Suppose you invest $19,640.00 into an account earning an interest rate of 2.399% compounded continuously for 3 year(s) and thereafter earning aninterest rate of 3.935% compounded weekly. How much money is in the account after 10 years?The amount in the account is $Hint:

Future value of continuous compounding = Present Value *e^(rate*Term)

Suppose you invest $19,640.00 into an account earning an interest rate of 2.399% compounded continuously for 3 year(s) and thereafter earning and interest rate of 3.935% compounded weekly. How much money is in the account after 10 years? The amount in the account is $ Hint:

Suppose you invest $19,640.00 into an account earning an interest rate of 2.399% compounded continuously for 3 year(s) and thereafter earning and interest rate of 3.935% compounded weekly. How much money is in the account after 10 years? The amount in the account is $ Hint:

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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Similar questions

A monthly deposit of $300 is put into an account earning 5% interest compounded monthly. Round to the nearest cent. How much will be in the account after 30 years? $ What is the total amount of deposits? $ What is the total interest earned
2) If you deposit $3500.00 into a CD paying 1.5% interest compounded quarterly, find the account balance after the following amount of years: dp How many years will it take for your money to double? 1 2 5 10
You think you will be able to deposit $4,000 at the end of each of the next threeyears in a bank account paying 8 percent interest.▪ You currently have $7,000 in the account.▪ How much will you have in three years?▪ How much will you have in four years?
Suppose you have $8,675,309 to deposit into a savings account for one year. The bank lets you choose whether you want 12% compounded annually interest, or 12% compounded monthly interest. Is 12% given annually the same thing as 1% given monthly? Why or why not?
How would you need to deposit in an account now in order to have $3000 in the account in 5 years? Assume the account earns 7% interest compounded monthly.
You currently have $9,200 in an account with an interest rate of 7.5% per year compounded monthly. You want to withdraw all your money when it reaches $17,480. In how many years will you be able to withdraw all your money? Round your answer to 1 decimal place.
Suppose that $850,000 is invested in a savings account paying 5.25% interest per year. (Round answers to nearest hundredths or two decimal places.) a) Find the amount in the account after 11 years if interest is compounded monthly. 1 b) Find the amount in the account after 11 years if interest at continuous compound interest. c) How much interest was earned from continuous compounding in the 11 years? d) How long will it take for the amount in the account to grow to $2,000,000 if interest is compounded quarterly?
??
Compute and compare the following interests situations if you deposit $2500 into an account with 3.5% interest for 10 years. 20) The account pays simple interest. 21) The account pays compounding interest monthly. 22) The account pasy continuously compounding interest. 23) How much difference is there between the three different types of interest? Explain.
You plan to deposit $5, 706 into a savings account paying 8% interest compounded quarterly. How much will be in your account - assuming no withdrawals - after three years?
2. If you want to have $22,327 in fifteen years, how much do you need to deposit in a bank account today? Assume that the annual interest rate is 10% compounded annually. Round your answer to the nearest one dollar.
You deposit $100 each month into an account earning 4% interest compounded monthly. a) How much will you have in the account in 15 years? b) How much total money will you put into the account? c) How much total interest will you earn?

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