The principal represents an amount of money deposited in a savings account subject tocompound interest at the given rate.A. Find how much money there will be in the account after the given number of years.B. Find the interest earned.Click the icon to view some finance formulas.A. The amount of money in the account after 3 years is $.(Round to the nearest hundredth as needed.)B. The amount of interest earned is $(Round to the nearest hundredth as needed.)Principal$6000Rate5%CompoundedannuallyTime3 years

Compound = Annually = 1 Principal Amount = p = $6000 Interest rate = r = 5% Time = t = 3 years

Answered: The principal represents an amount of…

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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A depositor opens in your savings account with $5000 at 5% compounded semiannually at the beginning of 5 years an additional $5000 is deposit at the end of 6 years. What is the balance in the account?
= A bank features a savings account that has an annual percentage rate of r interest compounded quarterly. Tatiana deposits $9,000 into the account. The account balance can be modeled by the exponential formula A(t) = a (1 + 7-)kt, where A is account value after t years, a is the principal (starting amount), r is the annual percentage rate, k is the number of times each year that the interest is compounded. (A) What values should be used for a, r, and k? a = r = 5.6% with k = (B) How much money will Tatiana have in the account in 7 years? Answer = $ 7. Round answer to the nearest penny. APY = = %. Round answer to 3 decimal places. (C) What is the annual percentage yield (APY) for the savings account? (The APY is the actual or effective annual percentage rate which includes all compounding in the year).
You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Year Year Beginning Balance Interest Year End Balance 1 $250.00 2 3 4 5 PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Present Value (PV) PV FV Factor Future Value (FV) PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).
a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic Deposit Rate $2000 at the end of every three months 6.25% compounded quarterly Click the icon to view home finance formulas. Time 6 years
The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is: O $106.29 $63.69 $96.00 O $96.36
Solve all parts
a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit $? at the end of each year iClick the icon to view some finance formulas. Rate 3% compounded annually Time 16 years Financial Goal $120,000
The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. A. Find how much money there will be in the account after the given amount of years. B. Find the interest earned. Principal $7000Rate 4% Compounded Semi-annually Time 3 years
Use the formula for computing future value using compound interest to determine the value of an account at the end of 6 years if a principal amount of $5,000 is deposited in an account at an annual interest rate of 4% and the interest is compounded quarterly
3. You deposited $250 in the bank for 5 years at 12%. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the compounded amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. Year Year Beginning Balance Interest Year End Balance 1 $250.00 ? ? 2 ? ? ? 3 ? ? ? 4 ? ? ? 5 ? ? ? PLEASE NOTE #1: All dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Use the future value of $1 table in the Appendix B PV FV Tables Appendix B PV FV Tablesand verify that your answer above is correct. Present Value (PV) PV FV Factor Future Value (FV) ? ? ? PLEASE NOTE #2: All factors from the PV FV Tables are rounded to three decimal places (i.e. 1.234).

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The principal represents an amount of money deposited in a savings account subject to compound interest at the given rate. A. Find how much money there will be in the account after the given number of years. B. Find the interest earned. Principal $6000 Rate 5% Compounded annually Time 3 years