RichBank and SwissBank make two different offers on their saving account options when a deposit of...
RichBank and SwissBank make two different offers on their saving account options when a deposit of $10,000 is made. RichBank offers a 6% annual interest rate, compounded monthly. SwissBank, on the other hand, offers 10% annual interest rate for the first 6 months and an annual x% for the following 6 months. What does the rate x need to be when the gain with SwissBank is $100 higher than with RichBank? Assume the accounts are kept untouched throughout.
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RichBank and SwissBank make two different offers on their saving
account options when a deposit of...
21. You are about to deposit $139 into one of the following saving accounts to be left on deposit for 25 years, each ban...
21. You are about to deposit $139 into one of the following saving accounts to be left on deposit for 25 years, each bank offers an account with a different interest rate and compounding period. Assuming you want to maximize your wealth, how much money would be in the bank account that offers the best effective rate of return after 25 years? Bank A. 9.5 percent rate compounded semi annually Bank B. 9.4 percent rate compounded monthly Bank C. 9.3...
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next...
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...
(5) You have $130,000 today and want to deposit it into a saving account at Houston...
(5) You have $130,000 today and want to deposit it into a saving account at Houston Cougar Bank. The clerk at the bank says if you make a deposit today, then your balance in 6 years will be $190,000. Assume the bank computes the interest rate compounded monthly. What is the interest rate per month offered by the bank? (Hint : This is similar to, fundamentally the same as, the question (2).) 1.0.4090 2. 0.43% 3. 0.47% 4. 0.50% 5.0.53%
2. A local bank has two saving options. One offers 6% interest compound on a daily...
2. A local bank has two saving options. One offers 6% interest compound on a daily bases while the other offers 6.5% compounded quarterly. Which saving option would you choose? a. 6% compound daily b. 6.5% compound quarterly c. They are the same.
You deposit $1,000 at the end of the year (k = 0) into an account that...
You deposit $1,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate, this time the interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate once more to...
You plan to deposit money in a saving account earning 10% p.a. You will make 4...
You plan to deposit money in a saving account earning 10% p.a. You will make 4 annual deposits of $7,000 each. The first deposit will be made today, and the second deposit will be made one year from today and so on. No deposits will be made after the fourth deposit. What will be the accumulated sum available at the end of 20 years with annual compounding?
1. Calculate the compound amount when S1500 is deposited in an account earning an annual interest...
1. Calculate the compound amount when S1500 is deposited in an account earning an annual interest rate of 5%, compounded monthly, for 18 months. 2, How much money should be invested in an account that earns 6% annual interest, com- pounded monthly, in order to have $15, 000 in 5 years? 3. How much interest is earned on a $2000 deposit for 2 years at a 0.12% monthly interest rate. compounded daily?
You deposit $2,500 at the end of the year ( 0) into an account that pays interest at a rate of 7% compounded a...
You deposit $2,500 at the end of the year ( 0) into an account that pays interest at a rate of 7% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate this time the interest rate becomes 8% nominal interest compounded quarterly Nine years after your deposit, the saving account changes its rate once more to 6%...
Daniel plans to deposit $450 into a savings account at regular intervals of 3 months. He continues this for 5 years and...
Daniel plans to deposit $450 into a savings account at regular intervals of 3 months. He continues this for 5 years and then stops with the deposits. What is the value of the account after 10 years if the savings account earns interest at an annual interest rate of 5.5% compounded monthly
Daniel plans to deposit $450 into a savings account at regular intervals of 3 months. He continues this for 5 years and then stops with the deposits. What...
(1 point) If you make a deposit into a bank account, at what interest rate (compounded...
(1 point) If you make a deposit into a bank account, at what interest rate (compounded monthly) should you invest if you would like to double your investment in 64 months? % (Note: Your answer should be accurate to two decimal places)
8-One year from now, you deposit $300 in a savings account. You deposit $1,800 the next year. Then you wait two more years (until 4 years from now) and deposit $1,000. If your account always earns 6% annual interest and you make no withdrawals, how much will be in the account 11 years from now? 9-You deposit $5000 for 5 years at 4% annual interest. In 5 years, you add $15,000 to your account, but the rate on your account...
(5) You have $130,000 today and want to deposit it into a saving account at Houston Cougar Bank. The clerk at the bank says if you make a deposit today, then your balance in 6 years will be $190,000. Assume the bank computes the interest rate compounded monthly. What is the interest rate per month offered by the bank? (Hint : This is similar to, fundamentally the same as, the question (2).) 1.0.4090 2. 0.43% 3. 0.47% 4. 0.50% 5.0.53%
You deposit $1,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate, this time the interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate once more to...
1. Calculate the compound amount when S1500 is deposited in an account earning an annual interest rate of 5%, compounded monthly, for 18 months. 2, How much money should be invested in an account that earns 6% annual interest, com- pounded monthly, in order to have $15, 000 in 5 years? 3. How much interest is earned on a $2000 deposit for 2 years at a 0.12% monthly interest rate. compounded daily?
You deposit $2,500 at the end of the year ( 0) into an account that pays interest at a rate of 7% compounded annually. Two years after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate this time the interest rate becomes 8% nominal interest compounded quarterly Nine years after your deposit, the saving account changes its rate once more to 6%...
Daniel plans to deposit $450 into a savings account at regular intervals of 3 months. He continues this for 5 years and then stops with the deposits. What is the value of the account after 10 years if the savings account earns interest at an annual interest rate of 5.5% compounded monthly
Daniel plans to deposit $450 into a savings account at regular intervals of 3 months. He continues this for 5 years and then stops with the deposits. What...
(1 point) If you make a deposit into a bank account, at what interest rate (compounded monthly) should you invest if you would like to double your investment in 64 months? % (Note: Your answer should be accurate to two decimal places)
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