Given that,
Interest earned on $1000 for 8 months is $45
Let EAR be r
So, interest = A*(1+r)^t - A
=> 45 = 1000*(1+r)^(8/12) - 1000
=> 1.045^(12/8) = (1+r)
=> r = 6.83%
So, effective annual rate = 6.83%
a). For 5 month, interest earned = 1000*1.0683^(5/12) - 1000 = $27.89
b). for 1 year, interest earned = 1000*1.0683 - 1000 = $68.25
c). For 1.2 years, interest earned = 1000*1.0683^1.2 - 1000 = $82.45
You can earn $45 in interest on a $1,000 deposit for eight months. If the EAR...
You can earn $58 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless of the length of the investment, how much interest will you earn on a $1,000 deposit for:a. 9 months.b. 1 year.c. 1.5 years.
Appendix A You invest $3,000 in a certificate of deposit that matures after eight years and pays 5 percent interest, which is compounded annually until the certificate matures. Use Appendix A to answer the questions. Round your answers to the nearest dollar. How much interest will you earn if the interest is left to accumulate? $ How much interest will you earn if the interest is withdrawn each year? $
Assume that you deposit $1,000 at a compound interest rate of 8% for 2 years. How much additional interest will you earn as compared to receiving simple interest for the same time period? O $6.40 $16.64 $86.40 O Cannot determine from the information given.
1) You plan to deposit $200 each month into an IRA earning 0.25% interest monthly. How much will you have in your account in 10 years? 2) You just graduated from college and landed your first "real" job, which pays $68,000 a year. In 9 years how much will you need to earn to maintain the same purchasing power if inflation is 0.75% per year? 3) Calculate the future value of $13,000 earning 9% for 35 years. 4) You have...
How much interest is earned in the third year on a $1,000 deposit that earns 10% interest compounded annually? (2 points) I. 2. If you seek to be a millionaire (savings- $1,000,000) when you retire in 45 years, how much must you deposit at the end of each year if you earn 6% compounded annually? (2 points) rate of interest. The loan will have annual ment will be $10,000. The other three 3. You would like to loan me $100,000...
Old Time Savings Bank pays 4% interest on its savings accounts. If you deposit $1,000 in the bank and leave it there: (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. How much interest will you earn in the second year? b. How much interest will you earn in the 10th year?
1. Assume that it takes 11.5 years for $1,000 to accumulate to $3,000 if you earn 10% per year. What will happen to the length of time needed for $1,000 to accumulate to $3,000 if the interest rate increases? A. Stay the same? B. Impossible to determine C. Increase D. Decrease 2. Assume that it takes an investment of $3,507 today to accumulate to $5,000 in 3 years when the interest rate is 12% per year compounded quarterly. How much...
UHULJIC PICCI Value ullus perpetuity? 2) Smith Bank pays 8% interest, compounded quarterly. If you deposit $1,000 into the account today, how much interest will you earn in one year? What is the EAR?
How much must you deposit today if you can earn 2.40% annual rate of interest (with monthly compounding) in order to have $42,000 seven years from now? Please show ALL work with finance formulas.
Interest and You Today you deposit $1,000 in an account earning 5%. Every year for the next 30 years, you deposit $1,000. At the end of the 30 years, you will have: A. B. $30,000 $31,500 $51,253 $66,438 This answer is based on compound interest. Copyright 2018 McGrow Hill Education. All rights reserved. No reproduction or distribution without prior written consent of McGraw-Hill Education Interest and You To continue the previous example, what if, instead of 30 years, you put...