Assume that on 1 January 2015 you deposited $1,000 into a savings account that pays 8% p.a. If the bank compounds interest quarterly, how much will you have in your account on 1 January 2018?
a.
$1,301.15
b.
$1,349.13
c.
$1,372.79
d.
$1,483.09
e.
$1,268.24
FV = Amount Deposited * (1 + r)n
= $1,000 * [1 + (0.08/4)](3*4)
= $1,000 * 1.2682 = $1,268.24
So, Option "e" is correct.
Assume that on 1 January 2015 you deposited $1,000 into a savings account that pays 8%...
Assume you opened and deposited $1000.00 into a savings account that pays 4% per annum. If the bank compounds interest annually, how much will you have in your account at the end of 3 years (assuming no deposits or withdrawals are made for 3 years)? Find the balance if the bank compounds interest quarterly under the same conditions. Find the balance if the bank compounds interest continuously under the same conditions.
Future 0.23 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 com- pounding 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...
1. If $5,000 is deposited into a savings account that pays 8% interest, compounded quarterly Ya) What will the balance be after 6 years? (5 points)
You deposited $20,000 in a savings account that pays 12 percent interest, compounded quarterly, planning to use it to finish your last year in college. Eighteen months later, you decide to go to the Rocky Mountains to become a ski instructor rather than continue in school, so you close out your account. How much money will you receive?
On January 1, 2018, you deposited $5,700 in a savings account. The account will earn 10 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 5 years? 2. What is the total interest for the 5 years? 3. How much interest revenue did the fund earn in 2018 and in 2019? Complete this question by entering...
You just deposited $8,000 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now? a. $20,232.41 b. $23,789.75 c. $19,565.40 d. $26,457.76 e. $22,233.41
3 pts $12,000 is deposited in a bank account that pays 8% nominal interest per year. (a) How long does it take for the account to reach $42,500, if interest compounds quarterly? O 14 years O 16 yeans D Question 2 3 pts (b) What nominal annual interest would be required for the account to reach $30,000 in 10 years, if interest compounds monthly? 8.5%/year 92%/year
A) How much money will be in your savings account on January 1, 2023 if you deposit $5,000 on January 1, 2020 and you earn 3.1% per year in interest? Interest is compounded annually on December 31 B) How much money would you have to deposit on January 1, 2020 to have $5,000 in your bank account on January 1, 2027 if the savings account paid 1.25% interest, compounded annually on December 31 of each year? C) Suppose your discount...
iz Instructions Question1 3 pts $12,000 is deposited in a bank account that pays 8% nominal interest per year. (a) How long does it take for the account to reach $42,500, if interest compounds quarterly? 13 years 14 years D 15 years O 16 years Question 2 3 pts (b) What nominal annual interest would be required for the account to reach $30,000 in 10 years, if interest compounds monthly? 8.5%/year 8.8%/year O 92%1year 98%/year ouiz saved at 9.58am Submit...
On January 1, 2016, you deposited $7,000 in a savings account. The account will earn 9 percent annual compound interest, which will be added to the fund balance at the end of each year. 1. What will be the balance in the savings account at the end of 9 years? (Use appropriate factor(s) from the tables provided. Round your final answers to 2 decimal places.) Balance in the savings account> 2. What is the total interest for the 9 years? (Use...