Question

1. Derek can deposit $272.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 14.00% and compounds interest monthly. Derek can deposit $2,542.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after 10 years?

2.Derek currently has $11,509.00 in an account that pays 5.00%. He will withdraw $5,918.00 every other year beginning next year until he has taken 7.00 withdrawals. He will deposit $11509.0 every other year beginning two years from today until he has made 7.0 deposits. How much will be in the account 30.00 years from today?

Answer 1

Lock S D F Shift G N х с у Fo Ctrl 100 for Bank A Annual deposit amount 3272X 12 2 $3264 calculation of compound Interest AZP(ltijo_p A Amount = ng P2 Principal Tee lexico T= Rate of interest - 3264 (1:14)03264 n = time in year 8836 .. Total amountz 8836 + 326402 236 + 32640=41476 calculation of rate of Interest for Banks 41476 2 2542 (146) A- Plien) (16.31643)= 1001 - 32.21% Vio 16.31643)= 100+ Too