A. Yvonne invests K6000 at Barclays bank and K9000 at Standbic bank. Barclays compounds interest continuously at a nominal rate of 10%.
A. Yvonne invests K6000 at Barclays bank and K9000 at Standbic bank. Barclays compounds interest continuously at a nominal rate of 10%. Standbic compounds interest continuously at a nominal rate of 4%.
I. In how many years will the two investments be worth the same amount? Your answer must be exact. [8 Marks]
II. When both investments are worth the same amount, how much will each be worth? Round your answer to the nearest ngwee
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A. Yvonne invests K6000 at Barclays bank and K9000 at Standbic bank. Barclays compounds interest continuously at a nominal rate of 10%.
A. Yvonne invests K6000 at Barclays bank and K9000 at Standbic bank. Barclays compounds interest continuously at a nominal rate of 10%. Standbic compounds interest continuously at a nominal rate of 4%. I. In how many years will the two investments be wort
A. Yvonne invests K6000 at Barclays bank and K9000 at Standbic bank. Barclays compounds interest continuously at a nominal rate of 10%. Standbic compounds interest continuously at a nominal rate of 4%.I. In how many years will the two investments be worth the same amount? Your answer must be exact. [8 Marks]II. When both investments are worth the same amount, how much will each be worth? Round your answer to the nearest ngwee
Mwape has $10, 000 that she wants period Indo Bank compounds interest on annual basis, STANBIC compounds interest twice each year and STANCHART compounds interest each quarter. All three banks hav...
Mwape has $10, 000 that she wants period Indo Bank compounds interest on annual basis, STANBIC compounds interest twice each year and STANCHART compounds interest each quarter. All three banks have a stated annual interest rate of 4%. to deposit in any of the three savings accounts for a 3-year a. What amount would Mwape have at the end of the third year, leaving all interest paid on deposit, 3 marks]) b. What effective annual rate (EAR) would she earn...
8. A bank advertises that it compounds interest continuously and that it will double your money...
8. A bank advertises that it compounds interest continuously and that it will double your money in 12 years. What is the annual interest rate? (You may leave your answer exact or round to the nearest hundredth percent.)
A woman invests $6200 in an account that pays 6% interest per year, compounded continuously. (a)...
A woman invests $6200 in an account that pays 6% interest per year, compounded continuously. (a) What is the amount after 3 years? (Round your answer to the nearest cent.) Enter a number. (b) How long will it take for the amount to be $8000? (Round your answer to two decimal pla yr
What effective interest rate per year, compounded continuously, is equivalent to a nominal rate of 15%...
What effective interest rate per year, compounded continuously, is equivalent to a nominal rate of 15% per year? Express your answer as a %.
Assume you opened and deposited $1000.00 into a savings account that pays 4% per annum. If the bank compounds interest...
Assume you opened and deposited $1000.00 into a savings account that pays 4% per annum. If the bank compounds interest annually, how much will you have in your account at the end of 3 years (assuming no deposits or withdrawals are made for 3 years)? Find the balance if the bank compounds interest quarterly under the same conditions. Find the balance if the bank compounds interest continuously under the same conditions.
(1 point) A bank account earns 11 percent interest compounded continuously. At what (constant, continuous) rate...
(1 point) A bank account earns 11 percent interest compounded continuously. At what (constant, continuous) rate must a parent deposit money into such an account in order to save 100000 dollars in 13 years for a child's college expenses? rate = (dollars/year) If the parent decides instead to deposit a lump sum now in order to attain the goal of 100000 dollars in 13 years, how much must be deposited now? amount = (dollars)
3) Effective versus nominal interest rates. Bank A pays 4% interest compounded annually on deposits, Bank...
3) Effective versus nominal interest rates. Bank A pays 4% interest compounded annually on deposits, Bank B pays 3.75% compounded semiannually, and Bank C pays 3.5% compounded daily. a) Which bank would you use? Why? b) If you deposited $5,000 in each bank today, how much would you have at the end of 2 years? c) What nominal rate would cause Banks B and C to provide the same effective annual rate as Bank A? d) Suppose you do not...
Your bank pays a quoted annual (nominal) rate of 12%. However, it compounds interest every week...
Your bank pays a quoted annual (nominal) rate of 12%. However, it compounds interest every week (52 times a year). What is the effective annual rate (EAR)? Select one: a. Less than 12% b. Exactly 12% c. 12.01% - 12.35% d. 12.36% - 12.70% e. More than 12.70%
please show evry step for the soulution clearly QUESTION 11: A bank pays a nominal interest...
please show evry step for the soulution clearly
QUESTION 11: A bank pays a nominal interest rate of 6%, continuously compounded. If 100 is ini- tially deposited, how much interest will be earned after (a) 30 days; (b) 60 days; (c) 120 days?
Mwape has $10, 000 that she wants period Indo Bank compounds interest on annual basis, STANBIC compounds interest twice each year and STANCHART compounds interest each quarter. All three banks have a stated annual interest rate of 4%. to deposit in any of the three savings accounts for a 3-year a. What amount would Mwape have at the end of the third year, leaving all interest paid on deposit, 3 marks]) b. What effective annual rate (EAR) would she earn...
8. A bank advertises that it compounds interest continuously and that it will double your money in 12 years. What is the annual interest rate? (You may leave your answer exact or round to the nearest hundredth percent.)
A woman invests $6200 in an account that pays 6% interest per year, compounded continuously. (a) What is the amount after 3 years? (Round your answer to the nearest cent.) Enter a number. (b) How long will it take for the amount to be $8000? (Round your answer to two decimal pla yr
(1 point) A bank account earns 11 percent interest compounded continuously. At what (constant, continuous) rate must a parent deposit money into such an account in order to save 100000 dollars in 13 years for a child's college expenses? rate = (dollars/year) If the parent decides instead to deposit a lump sum now in order to attain the goal of 100000 dollars in 13 years, how much must be deposited now? amount = (dollars)
3) Effective versus nominal interest rates. Bank A pays 4% interest compounded annually on deposits, Bank B pays 3.75% compounded semiannually, and Bank C pays 3.5% compounded daily. a) Which bank would you use? Why? b) If you deposited $5,000 in each bank today, how much would you have at the end of 2 years? c) What nominal rate would cause Banks B and C to provide the same effective annual rate as Bank A? d) Suppose you do not...
please show evry step for the soulution clearly
QUESTION 11: A bank pays a nominal interest rate of 6%, continuously compounded. If 100 is ini- tially deposited, how much interest will be earned after (a) 30 days; (b) 60 days; (c) 120 days?
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