an investor deposits $5250 in a certificate of deposit which pays 7.35% and compounds weekly. What...
an investor deposits $5250 in a certificate of deposit which pays 7.35% and compounds weekly. What will be the balance in seven (7) years.
Please show formula! Thanks.
Homework Answers
Formula is C =P *(1+r/n)^tn
where C is the total returns, P is the initial deposit amount, r is the annual interest rate in decimal form, n is number of compounding periods per year (for example, 12 for monthly compounding) and t is the numbers of years the money is invested for.
C=5250*(1+(7.35%/52)^52*7
C=5250*(1+0.001413)^52*7
C=5250*(1.0014)^364
C=5250*1.672194
C=8779.02
Add Answer to:
an investor deposits $5250 in a certificate of deposit which
pays 7.35% and compounds weekly. What...
Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank...
Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one-year maturity and a fixed interest rate. The first certificate of deposit, CD #1, pays 5.95 percent APR compounded quarterly, while the second certificate of deposit, CD #2, pays 6.00 percent APR compounded weekly. ****What is the effective annual rate (the EAR) of each CD, If the first certificate of deposit, CD #1, pays 5.95 percent APR compounded , the EAR for...
11. A two-year certificate of deposit pays an annual effective rate of 9%. The purchaser is...
11. A two-year certificate of deposit pays an annual effective rate of 9%. The purchaser is offered two options for prepayment penalties in the event of early withdrawal: A - a reduction in the rate of interest to 7%. B loss of three months interest In order to assist the purchaser in deciding which option to select, compute the ratio of the proceeds under Option A to those under Option B if the certificate of deposit is surrendered: a. At...
1. Suppose an investor deposits $2500 in an interest-bearing account at her local bank. The account...
1. Suppose an investor deposits $2500 in an interest-bearing account at her local bank. The account pays 2.5% interest compounded annually. If the investor plans on withdrawing the original principal plus accumulated interested at the end of 7 years, what is the total amount that she should expect to receive assuming interest rates do not change? Please show steps on how to calculate answer with a financial calculator.
1. Allen Paige is planning to invest $10,000 in a bank certificate of deposit (CD) for...
1. Allen Paige is planning to invest $10,000 in a bank certificate of deposit (CD) for five years. The CD will pay interest of 9 percent compounded annually. What is the future value of Allen’s investment? How much would that investment be if Allen received simple interest only instead of compounded interest? 2. Mary Grace expects to need $50,000 for a down payment on a house in six years. How much would she have to invest today in an account...
You plan to invest an amount of money in five-year certificate of deposit (CD) at your...
You plan to invest an amount of money in five-year certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12 percent, compounded monthly. How much must you invest if you want the balance in the CD account to be $8,500 in five years? Please explain the formula.
please solve using formula, and show me the formula used for good rate, thanks An investor deposits $15,000 in a mut...
please solve using formula, and show me the formula
used for good rate, thanks
An investor deposits $15,000 in a mutual fund account starting in year 1. In year 2, the investor continues to make annual deposits, but decides to reduce the amount deposited by 10 percent each year. The ROR on the mutual fund is = 10%. How much will the investor have in the mutual fund by year 10? Your solution will be closest to? a. $120,000 c....
2. An investor makes single deposits into a mutual fund of $250 in year 2 and...
2. An investor makes single deposits into a mutual fund of $250 in year 2 and $250 year 4, respectively. In addition, the investor starts making annual deposits starting at $500 in year 6, increasing the deposit by $100 annually in year 7 through year 10 (ending annual deposit would the fore be $900). What is the equivalent uniform annual amount of deposits over 10 years assuming a mutual fund ROR of 10%? Your solution will be closest to? a....
2. An investor makes single deposits into a mutual fund of $250 in year 2 and...
2. An investor makes single deposits into a mutual fund of $250 in year 2 and $250 year 4, respectively. In addition, the investor starts making annual deposits starting at $500 in year 6, increasing the deposit by $100 annually in year 7 through year 10 (ending annual deposit would the fore be $900). What is the equivalent uniform annual amount of deposits over 10 years assuming a mutual fund ROR of 10%? Your solution will be closest to? a....
3) Determine the value at the end of 3 years o certificate of deposit (CD) that...
3) Determine the value at the end of 3 years o certificate of deposit (CD) that pays a nominal annua pays a nominal annual interest rate of 8% co a) Quarterly b) Monthly f s3,500. If he only pays the APR of 12% on credit 4 Phillip has a credit card payment balance outstanding o minimum balance of $50 each month, and the credit card charges an card balances, how long will it take for Phillip to pay off his...
Bus Econ 10.4.5 : Question Help 0 An investor deposits $6,000 into an account that pays...
Bus Econ 10.4.5 : Question Help 0 An investor deposits $6,000 into an account that pays 4% compounded continuously, and then begins to withdraw from the account continuously at a rate of $1,400 per year. a. Write a differential equation to describe the situation. b. How much will be left in the account after 2 years? c. When will the account be completely depleted? a. Find the differential equation. Let A represent the account balance in dollars, and let t...
11. A two-year certificate of deposit pays an annual effective rate of 9%. The purchaser is offered two options for prepayment penalties in the event of early withdrawal: A - a reduction in the rate of interest to 7%. B loss of three months interest In order to assist the purchaser in deciding which option to select, compute the ratio of the proceeds under Option A to those under Option B if the certificate of deposit is surrendered: a. At...
please solve using formula, and show me the formula
used for good rate, thanks
An investor deposits $15,000 in a mutual fund account starting in year 1. In year 2, the investor continues to make annual deposits, but decides to reduce the amount deposited by 10 percent each year. The ROR on the mutual fund is = 10%. How much will the investor have in the mutual fund by year 10? Your solution will be closest to? a. $120,000 c....
2. An investor makes single deposits into a mutual fund of $250 in year 2 and $250 year 4, respectively. In addition, the investor starts making annual deposits starting at $500 in year 6, increasing the deposit by $100 annually in year 7 through year 10 (ending annual deposit would the fore be $900). What is the equivalent uniform annual amount of deposits over 10 years assuming a mutual fund ROR of 10%? Your solution will be closest to? a....
3) Determine the value at the end of 3 years o certificate of deposit (CD) that pays a nominal annua pays a nominal annual interest rate of 8% co a) Quarterly b) Monthly f s3,500. If he only pays the APR of 12% on credit 4 Phillip has a credit card payment balance outstanding o minimum balance of $50 each month, and the credit card charges an card balances, how long will it take for Phillip to pay off his...
Bus Econ 10.4.5 : Question Help 0 An investor deposits $6,000 into an account that pays 4% compounded continuously, and then begins to withdraw from the account continuously at a rate of $1,400 per year. a. Write a differential equation to describe the situation. b. How much will be left in the account after 2 years? c. When will the account be completely depleted? a. Find the differential equation. Let A represent the account balance in dollars, and let t...
Most questions answered within 3 hours.
-
3. (10 pts) You grow a corn crop that yields 150 bushels ac-1,
with the following...
asked 11 minutes ago -
7. The term Six Sigma refers to:
Select one:
a. The control limits established in a...
asked 20 minutes ago -
Wildhorse Company follows the practice of pricing its inventory
at the lower-of-cost-or-market, on an individual-item
basis....
asked 22 minutes ago -
For the following reaction: A(g) + 2 B(g) ⇌ 2 C(g) Calculate the
equilibrium constant K...
asked 23 minutes ago -
Which of the following best describes tidal volume? options:
1.The amount of oxygen in the air...
asked 39 minutes ago -
1. Smaller cost distortions occur when the traditional systems'
single indirect-cost rate and the activity-cost-driver rates:...
asked 47 minutes ago -
Using either a FMECA approach or some other appropriate RCA
tool, identify five risk treatment actions...
asked 48 minutes ago -
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 1 hour ago -
Using Python. Write a function clean2(aList) that takes a list
of integers aList as argument, and...
asked 1 hour ago -
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 1 hour ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 1 hour ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 1 hour ago