You are considering a generous offer from two banks for your savings account. Bank A is offering an interest rate of 6% p.a. Bank B’s rate is 6% p.a. compounded semiannually. For a deposit amount of $1,000 today, determine: 1.Bank B’s effective semiannual and yearly rates. 2.Your account balance at the end of 5 years for both banks. 3.Which bank you would choose to do business with and why.draw cash flow diagram.

Q: 2. A savings bank offered you 6% nominal interest compounded every 2 months You deposited $4,000. a)…

A: here we calculate the future value and the effective interest rate of the following , so by using…

Q: 1 You deposit $17,000 in a retirement account on your 25th birthday, and you plan to retire on your…

A: Here we calculate the following by using the given information , and conclude the answer so the…

Q: 1a. Suppose $100 is withdrawn at the end of 2022, emptying an account that earns 5% interest,…

A:

Q: not use ai please

A: To determine how much of payment 90 will go towards paying interest for a loan of $73 ,000 at 10 .5%…

Q: A bank sales a pledge of savings certificate of 500,000$ to pay 10 years later. to a 4% continuous…

A: The information which has been given to us is as follows:-   Future value is $500,000 n is given to…

Q: How much will a bank deposit of $2,000 that pays 10% compound interest be worth at the end of 3…

A: Compounding interest is a type of interest calculation where the interest earned on a principal…

Q: You can afford a $1500 per month mortgage payment. You've found a 30 year loan at 7% interest…

A: Given:- Mortgage payment amount=$1500 Time frame=30 Years Interest rate=7% Please find detailed…

Q: A company purchased a machine for $30,000. It paid 30% as a down payment and obtained a loan for the…

A: nominal interest rate refers the percentage increase in money you pay the lender for the use of the…

Q: Here are two ways of investing ​$50,000 for 20 years.       ​ Lump-Sum Deposit      Rate      Time…

A: Amount to invest  $50,000 Time period = 20 years Lump-Sum Deposit Rate Time ​$50,000 5​%…

Q: 1) You have a goal of saving $1500 over 6 years. Assuming bank interest rates are 5%, What annual…

A: Here we calculate the annual deposit amount by the following method as follow;

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: In economics, interest rate refers to the price paid by borrowers for the use of the money they…

Q: account today that earns 5.5% interest compounded monthly if you want to have $1500 saved in 2 years

A:

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given,  Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: You bought an antique car three years ago for $500 000. Today it is worth $650 000.(a) What annual…

A: Time (t =) 3 years;    Principle (P) = $500,000   Worth after 3 youlf x= $ 150,000

Q: Showing your working out, compute the price of all four bonds:     Face Value Maturity (years)…

A: The bond price is the present value of the future cash flow of the bond.  Bond price = present value…

Q: You are borrowing $500,000 to buy a house. The interest rate is 4% compounded monthly.  What is…

A: The per month payment is calculated by the following formula: PV=PMTi1-11+in where, PV= Amount of…

Q: You have $25,000 in an account that pays 6% interest compounded annually. You want to make equal…

A: Deposit in Year 1 = $25000Annually compounded interest rate = 6%Duration = 8 years

Q: Find the interest rates in the following situations. a. APR = 7%, compounded monthly. Find the…

A: Here we calculate the Following interest rate by using the given information so the calculation of…