a) Calculation of amount after 3 years:
Future value= amount*(1+rate)^no. Of years
Future value= 5000*(1+0.06)^3= 5955.08
Amount after three years is $5955.08
b) calculation of amount after five years:
Future value= 5000*(1+0.06)^5= 6691.13
Amount after 5 years is $6691.13
c) calculation of amount after 10 years:
Future value= 5000*(1+0.06)^10= 8954.24
Amount after 10 years is $8954.24
d) Calculation of amount after 20 years:
Amount= 5000*(1+0.06)^20= 16035.68
Amount after 20 years is $16035.68
Round to the nearest cent Future value (with changing years). Dixie Bank offers a certificate of...
Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $7,500 for his CD investment. If the bank is offering a 4.5% interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a a. two-year investment period? b. six-year investment period? c. ten-year investment period? d. fifteen-year investment period? a. How much will the $7,500 CD investment at 4.5% interest rate...
Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $7,000 for his CD investment. If the bank is offering a 6% interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a two year investment period? a five-year investment period? a eight-year investment period? a fifteen year year investment period? a. How much will the $7,000 CD investment at 6% interest rate be worth at...
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