Sixty monthly deposits are made into an account paying 12% nominal interest compounded monthly. If the objective of these deposits is to accumulate $180,000 by the end of the fifth year, what is the amount of each deposit? Choose the correct answer below. O A. $3,000 B. $2,196 C. $2,227 O D. $2,438 O E. $2,696
Sixty monthly deposits are made into an account paying 12% nominal interest compounded monthly. If the objective of these deposits is to accumulate $180,000 by the end of the fifth year, what is the amount of each deposit? Choose the correct answer below. O A. $3,000 B. $2,196 C. $2,227 O D. $2,438 O E. $2,696
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
![Sixty monthly deposits are made into an account paying 12% nominal interest compounded monthly. If the objective of these deposits is to accumulate $180,000 by
the end of the fifth year, what is the amount of each deposit?
Choose the correct answer below.
A. $3,000
B. $2,196
O C. $2,227
O D. $2,438
O E. $2,696](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd574c39-83f7-44d4-bc6a-ea87e2e8df07%2Fa58fc1b9-88b7-4a33-a6f0-1c41528398f7%2F5u2xpif_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sixty monthly deposits are made into an account paying 12% nominal interest compounded monthly. If the objective of these deposits is to accumulate $180,000 by
the end of the fifth year, what is the amount of each deposit?
Choose the correct answer below.
A. $3,000
B. $2,196
O C. $2,227
O D. $2,438
O E. $2,696
![Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances
and APRS: Card 1, $4,700, 21%; Card 2, $5,500, 25%; and Card 3, $3.100, 19%. Interest compounds monthly on all loan balances. A credit card loan consolidation
company has captured Mary's attention by stating they can save Mary 24% per month on her credit card payments. This company charges 17.5% APR. Is the
company's claim correct? Assume a 10-year repayment period.
Mary's current minimum monthly payments are $ (Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd574c39-83f7-44d4-bc6a-ea87e2e8df07%2Fa58fc1b9-88b7-4a33-a6f0-1c41528398f7%2Fdfdf8re_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mary's credit card situation is out of control because she cannot afford to make her monthly payments. She has three credit cards with the following loan balances
and APRS: Card 1, $4,700, 21%; Card 2, $5,500, 25%; and Card 3, $3.100, 19%. Interest compounds monthly on all loan balances. A credit card loan consolidation
company has captured Mary's attention by stating they can save Mary 24% per month on her credit card payments. This company charges 17.5% APR. Is the
company's claim correct? Assume a 10-year repayment period.
Mary's current minimum monthly payments are $ (Round to the nearest cent.)
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
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!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education