ou currently have $5,200. First United Bank will pay you an annual interest rate of 8.7, while Second National Bank will pay you an annual interest rate of 9.8. How many fewer years must you wait for your account value to grow to $12,100 at Second National Bank? Multiple Choice .99 years 1.01 years 1.09 years 1.23 years 1.31 years

ou currently have $5,200. First United Bank will pay you an annual interest rate of 8.7, while Second National Bank will pay you an annual interest rate of 9.8. How many fewer years must you wait for your account value to grow to $12,100 at Second National Bank? Multiple Choice .99 years 1.01 years 1.09 years 1.23 years 1.31 years

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

See similar textbooks

Similar questions

You put $600 in the bank for 3 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
You put $250 in the bank for S years at 12%. 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. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Old Time Savings Bank pays 6.50% interest on Its savings account. If you deposit $1,000 In the bank and leave it there: a. How much interest wil you earn in the first year? (Round your answer to 2 decimal places.) Finst year interest b. How much interest will you earn in the second year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Second year interest c. How much interest will you earn in the tenth year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Tenth year interest
Bank A pays 7% simple interest on its savings account balances. Bank B pays 5.5% interest compounded annually. If you deposit $15,000 in both banks, a. How many years will it take for your balance to double in Bank A? b. What is the amount of interest earned in each bank at the end of 10 years? Which bank would you choose to open the savings account?
Your credit card charges an APR of 29% on your balance. Interest is compounded on a daily basis, 365 days a year. If you made the minimum payment of $150 per month on your credit card balance, how long will it take you to pay off a $5,000 balance? Multiple Choice 5.82 years 2.98 years 9.56 years 35.73 years 6.61 years Show all the calculation steps and formulas if necessary
A person wishes to get 400$ at the end of third year and 600$ at the end of fifth year, if rate of interest is 12% how much he has to deposit in the bank today? Select one: O a. 650$ b. 625$ O c. 620%
You Save Bank has a unique account. If you deposit $7,250 today, the bank will pay you an annual interest rate of 4 percent for 5 years, 4.6 percent for 4 years, and 5.3 percent for 8 years. How much will you have in your account in 17 years? O $12,124.78 O $12,982.10 O $15,960.94 O $14,12.28 O $15,131.60
Old Time Savings Bank pays 4% interest on its savings accounts. If you deposit $1,600 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the 10th year?
3. Compound interest Old Time Savings Bank pays 4% interest on its savings account. If you deposit $1,000 in the bank and leave it there: a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the tenth year?
How much money should you deposit in your account now if you are looking to have $7000 after 5 years. The bank pays 7% interest rate per year? Select one: O a. P= $6990.90 O b. P= $9990.90 O c. P= $4990.90 O d. P= $3374.48
Siyles Assume twwo banks have different offers to take a lone. Where the amount will be compound monthly. How much money you must pay on 10 years. Bank A Bank B Loan 75,000 5.25% 25,000 Interest Rate 5% 1. Calculate the monthly compounded amount for Bank A and B algebraically. 2. Calculate the monthly compounded amount for Bank A and B using MS excel 3.Decide which bank you will select and why. 4. find the annual rate of interest, compounded quartile will money double in 4 years?