Explain why would you prefer receiving a compound interest on your savings account but pay simple...
Explain why would you prefer receiving a compound interest on your savings account but pay simple interest on your loan.
Homework Answers
You would prefer receiving a compound interest on your savings because the interest keeps compounding which means that the future value of the savings would be greater whereas you would prefer to pay loan on simple interest because a simple interest is fixed and does not compound.making you pay a fixed interest amount throughout the time period whereas it was a compounding loan then the amount you pay as interest would keep increasing over the time period.
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Explain why would you prefer receiving a compound interest on
your savings account but pay simple...
Prompt: Simple and compounding interest – Given a 2-year simple interest account or 2-year compound interest...
Prompt: Simple and compounding interest – Given a 2-year simple interest account or 2-year compound interest account both paying 5% interest which would you rather receive? Discuss your preference and provide an example. Include in the discussion the difference between simple and compound interest. Requirements: 250 words
You will be asked to find the simple interest for an account. You have $10,000 in...
You will be asked to find the simple interest for an account. You have $10,000 in a savings account that pays 2% simple interest per year. Find the interest earned for the first year. Find the balance on an account that accrues compound interest . Given an investment, APR, compounding rate and length of investment find the balance after maturity. You have $10,000 in a savings account that pays 2% APR compounded monthly. Find the balance on the account after...
If you invest $7,000 into a savings account that yields quarterly compound interest with an annual...
If you invest $7,000 into a savings account that yields quarterly compound interest with an annual interest rate of 7%, how much will you have in the savings account after 19 years?
You can invest in an account that pays simple interest or an account that pays compound...
You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3,800 today and both accounts have an annual interest rate of 6 percent. How much more interest will you receive in the 10th year in the account that pays compound interest?
You can invest in an account that pays simple interest or an account that pays compound...
You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $1,500 today and both accounts have an annual interest rate of 8 percent. How much more interest will you receive in the 8th year in the account that pays compound interest?
Problem 5-1 Simple Interest versus Compound Interest (LO1)
Problem 5-1 Simple Interest versus Compound Interest (LO1) First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually. If you made a $56,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 9 years? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts = $ _______
If you open a savings account that earns 6.5% simple interest per year, what is the...
If you open a savings account that earns 6.5% simple interest per year, what is the minimum number of years you must wait to double your balance? Suppose you open another account that earns 5% interest compounded yearly. How many years will it take now to double your balance? The minimum number of years you must wait to double your balance is__________for the simple interest of 6.5%. (Round up to the nearest whole number.) The minimum number of years you...
You can invest in an account that pays simple interest or an account that pays compound...
You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3.100 today and both accounts have an annual interest rate of 5 percent. How much more interest will you receive in the 10th year in the account that pays compound interest? Multiple Choice O 59913 O $10262
The present value of the money in your savings account is $420, and you're receiving 3% annual interest compounded monthly
The present value of the money in your savings account is $420, and you're receiving 3% annual interest compounded monthly. What is the future value in two months?
Problem 5-1 Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest...
Problem 5-1 Simple Interest versus Compound Interest [LO1] First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $68,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts
You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to invest $3.100 today and both accounts have an annual interest rate of 5 percent. How much more interest will you receive in the 10th year in the account that pays compound interest? Multiple Choice O 59913 O $10262
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