You currently have $5,000. First United Bank will pay you an annual interest rate of 8.1, while Second National Bank will pay you an annual interest rate of 9.2. How many fewer years must you wait for your account value to grow to $10,300 at Second National Bank?
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- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the 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. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?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?Imagine you want to earn $1000 in total after 3 years. The Bank A says that account earns 5% interest, compounded semi-annually. The Bank B says, “We offer you an interest rate 20%, but with simple interest rate”. For where do you need less money today to make a deposit? Show calculations
- Suppose your credit card has a balance of $6,200 and an annual interest rate of 15%. You decide to pay off the balance over three years. If there are no further purchases charged to the card, (a) How much must you pay each month? (b) How much total interest will you pay? Now suppose decide to pay off the balance over one year rather than three. (c) How much more must you pay each month? (d) How much less will you pay in total interest? P n Use PMT = - nt 1 - 1+ n to determine the payment amount. Round to the nearest dollar. ..... А. (а) $224 (b) $616 (c) $344 more per month; (d) $1,248 less in total interest В. (а) $224 (b) $1,864 (c) $344 more per month; (d) $1,248 less in total interest С. (а) $215 (b) $1,540 (c) $345 more per month (d) $1,020 less in total interest D. (a) $215 (b) $520 (c) $345 more per month (d) $1,020 less in total interestYou plan to deposit $700 in a bank account now and $900 at the end of one year. If the account earns 2% interest per year, what will the balance be in the account right after you make the second deposit? There will be $ in the account right after the second deposit. (Type an integer or a decimal.)If you deposit $8,000 in a bank account that pays 4% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent.
- A depositor currently has $6,000 and plans to invest it in an account that accrues interest continuously. What interest rate must the bank pay if the depositor needs to have $10,000 in four years?Suppose that you deposit $1,000 into a savings account that pays 8 percent. a. If the bank compounds interest annually, how much will you have in your account in four years? b. What would your balance be in four years if the bank used quarterly compounding rather than annual compounding? c. Suppose you deposited the $1,000 in four payments of $250 each year beginning one year from now. How much would you have in your account after you make the final deposit, based on 8 percent annual compounding? d. Suppose you deposited four equal payments in your account beginning one year from today. If you can invest your money at an 8 percent interest rate, how large would each of your payments have to be for you to obtain the same ending balance as you calculated in part (a)?You plan to deposit $1,500 per year for 4 years into a money market account with an annual return of 3%. You plan to make your first deposit one year from today. What amount will be in your account at the end of 4 years? Do not round intermediate calculations. Round your answer to the nearest cent.$ Assume that your deposits will begin today. What amount will be in your account after 4 years? Do not round intermediate calculations. Round your answer to the nearest cent.$