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%. 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 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.)
4) Nandana invests $500 at the start of each year for 20 years in a bank account paying interest at the effective annual rate i. She takes the interest paid at the end of each year and invests it in a different account paying an effective annual rate i/2. The effective annual rate she earns on her combined investments is 6% a) How much money does she have at the end of 20 years? (Total of both accounts.) b) What...
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.
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Consider an investment where $49,000 is invested for 15 years at 8% compounded continuously. How much will this investment be worth after 15 years? (Round your answer to the nearest cent.) What is the total amount earned in compound interest? (Round your answer to the nearest cent.)
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...
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