Suppose that you can invest funds into a savings account that earns 1.75% per quarter, for five years and thereafter into a fund that earns 12% per annum, compounded monthly, for a further 5 years. If you require 300 000 at the end of the 10 year period, how much money must you invest tomorrow?
Suppose that you can invest funds into a savings account that earns 1.75% per quarter, for...
Suppose you invest $2500 each year in a savings account that earns 12.5% per year. How much will be in the account in 7 years?
Question 1 Suppose you make a monthly contribution of $6,000 to your savings account at the end of each month for five years. How much can be withdrawn at the end of five years, a) If your savings account earns 10% interest compounded monthly? b) If your savings account earns 10% interest compounded daily?
1. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want to withdraw $4,000 at the beginning of each month, how long before the savings plan is exhausted? 2. Suppose you accumulated $500,000, perhaps from many years of saving. You put the money in a savings plan earning 6% compounded monthly. If you want the plan to last 40 years, how much can you withdraw...
$2,000 is deposited today into a bank account. The account earns 4.3% per annum compounded quarterly for the first 4 years, then 6.3% per annum compounded monthly thereafter. Assuming no further deposits or withdrawals are made, (a) Calculate the account balance six months from today. (b) Calculate the account balance 4 years from today. (c) Calculate the account balance 4.25 years from today. (d) Calculate the account balance 13 years from today.
$5,000 is deposited today into a bank account. The account earns 2.8% per annum compounded half yearly for the first 6 years, then 7.2% per annum compounded quarterly thereafter. Assuming no further deposits or withdrawals are made, Calculate the account balance 10 years from today.
If you open a savings account that earns 6.5% simple interest per year, what is the minimum number of years you must wait to double your balance? Suppose you open another account that earns 5% interest compounded yearly. How many years will it take now to double your balance? The minimum number of years you must wait to double your balance is__________for the simple interest of 6.5%. (Round up to the nearest whole number.) The minimum number of years you...
You have $1,500 to invest. You have 2 choices: savings account A, which earns 8.75 percent compounded annually or savings account B, which earns 8.50 percent compounded monthly. Which account should you choose and why? B; because the quoted rate is higher A; because it has a higher effective annual rate B; because it has a higher effective annual rate A; because it has the higher stated rate A; because it has the higher quoted rate
Practice Problems 1. You invest $8,000 in a savings account, the interest rate is 12% per year and the length of time is 15 years. Compounding is monthly. What is the value of the savings account at the end of ten years? 2. What would be the answer if compounding is every six months? 3. How many periods does it take for money to double if the interest rate is 12% per period? 4. If the interest rate is 12%...
$5,000 is deposited today into a bank account. The account earns 4.5% per annum compounded half yearly for the first 6 years, then 4.8% per annum compounded quarterly thereafter. Assuming no further deposits or withdrawals are made, (a) Calculate the account balance six months from today. (b) Calculate the account balance 6 years from today. (c) Calculate the account balance 6.5 years from today. (d) Calculate the account balance 10 years from today.
(1 point) Suppose you invest $18,495.00 into an account earning an interest rate of 2.715% compounded continuously for 3 year(s) and thereafter earning an interest rate of 4.051% compounded monthly. How much money is in the account after 10 years? The amount in the account is (Note: Your answer should have a dollar sign and be accurate to two decimal places)