Suppose you invest $2,500 in a fund earning 15% simple interest. Further suppose that you have the option at any time of closing this account and opening an account earning compound interest at an annual effective interest rate of 9%. At what instant should you do so in order to maximize your accumulation at the end of five years? (Round your answer to two decimal places.) 4.53 years How about if you wish to maximize the accumulation at the end of ten years? (Round your answer to two decimal places.) 4.53 years

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A: Future Value Annuity = PMT×Where:FV - future value of the annuity.PMT - annual payment r - annual…

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A: Annuity means no. of payments which are equal in size and made at equal length of intervals. Person…

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A: Future Value is the value of current investments at a certain future date at the assumed…

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A: The concept of money's time value reveals that any sum of money is worth more currently, than what…

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A: In this we have to calculate future value FACTOR and than we have to calculate future value.

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A: Quarterly receipts = $13,000Period = 10 yearsInterest rate = 6%

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A: Future value = PV * (1+I)N -1 / I.PV= Present value.I= Interest rate N= Number of periods.Cal

Q: if you place $1100 today into an account that pays simple interest and you have $6100 dollars in the…

A: Present value is the estimation of the current value of future cash value which is likely to be…

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A: Compound = Quarterly = 4Number of Payment = n = 3 * 4 = 12Interest rate = i = 14 / 4 = 3.5%Payment =…

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A: Net present value refers to the method of capital budgeting used for estimating the viability of the…

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A: The amount after 5 years can be computed using the future value formula.

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A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

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A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth…

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A: Given information: Annual deposits : $4000 Interest rate : 5% Time period : 5 years

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Q: If you put $200,000 into your investment account now for 10 year at 5% annual interest, what is the…

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.