$20,000 is put into an empty savings account with a nominal interest rate of .01%. No...
5) $8000 is put into an empty savings account with a nominal interest rate (APR) of 1.5%. No other contributions are made to the account. With monthly compounding, how much interest will have been earned after five years? a) $625 b) $635 c) $645 d) $655
Suppose you decide to deposit $20,000 in a savings account that pays a nominal rate of 6%, but interest is compounded daily. Based on a 365-day year, how much would you have in the account after 6 months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) A) $20,196.86 B) $21,639.49 C) $20,609.04 D) $19,990.77
You are making $500 monthly deposits into a savings account that pays interest at a nominal rate of 6% per year, compounded monthly. What is the future equivalent value of this account after six years? The future equivalent value of this account after six years is $0 (Round to the nearest dollar.)
If you put $1,000 in a savings account at an interest rate of 10%, how much money will you have in one year? Select one: a. $909. b. $1,200. c. $1150 d. $1,100 e. $950.
You deposit $3,000 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 1 2% nominal interest compounded month y Five years after ur de o the savings account aga changes it interest rate this time e interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate...
Question 11 of 11 An investment of $5,000 in a TFSA (Tax Free Savings Account) accumulated to $5,285 at the end of one year at a monthly compounding interest rate. However, the interest rate after year one changed and the balance in the account at the end of year two was $5,765. a. Calculate the nominal interest rate for the first one year. 0.00 % Round to two decimal places b. Calculate the effective interest rate earned by this investment...
Practice Problems 1. You invest $8,000 in a savings account, the interest rates a savings account, the interest rate is 12% per year and the length of time is 15 years. Compounding is monthly. What is savings account at the end of ten years? 2. What would be the answer if compounding is every six months
A bank offers a nominal annual interest rate of 8% for a new savings account. (i) What is the effective rate when compounded quarterly? Draw the cash flow diagram. (ii) If you want to build $500,000 in savings in 2 years, what quarterly annuity must be made? Draw the cash flow diagram.
A loan of $20,000 to purchase a car at annual nominal rate of interest of 6% compounded monthly will be paid back through monthly installments over 5 years, (a) with the 1st installment to be made 1 month after the release of the loan. What is the monthly installment? (b) with the 1st installment to be made Right after the release of the loan. What is the monthly installment? (DO NOT USE EXCEL) (answer for A is $386.66 and answer...
Suppose, instead, Justin deposits 100 into a savings account, paying nominal interest rate i (2) = 2%, at the beginning of each half year for 10 years. The interest earned from this account can be withdrawn at the end of each year and reinvested into another account earning AEIR 4%. Find the accumulated value of his holdings (in both accounts) at the end of 10 years.