Please do #6 thank you ! 4:50 4Problem 6: You are trying to explain to a friend the power of compound interest. So you use thefollowing example: You will invest $500 into two bank accounts which each pay 6% interest per year,but the first (Account A) pays simple interest and the second (Account B) pays the interest compoundedyearly.a) How much is in each account after 3 vears?b) Use the table below to demonstrate the difference between simple and compound interestBANK ACCOUNT AAmount in AccountBẠNK ACCOUNTBAmount in AccountS500YearYear3Problem 7: Many people struggle over the decision of acquiring a vehicle. Usually the three mainchoices involve buying a used vehicle, buying a new vehicle or leasing a new vehicle.a) In the table below provide two positive aspects (pros) and two negative aspects (cons) for each of theoptions.Buying UsedBuying NewLeasing NewProsConsb) You own a car that consumes diesel fuel at a rate of 6.7L/100km. On a 2500km trip to the East Coastyou estimate that the average fuel price will be $0.93/L. What willl be your estimated fuel cost to drivethe 2500km trip?

Simple interest is when the interest is charged only on the principal amount. The formula of the…

Problem 6: You are trying to explain to a friend the power of compound interest. So you use the following example: You will invest $500 into two bank accounts which each pay 6% interest per year, but the first (Account A) pays simple interest and the second (Account B) pays the interest compounded yearly. a) How much is in each account after 3 years? b) Use the table below to demonstrate the difference between simple and compound interest BANK ACCOUNT A Amount in Account S500 BANK ACCOUNTB Amount in Account S500 Year Yer

Problem 6: You are trying to explain to a friend the power of compound interest. So you use the following example: You will invest $500 into two bank accounts which each pay 6% interest per year, but the first (Account A) pays simple interest and the second (Account B) pays the interest compounded yearly. a) How much is in each account after 3 years? b) Use the table below to demonstrate the difference between simple and compound interest BANK ACCOUNT A Amount in Account S500 BANK ACCOUNTB Amount in Account S500 Year Yer

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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QUESTION 3 Suppose you deposit $2.500 in a CD paying 8% interest, compounded every other month. How much will you have in the account after 15 years? Round your answer to the nearest cent. below is an example how to do problem mple 4 A certificate of deposit (CD) is a savings instrument that many banks offer. It usually gives a higher interest rate, but you cannot access your investment for a specified length of ime. Suppose you deposit $3000 in a CD paying 6% interest, compounded monthly. How much will you have in the accbunt after 20 years? In this example, Pa-$3000 1=0.06 -12 the initial deposit 6% annual rate 12 months in 1 year since we're looking for how much well have after 20 N=20 years 0.06 So P 3000 1+ 12 3D%2993061(round your answer to the nearest penny) %3D Let us compare the amount of money earned from compounding against the amount you would carn from simple interest Yars Simple Interest 6% compounded (S15 per month)monthly 0.5% each month 33900 $4800 $5700 $4046 55…
QUESTION 3 If you deposit today 11,445.85 in an account earning 8% compound interest, for how long should you invest the money in order to earn 12,488.36 (profit)?
Q A friend asks to borrow $55 from you and in return will pay you $58 in one year. If your bank is offering a 6% interest rate on deposits and loans: How much would you have in one year if you deposited the $55 instead? How much money could you borrow today if you pay the bank $58 in one year? Should you loan the money to your friend or deposit it in the bank?
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QUESTION 5 You wish to have $4,000 in 2 years to purchase a new entertainment system. How much money (to the nearest dollar) should you deposit each quarter into an account paying 8% compounded quarterly? Summarize the information provided, stating the interest rate in a decimal form. PN = 4000 r = 0.08 N = 2 k = 4 Identify the formula you will to solve by writing the letter of the formula here: use A. A=P.(1+rt) В. P. = P.1+ rNk 1+ С. PN = D. P. -[1+ Solve the problem and give your answer here:
Hi can you help me on my assignment? Kindly answer and show your solution please, i badly needed it .
Question 4.11 David can receive one of the following two payment streams: (i) 100 at time 0, 200 at time n years, and 300 at time 2n years 600 at time n years The present values of the two payment streams are equal. You are given that the annual force of interest is 12.21%. Calculate n. A 8.0 B 8.5 C 9.0 After 5 years, the value in each account is the same. Calculate 8. A 2.56% B 2.59% Question 4.14 Suzie deposits $200 into an account that earns an annual simple interest rate of 5%. At the same time, John deposits $220 into an account that earns a constant force of interest of 8. D 9.5 C 2.65% E 10.0 D 2.73% E 2.97%
Question Help ▼ You plan to deposit $800 in a bank account now and $500 at the end of the year. If the account earns 3% interest per year, what will be the balance in the account right after you make the second deposit? The balance in the account right after you make the second deposit will be $ (Round to the nearest dollar.) Enter your answer in the answer box.
Question 5.A bank has borrowing needs at timeT >0. Show that by combining an FRAtrade today with a libor loan at timeT, the bank can today lock in its interest cost forthe periodTtoT+α. Does the borrowing bank need to buy or sell the FRA to do this?What is the fixed rate that the bank locks in?
Suppose you borrow from a bank $1,756.06 today (t=0). You agree to pay back $3,637.64 in 4 years (t=4). The interest rate (%) that the bank charge you is closest to ________%. Input your answer without the % sign and round your answer to two decimal places.
4. If you know the simple interest due on a P10 000 loan, explain how you can use that figure to calculate the simple interest due on a P50 000 loan for the same time period and the same interest rate. 5. If the principal of a loan is doubled but the time period and interest rate remain the same, how many times as large is the simple interest due on the loan? 6. If the principal of a loan is tripled but the time period and interest rate remain the same, how many times as large is the simple interest due on the loan?