(a) Consider a deposit of $1, earning a nominal interest of 12% pa, compounded monthly. Derive...
(a) Consider a deposit of $1, earning a nominal interest
of 12% pa, compounded monthly. Derive the formula for the amount,
P, of a deposit that will earn the same amount of interest (i.e.
the sum total of the entire interest earned) if P earns interest
weekly at a nominal rate of 12% pa.
(b) Are the two amounts in part (a) equivalent? Give
reason.
Homework Answers
Add Answer to:
(a) Consider a deposit of $1, earning a nominal interest
of 12% pa, compounded monthly. Derive...
You deposit $ 556 each month into an account earning 2.8 % interest compounded monthly for...
You deposit $ 556 each month into an account earning 2.8 % interest compounded monthly for 6 years. How much total interest will you earn? $_____________ (Round to the nearest DOLLAR)
1. You deposit $400 each month into an account earning 7% interest compounded monthly. a) How...
1. You deposit $400 each month into an account earning 7% interest compounded monthly. a) How much will you have in the account in 35 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $ 2. Suppose you want to have $300,000 for retirement in 35 years. Your account earns 8% interest. a) How much would you need to deposit in the account each month? $ b)...
QUESTION 2 You deposit $10,000 in an account earning 5% interest compounded weekly. How much will...
QUESTION 2 You deposit $10,000 in an account earning 5% interest compounded weekly. How much will you have in the account after 17 years? How much of the amount was interest earned?
1. Lulu started saving $200/month in a 401(k) earning 6% interest compounded monthly when she was...
1. Lulu started saving $200/month in a 401(k) earning 6% interest compounded monthly when she was 45 years old. How much will be in her account when she retires at age 65? 2. How much money did Lulu deposit into her account over the course of the 20 years? 3. What dollar amount of interest did her account earn? 4. Murphy started putting $100/month into his 401(k) earning 6% APR when he was 25 years old. How much will be...
You deposit $300 each month into an account earning 4% interest compounded monthly. a) How much...
You deposit $300 each month into an account earning 4% interest compounded monthly. a) How much will you have in the account in 30 years? $ b) How much total money will you put into the account? $ c) How much total interest will you earn? $
You deposit $350 each month into an account earning 4% interest compounded monthly. a) How much...
You deposit $350 each month into an account earning 4% interest compounded monthly. a) How much will you have in the account in 15 years? b) How much total money will you put into the account? c) How much total interest will you earn? S
i. You deposit $5000 in an account earning 5% interest compounded monthly. How much will you have in the account in 5 ye...
i. You deposit $5000 in an account earning 5% interest compounded monthly. How much will you have in the account in 5 years? ii. Suppose you want to have $400,000 for retirement in 20 years. Your account earns 8% interest. How much would you need to deposit in the account each month?
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years...
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years and 7% interest compounded quarterly thereafter. What is the account value after 7 years? Problem 1.9 What is the equivalent effective annual (compound) interest rate in Problem 1.8? Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate δ(t) = 2/(t + 1) (t > 0). What is the value...
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years...
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years and 7% interest compounded quarterly thereafter. What is the account value after 7 years? Problem 1.9 What is the equivalent effective annual (compound) interest rate in Problem 1.8? Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate δ(t) = 2/(t + 1) (t > 0). What is the value...
You deposit $2000 in an account earning 8% interest compounded monthly. How much will you have...
You deposit $2000 in an account earning 8% interest compounded monthly. How much will you have in the account in 5 years?
QUESTION 2 You deposit $10,000 in an account earning 5% interest compounded weekly. How much will you have in the account after 17 years? How much of the amount was interest earned?
1. Lulu started saving $200/month in a 401(k) earning 6% interest compounded monthly when she was 45 years old. How much will be in her account when she retires at age 65? 2. How much money did Lulu deposit into her account over the course of the 20 years? 3. What dollar amount of interest did her account earn? 4. Murphy started putting $100/month into his 401(k) earning 6% APR when he was 25 years old. How much will be...
You deposit $350 each month into an account earning 4% interest compounded monthly. a) How much will you have in the account in 15 years? b) How much total money will you put into the account? c) How much total interest will you earn? S
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years and 7% interest compounded quarterly thereafter. What is the account value after 7 years? Problem 1.9 What is the equivalent effective annual (compound) interest rate in Problem 1.8? Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate δ(t) = 2/(t + 1) (t > 0). What is the value...
Problem 1.8 You deposit $5,000 in an account earning 5% interest compounded semi-annually for 2 years and 7% interest compounded quarterly thereafter. What is the account value after 7 years? Problem 1.9 What is the equivalent effective annual (compound) interest rate in Problem 1.8? Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate δ(t) = 2/(t + 1) (t > 0). What is the value...
Most questions answered within 3 hours.
-
Which of the following describes a private network?
1. A wide area network (WAN) linking sites...
asked 7 minutes ago -
The purpose of this
lab: Wireshark Intro Lab
is to get students
familiar with the use of...
asked 16 minutes ago -
Question 3
A 50 percent deduction is allowed for amounts paid or incurred for
dues and...
asked 14 minutes ago -
Assuming that the wave speed varies little when sound waves are
traveling through a material that...
asked 29 minutes ago -
The rise of online shopping and Amazon, in particular, has
created major dilemmas for large food/CPG...
asked 28 minutes ago -
Is oxygen difluoride polar or nonpolar?
nonpolar
polar
ionic
none of the above
asked 40 minutes ago -
Starting from rest, a car accelerates at a constant rate of 2.6
m/s2 for a time...
asked 36 minutes ago -
A pharmaceutical company wants to answer the question whether
time for a drug in pill form...
asked 39 minutes ago -
) Assume that in the market for widgets, demand is highly
elastic compared to supply. If...
asked 50 minutes ago -
Why is a personal interview the most important step in the sales
selection process? What are...
asked 1 hour ago -
In Python rOverlap (x1, y1, w1, h1, x2, y2, w2, h2) A rectangle
is axis-aligned if...
asked 1 hour ago -
If we observe in a protein solution that DNA is causing a
mixture 260/280 ratio ~0.9,...
asked 1 hour ago