Sunshine Bank & Trust is offering a CD that pays 7.5% compounded continuously. How much interest...
Sunshine Bank & Trust is offering a CD that pays 7.5% compounded continuously. How much interest would a $3,000 deposit earn over 5 years? (Round your answer to the nearest dollar.)
Selct one:
a. $4,365
b. $1,365
c. $4,125
d. $1,125
Homework Answers
Given,
Deposit = $3000
Interest rate (r) = 7.5% or 0.075
Number of years (n) = 5
Solution :-
Future value = deposit x e(r)(n)
= $3000 x e(0.075)(5)
= $3000 x e(0.375)
= $3000 x 1.4549914146 = $4365
Now,
Interest = Future value - deposit
= $4365 - $3000 = $1365
Option 'b' is correct.
Add Answer to:
Sunshine Bank & Trust is offering a CD that pays 7.5%
compounded continuously. How much interest...
A particular savings bank pays 6% annual interest compounded continuously. How much will a deposit of...
A particular savings bank pays 6% annual interest compounded continuously. How much will a deposit of $4000 amount to for each time period? Hint: Convert months to days. When needed, use 365 days per year and 30 days per month a. 6 years b. 9 years 9 months c. 4 years 11 months 24 days d. 20 years 213 days a. The amount accumulated after 6 years is $ (Round to the nearest cent as needed.) 1 b. The amount...
A particular savings bank pays 2% annual interest compounded continuously. How much will a deposit of $3000 amount...
A particular savings bank pays 2% annual interest compounded continuously. How much will a deposit of $3000 amount to for each time period? Hint: Convert months to days. When needed, use 365 days per year and 30 days per month a. 9 years b. 9 years 9 months c. 9 years 1 month 15 days d. 27 years 98 days a. The amount accumulated after 9 years is (Round to the nearest cent as needed.) b. The amount accumulated after...
a. You deposit $4000 in an account which pays 4% compounded continuously. How much...
a. You deposit $4000 in an account which pays 4% compounded continuously. How much will you have at the end of 20 years? Round to the nearest penny. b. Find the doubling time for 3% compounded continuously. Do not use the Rule of 72.
A philanthropist deposits $125,000 into a trust fund that pays 4% interest, compounded continuously. The balance...
A philanthropist deposits $125,000 into a trust fund that pays 4% interest, compounded continuously. The balance will be given to the college from which the philanthropist graduated after the money has earned interest for 25 years. How much will the college receive? OA) $336,448.50 B) $339,220.64 OC) $338,101.73 D) $339,766.61 E) $333,229.54 OF) $339,785.23 G) $250,000.00
Bank ABC offers a 10-year CD that pays a 5% interest compounded annually. Bank XYZ also...
Bank ABC offers a 10-year CD that pays a 5% interest compounded annually. Bank XYZ also offers a 10-year CD that pays 4.879% interest compounded daily. How much would a $1,000 initial investment in each bank's CD be worth at maturity?
Recently, a certain bank offered a 10-year CD that earns 13.4% compounded continuously. Use the given...
Recently, a certain bank offered a 10-year CD that earns 13.4% compounded continuously. Use the given information to answer the questions. (a) If $40,000 is invested in this CD, how much will it be worth in 10 years? approximately $ (Round to the nearest cent.) (b) How long will it take for the account to be worth $60,000? approximately years (Round to two decimal places as needed.)
3. Linda invests $3000 in a bond trust that pays 8% interest compounded monthly. Her friend...
3. Linda invests $3000 in a bond trust that pays 8% interest compounded monthly. Her friend Lyla invests $3000 in a certificate of deposit that pays 7.75% compounded continuously. For Linda: a. State which formula should be used to solve this problem. b. Write the resulting function for Linda. c. Determine how much Linda would have in her account after 20 years. For Lyla: a. State which formula should be used to solve this problem. b. Write the resulting function...
1a.Suppose the bank changed the interest policy to 7% interest, compounded quarterly, how much money would...
1a.Suppose the bank changed the interest policy to 7% interest, compounded quarterly, how much money would be in the account at the end of 2 years, assuming a $400 deposit now? b.How long will it take for your money to double at 13% nominal interest, compounded continuously?
please provide work Recently, a certain bank offered a 10-year CD that earns 5.66% compounded continuously....
please provide work
Recently, a certain bank offered a 10-year CD that earns 5.66% compounded continuously. Use the given information to answer the questions. (a) If $10,000 is invested in this CD, how much will it be worth in 10 years? approximately $ (Round to the nearest cent.) (b) How long will it take for the account to be worth $35,000? approximately years (Round to two decimal places as needed.)
Jim places $10,000 in a bank account that pays 11.6% compounded continuously. After 2 years, will...
Jim places $10,000 in a bank account that pays 11.6% compounded continuously. After 2 years, will he have enough money to buy a car that costs $12,618? If another bank will pay Jim 12% compounded semiannually, is this a better deal? After 2 years, Jim will have $ (Round to the nearest cent as needed.) Jim will have enough money to buy the $12,618 car after 2 years. After 2 years, the other bank will yield $ (Round to the...
A particular savings bank pays 6% annual interest compounded continuously. How much will a deposit of $4000 amount to for each time period? Hint: Convert months to days. When needed, use 365 days per year and 30 days per month a. 6 years b. 9 years 9 months c. 4 years 11 months 24 days d. 20 years 213 days a. The amount accumulated after 6 years is $ (Round to the nearest cent as needed.) 1 b. The amount...
A particular savings bank pays 2% annual interest compounded continuously. How much will a deposit of $3000 amount to for each time period? Hint: Convert months to days. When needed, use 365 days per year and 30 days per month a. 9 years b. 9 years 9 months c. 9 years 1 month 15 days d. 27 years 98 days a. The amount accumulated after 9 years is (Round to the nearest cent as needed.) b. The amount accumulated after...
A philanthropist deposits $125,000 into a trust fund that pays 4% interest, compounded continuously. The balance will be given to the college from which the philanthropist graduated after the money has earned interest for 25 years. How much will the college receive? OA) $336,448.50 B) $339,220.64 OC) $338,101.73 D) $339,766.61 E) $333,229.54 OF) $339,785.23 G) $250,000.00
Recently, a certain bank offered a 10-year CD that earns 13.4% compounded continuously. Use the given information to answer the questions. (a) If $40,000 is invested in this CD, how much will it be worth in 10 years? approximately $ (Round to the nearest cent.) (b) How long will it take for the account to be worth $60,000? approximately years (Round to two decimal places as needed.)
3. Linda invests $3000 in a bond trust that pays 8% interest compounded monthly. Her friend Lyla invests $3000 in a certificate of deposit that pays 7.75% compounded continuously. For Linda: a. State which formula should be used to solve this problem. b. Write the resulting function for Linda. c. Determine how much Linda would have in her account after 20 years. For Lyla: a. State which formula should be used to solve this problem. b. Write the resulting function...
please provide work
Recently, a certain bank offered a 10-year CD that earns 5.66% compounded continuously. Use the given information to answer the questions. (a) If $10,000 is invested in this CD, how much will it be worth in 10 years? approximately $ (Round to the nearest cent.) (b) How long will it take for the account to be worth $35,000? approximately years (Round to two decimal places as needed.)
Jim places $10,000 in a bank account that pays 11.6% compounded continuously. After 2 years, will he have enough money to buy a car that costs $12,618? If another bank will pay Jim 12% compounded semiannually, is this a better deal? After 2 years, Jim will have $ (Round to the nearest cent as needed.) Jim will have enough money to buy the $12,618 car after 2 years. After 2 years, the other bank will yield $ (Round to the...
Most questions answered within 3 hours.
-
1.) Major league baseball salaries averaged $1.5 million with a
standard deviation of $1 million in...
asked 1 minute ago -
A hedge fund is holding a three-year,
$10 million face value 6 percent annual coupon bond...
asked 13 minutes ago -
The focal length of a makeup (concave) mirror is 0.48 m. What
magnification does this mirror...
asked 17 minutes ago -
TRUE/FALSE
Long-lived assets that are tangible in nature, used in the
operations of the business, and...
asked 17 minutes ago -
A dragon biologist is setting up an experimental population of
1000 individuals. In dragons, pointy crests...
asked 28 minutes ago -
A uniform thin rod of length 0.851 m is hung from a horizontal
nail passing through...
asked 38 minutes ago -
A 747 has a cruising speed of 235 m/s at a height of 10,700
meters. The...
asked 47 minutes ago -
Part 3: Arrows
Write a python program that prompts the user for a number of
columns,...
asked 54 minutes ago -
Need help answering these questions!!
1. What economic concept do you find most interesting in
Macroeconomics?...
asked 58 minutes ago -
1. Nimbus, Inc. produces and sells brooms. This table shows the
relationship between the number of...
asked 1 hour ago -
A gas occupies 200. mL in a piston. If the pressure of the
piston were decreased...
asked 1 hour ago -
A fossil is found to have a 14C level of 71.0% compared to
living organisms. How...
asked 1 hour ago