George Green wishes to invest $8000.00 that he saved from his summer job. His bank offers...
George Green wishes to invest $8000.00 that he saved from his summer job. His bank offers 3.75% for a one-year term or 3.5% for a six month term.
a) How much will George receive (capital plus interest) after one year if he invests at the one-year rate? Round to nearest one.
b) How much will he receive (capital plus interest) after one-year if he invests for six months at a time at 3.5% each time? Round to nearest 100th.
c) What would the one-year rate have to be to yield the same amount of interest when investing for six months at a time at 3.5% each time? Give your answer as a percentage round to nearest 100th.
Homework Answers
Add Answer to:
George Green wishes to invest $8000.00 that he saved from his
summer job. His bank offers...
Darwin has a capital of $7100.00 which he invests for 3 years are 7.6% p. a....
Darwin has a capital of $7100.00 which he invests for 3 years are 7.6% p. a. a) How much will he receive come maturity time if the interest is compounded annually? Round to nearest 100th. b) How much will he received come maturity time if the interest is compounded semi-annually? Round to nearest 100th. c) How much will he receive come maturity time if the interest is compounded quarterly? Round the nearest 100th.
15. Darwin has a capital of $ 7100.00 which he invests for 3 years at 7.6...
15. Darwin has a capital of $ 7100.00 which he invests for 3 years at 7.6 % p. a. a)How much will he receive come maturity time if the interest is compounded annually? Round to nearest 100th. b)How much will he received come maturity time if the interest is compounded semi-annually? Round to nearest 100th . c)How much will he receive come maturity time if the interest is compounded quarterly? Round to nearest 100th . *** no financial inputting in...
Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to...
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...
George Costanza has just taken out an $18,718.00, 60-month car loan from his local bank with...
George Costanza has just taken out an $18,718.00, 60-month car loan from his local bank with a 7.20% interest rate compounded monthly. At the end of the second year, George plans on making a $3,167.00 payment directly to the loan’s principal and then to keep on making his regular monthly payments. How many months remain on the loan after the extra payment is made? (Do not round)
6. bu A man is planning to retire in 20 years. He wishes to deposit a...
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
6. A man is planning to retire in 20 years. He wishes to deposit a regular...
6. A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the end...
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he r...
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
Required information The following information applies to the questions displayed below.] At the beginning of his...
Required information The following information applies to the questions displayed below.] At the beginning of his current tax year, David invests $13.160 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 25 years. David receives $620 in interest ($310 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 4.2 percent. (Round your intermediate calculations to the nearest whole dollar amount.) a. How much...
Suzanne had a summer job working in the business office of Blast-It TV and Stereo, a...
Suzanne had a summer job working in the business office of Blast-It TV and Stereo, a local chain of home electronics stores. When Michael Jacobssen, the owner of the chain, heard she had completed one year of business courses, he asked Suzanne to calculate the profitability of two new large-screen televisions. He plans to offer a special payment plan for the two new models to attract customers to his stores. He wants to heavily promote the more profitable TV. When...
NAME: Today, Mr. Smith wishes to purchase a house which costs $400,000.00. His bank requires a...
NAME: Today, Mr. Smith wishes to purchase a house which costs $400,000.00. His bank requires a 25% down payment and will lend him the remainder to be paid back over a 30 year period in monthly installments at an annual rate of 6%. His first payment is due one month from today. [Total points (perfect = 45) will be divided by 1.5 Maximum Score of 305 points extra credit.] A.) Calculate the amount of Mr. Smith's monthly payment. (10 points)...
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...
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
6. A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the end...
6. bu A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of $60,000 for the next 15 years. How much must he deposit if the annual interest rate is 6% compounded quarterly? (Note that the last deposit is made on the date of the end of 20th year, and first withdrawal is at the...
Required information The following information applies to the questions displayed below.] At the beginning of his current tax year, David invests $13.160 in original issue U.S. Treasury bonds with a $10,000 face value that mature in exactly 25 years. David receives $620 in interest ($310 every six months) from the Treasury bonds during the current year, and the yield to maturity on the bonds is 4.2 percent. (Round your intermediate calculations to the nearest whole dollar amount.) a. How much...
NAME: Today, Mr. Smith wishes to purchase a house which costs $400,000.00. His bank requires a 25% down payment and will lend him the remainder to be paid back over a 30 year period in monthly installments at an annual rate of 6%. His first payment is due one month from today. [Total points (perfect = 45) will be divided by 1.5 Maximum Score of 305 points extra credit.] A.) Calculate the amount of Mr. Smith's monthly payment. (10 points)...
Most questions answered within 3 hours.
-
please don't use the p value method instead use the "5 steps of
hypothesis testing." Or...
asked 1 minute ago -
It is said that Galileo discovered a basic principle of the
pendulum—that the period is independent...
asked 6 minutes ago -
The Cost of Equity and
Flotation Costs
Messman Manufacturing
will issue common stock to the public...
asked 13 minutes ago -
a) summarize the challenges facing New Britain today
b) identify some of its strengths
c) suggest...
asked 15 minutes ago -
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 16 minutes ago -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 29 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 34 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 37 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 45 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 46 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 59 minutes ago