(5) You have $130,000 today and want to deposit it into a saving account at Houston...
Problem 1- Saving Money You want to deposit money into a bank account that pays 1.5% compounded monthly. Answer the following questions: f depositing $4000, how much is avaiable in the account at the end of S years? .How much do you have to deposit now in order to have $5000 available at the end of 5 years? Instead of depositing one sum of money at the beginning of the 5-year period, suppose you wish to make monthly payments. How...
Suppose you have $100 that you want to deposit in the bank (today), and you can earn a 5% annual interest rate (compounded annually) - after one yr. you will have?
21. You are about to deposit $139 into one of the following saving accounts to be left on deposit for 25 years, each bank offers an account with a different interest rate and compounding period. Assuming you want to maximize your wealth, how much money would be in the bank account that offers the best effective rate of return after 25 years? Bank A. 9.5 percent rate compounded semi annually Bank B. 9.4 percent rate compounded monthly Bank C. 9.3...
You deposit $1000 in an account today You will deposit $600 at the end of each month for the next twelve months and $800 per month for the following twelve months. How much interest will you have earned in two years in the account pays 5.5% compounded monthly?
8. You deposit $1000 in an account today You will deposit $600 at the end of each month for the next twelve months and $800 per month for the following twelve months. How much interest will you have earned in two years in the account pays 5.5% compounded monthly?
(2) The balance in your saving account on 01/01/2013 was $12,000. On 01/01/2016 you check the balance again, and it is S12,894. The bank computes the interest rate compounded monthly What is the interest rate per month? (Hint 1: First, find how many months there are between two dates. Note the question is asking the interest rate per month, not per year. Solve for the r using the above formula. Hint 2: The formula FV C) is equivalent to 1...
Suppose you want to have $500,000 by the end of 7 years. You decide to deposit an equal amount of money each month (starting next month) into a bank account that advertises a nominal rate of 4% compounded monthly. How much should you deposit each month?
You want to retire exactly 30 years from today with $1,980,000 in your retirement account. If you think you can earn an interest rate of 10.19 percent compounded monthly, how much must you deposit each month to fund your retirement?
You want to retire exactly 35 years from today with $1,930,000 in your retirement account. If you think you can earn an interest rate of 9.99 percent compounded monthly, how much must you deposit each month to fund your retirement? A) $4,595.24 B) $505.45 C) $509.66 D) $543.64 E) $594.79
You deposit $1000 today, how much you will get in five years if Bank ABC is offering 10% monthly compounded on its saving accounts?