You have been making monthly deposits of $35 into a savings account with monthly compounding for 4 years, and you do not know what the account's APR is (so you cannot use the Monthly Deposits Balance Formula to compute the balance exactly). Eventually you remember that the APY (not the APR) is 1.5%. Use the upper bound/estimate for the balance (from the course video) to determine an upper bound for your account's balance. (If necessary, round your answer to the nearest dollar.)
You have been making monthly deposits of $35 into a savings account with monthly compounding for 4 years, and you do not know what the account's APR is (so you cannot use the Monthly Deposits Balance Formula to compute the balance exactly). Eventually you remember that the APY (not the APR) is 1.5%. Use the upper bound/estimate for the balance (from the course video) to determine an upper bound for your account's balance. (If necessary, round your answer to the nearest dollar.)
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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Transcribed Image Text:You have been making monthly deposits of $35 into a savings account with monthly compounding for 4 years, and you do not know what the account's APR is (so you cannot use the
Monthly Deposits Balance Formula to compute the balance exactly). Eventually you remember that the APY (not the APR) is 1.5%. Use the upper bound/estimate for the balance (from the
course video) to determine an upper bound for your account's balance. (If necessary, round your answer to the nearest dollar.)
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