The bank is offering to the public their savings account scheme that pays 9.84% compounded annually. How much is it if it is compounded quarterly?
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A: Formulas:
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A:
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A: We require to compute the Effective annual rate in this question using monthly compounding.
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Q: San Juan Rural Bank is offering to the public their savings account scheme that pays 9.84%…
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Q: It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%. a.…
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The bank is offering to the
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?It is now January 1, 20x8. Today you will deposit P100,000 into a savings account that pays 8%. a. If the bank compounds interest annually, how much will you have in your account on January 1, 20x9? b. What will your January 1, 20x9 balance be if the bank uses quarterly compounding$600 is deposited in a savings bank that pays 5±70 compounded quarterly. How much will the account contain after 9 years and 3 months? How much interest will be earned?
- Your bank account pays a nominal interest rate of 8%, compounded quarterly. You deposit $500 in the account today, and deposit $1,000 in the account at the end of the first year. How much will you have in the account at the end of the first year?It is now January 1, 2018. You will deposit $1,000 today into a savings account that pays 8 percent.a. If the bank compounds interest annually, how much will you have in your account on January 1, 2021?b. What would your January 1, 2021, balance be if the bank used quarterly compounding? c. Suppose you deposit $1,000 in 3 payments of $333.333 each on January 1 of 2019, 2020, and 2021.How much would you have in your account on January 1, 2021, based on 8 percent annual compounding?d. How much would be in your account if the 3 payments began on January 1, 2018? e. Suppose you deposit 3 equal payments in your account on January 1 of 2019, 2020, and 2021.Assuming an 8 percent interest rate, how large must your payments be to have the same ending balance asin part a?if you deposit $17,000 in the bank today, you will be able to withdraw $24,000 from the account in six years. what is the implied rate that the back is paying?
- 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?If you deposit OMR 12500 in your account in a bank. Suppose the bank pays 8.25% compound interest monthly. Calculate future value of your money in 17 years.A bank features a savings account that has an annual percentage rate of R=5.8% with interest compounded quarterly. Holly deposits $6,500 into the account.(A) What value should be used for n if time = 1010 years? (B) How much money will Holly have in the account in 1010 years? C) What is the effective rate for the savings account?
- Old Time Savings Bank pays 8.25% 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?If the bank is paying 12% interest compounded semiannually, how much must you deposit today in your account if you wish to have $18,000 at the end of two years?You owe the bank $1,245 in 9 months. How much do you need to deposit in an account today, earning 3.25% APR compounded monthly, to fully fund this obligation?