On August 8, 1981, American Savings offered an insured tax-free account paying 23.24% compounded monthly. If...
On August 8, 1981, American Savings offered an insured tax-free account paying 23.24% compounded monthly. If you had invested $80,000 at that time, how much would you have on August 8, 2014, assuming that you could have locked the interest rate at the time of deposit? Use the formula A = P(1+5)* nt for n = 12. (Round your answer to the nearest cent.)
Jacob Lee invested $600 in a savings account paying 8% interest compounded twice a year. What will be his interest at the end of the year? Round to the nearest dollar. $48 $24 $49- Not the answer $25
Interest rates were at historical highs in the early 1980s. In August of 1981, you could earn 17.5% compounded annually on a five-year term deposit with a Canadian bank. Since then, the interest rate offered on five-year term deposits dropped to a low of 2.0% compounded annually in February of 2019. On a $14,500 deposit for a term of five years, how much more would you have earned at the historical high interest rate than at the more recent low...
Suppose that $17,000 is invested in a savings account paying 6.2% interest per year. (a) Write the formula for the amount A in the account after years of interest is compounded monthly Att) - (b) Find the amount in the account after 5 years ir interest is compounded daily (Round your answer to two decimal places) (c) How long will it take for the amount in the account to grow to $20,000 ir interest is compounded continuously? (Round your answer...
Name 5. A savings account that offers 2.18% compounded monthly: you can remove the money any time you like, but plan to keep it in the investment for 5 years. 6. A rival bank to the one in Question 5 offers the same interest rate, but they compound hourly. The plan is also to keep the money invested for 5 years. So how would you invest the money? Obviously, you have to discuss you reasoning. Think about the fact that...
You have a savings account that earns 5% Interest, compounded annually. A friend has offered you an investment opportunity, he says that if you invest In his new business, he will pay you $34,000 a year for the next five years. What is the maximum amount you would be willing to invest in your friend's business? (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV...
9. Anthony invested a sum of money 4 yr ago in a savings account that has since paid interest at the rate of 7%/year compounded quarterly. His investment is now worth $22,438.81. How much did he originally invest? Please round the answer to the nearest cent. 10. Joe plans to deposit $300 at the end of each month into a bank account for a period of 2 yr, after which he plans to deposit S500 at the end of each month into the same...
The good news is that SAVING uses the same geometric series formula as BORROWING money! Assume you deposit $10 per month into a savings account with an annual interest rate of 30%, compounded monthly (a) Sketch the graph representing the amount that you've DEPOSITED into the account after r years. Hint: you can determine this formula and graph the function easily.) (b) In another color, copy your graph of f (r) from the previous slide. This is the total amount...
Please solve these i. You deposit $6000 in an account earning 2% interest compounded monthly. How much will you have in the account in 10 years? ii. Find the time required for an investment of 5000 dollars to grow to 7900 dollars at an interest rate of 7.5 percent per year, compounded quarterly. Round your answer to two decimal places Your answer is t= iii. You currently have $2,800 (Present Value) in an account that has an interest rate of...
1. You deposit $400 each month into an account earning 7% interest compounded monthly. a) How much will you have in the account in 35 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $ 2. Suppose you want to have $300,000 for retirement in 35 years. Your account earns 8% interest. a) How much would you need to deposit in the account each month? $ b)...