3 years at 6% compounded annually.…

A: ITEM 6To find the future value of the investments given the different compounding periods, we can…

Q: Calculate the future value for the following 3 problems Present Value Interest Rate Time (Years)…

A: Future Value takes into account the time value of money. It calculates the value of an asset at a…

Q: Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments…

A: Monthly PITI (Principal, interest, tax , insurance) = monthly PI + Monthly tax + monthly insurance…

Q: Compute the number of years (t) if future value (FV) = $13514, present value (FV) = $1186, and…

A: The formula for calculating the present value from the future value is :- PV = FV / ( 1+i)t

Q: 500 is invested in an account each month. nonthly, what is the account balance after 3

A: Compound interest is used to calculate loan or deposited amount. Given that, Starting amount is…

Q: Future Value of an Investment The newly opened Mario's Trattoria is expected to produce a continuous…

A: Disclaimer- “Since you have asked multiple questions, we will solve the first question for you as…

Q: If you want to have $100,000 in your saving account in ten years, how much do you need to deposit…

A: The compounded monthly means interest is calculated and added to the principal monthly, while…

Q: Some time ago, you put £500 into abank account for a "rainy day." Sınce then, the bank has been…

Q: you paid $3,100 to a bank to pay off a debt you borrowed 3 years ago with 12% annual interest rate.…

A: Present worth refers to the current value of an expected cash flow in the future based on the time…

Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% per…

A: The effective annual rate (EAR) is the real percent interest that a borrower or investor pays on a…

Q: Suppose that Rajiv borrows $50,000 at 5% per year to purchase equipment for his business. Complete…

A: Compound interest is the interest which is calculated on the initial principal, and it also includes…

Q: Consider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B…

A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and…

Q: (i) If $10,000 is needed in 12 years, how much should be deposited at the end of each year into an…

A: Given future value = 10000 $ Time = 12 years Interest rate = 5 % compounded annually

Question

K
3
Occasionally a savings account may actually pay interest compounded continuously. For each deposit, find the interest earned if interest is compounded (a) semiannually, (b) quarterly, (c) monthly,
(d) daily, and (e) continuously. Use 1 year = 365 days.
Principal
$1045
(a) The interest earned if interest is compounded semiannually is $.
(Do not round until the final answer. Then pund to the nearest cent as needed.)
(b) The interest earned if interest is compounded quarterly is $.
(Do not round until the final answer. Then round to the nearest cent as needed.)
Rate
1.6%
(c) The interest earned if interest is compounded monthly is $.
(Do not round until the final answer. Then round to the nearest cent as needed.).
E
(d) The interest earned if interest is compounded daily is $.
(Do not round until the final answer. Then round to the nearest cent as needed.).
Time
3 years
(e) The interest earned if interest is compounded continuously is $.
(Do not round until the final answer. Then round to the nearest cent as needed.)
80
$
4
R
%
5
&
F5
T
6
MacBook Air
F6
Y
&
N
7
F7
U
* 00
8
-
DII
FB
1
(
9
K
F9
O
)
O
F10
P
F11
+
{
[
Next
F12
11
delete

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Final Answer

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

(CALCULATOR) Marianne wants to accumulate $140 000.00 in an RRSP by making annual contributions of $3500.00 at the beginning of each year. If interest is 7.5% compounded daily, calculate how long she has to make contributions.
Maha borrowed SR 200,000 to purchase a new car. What is the annual interest rate if the loan is to be paid in 5 equal end of year payments of SR 50,000 starting 1 year from the loan date?
Compare the future worth of $2,500 for 5 years at 12% per year compounded monthly. How much interest is paid? a. F = $3,533 Ob. F = $3,633 c. F = $4,633 Od. F = $4,541
Given the cash flow below: Revenue,$ 2,500 2,500 2,500 2,500 year 1 3 4 Calculate the present value (P) and the future value (F) for the following scenarios: a) The interest rate is 6% compounded daily b) The interest rate is 6% compounded monthly c) The interest rate is 6% compounded semi-annually d) Compare the results and explain the effect of compounding periods on the present and future values
Student Loans Willie Wilson plans to borrow $36,627 at the beginning of each of his 4 years of college. He will repay the loan in 14 equal annual installments at the end of each year starting one year after he graduates. If the interest rate is 10.38%, how large will the installments be? Interest will accrue on Willie's loan while he is in college. Numeric Response
A problem on the midterm exam asked you to calculate the monthly payment on a $15,000 car loan at an interest rate of 9% compounded monthly to be repaid over 60 months, where 9% is the nominal annual interest rate. Some students incorrectly used 9% as the monthly interest rate. A monthly interest rate of 9% is equivalent to what effective annual interest rate? (a) Effective annual interest rate = 9% (b) Effective annual interest rate = 9% per month x 12 months per year = 108% (c) Effective annual interest rate = 9% per month ÷ 12 months per year 0.75% (d) Effective annual interest rate = (1+ effective monthly rate)12 – 1 = (1.09)12 – 1 = 181%
see pic
Consider a student loan of $12,500 at a fixed APR of 9% for 30 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
Fir a $5,000 loan repayment over 2 years at 12%. Find the monthly payment.
Elmo borrowed S30,000 from the Statler & Waldorf Bank at 12% APR, compounded monthly. The loan is to be repaid in equal monthly payments over a 5-year period. (No statements required for this question. Just find the numbers asked for) a. What is the monthly loan payment amount?
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $80,000 in a fund paying 3% per year, with monthly payments for 10 years PMT = $ Need Help? Watch It Read It
Suppose you take out a car loan of $15,000 with an interest rate of 15% compounded monthly. You will pay off the loan over 36 months with equal monthly payments.(a) What is the monthly interest rate?(b) What is the amount of the equal monthly payment?(c) What is the interest payment for the 15th payment?(d) What is the total interest paid over the life of the loan?