Deposit = 3000
Effective rate for 1st yr = 7%
Effective rate for next 4 years = (1+0.12/12)^12 - 1 = 0.126828 = 12.68%
Effective rate for next 3 yrs = (1+0.08/4)^4 - 1 = 0.082432 = 8.24%
Effective rate for next 7 yrs = 6%
FW of deposit = 3000 * (1+0.07) * (1+0.1268)^4 * (1+0.0824)^3 * (1+0.06)^7
= 3000 * (1.07) * (1.1268)^4 * (1.0824)^3 * (1.06)^7
= 9867.26
b.
F = 9867.26
P = 3000
t = 15 yrs
F = P *(1+i)^t
9867.26 = 3000 * (1+i)^15
(1+i)^15 = 9867.26 / 3000 = 3.289088
i = 3.289088 ^ (1/15) -1
i = 1.082609 - 1 = 0.082609
i = 8.26%
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%...
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%...
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...
QUESTION 48 You deposit $100 in a savings account that pays 10% interest compounded annually. How much would you have in your account at the end of 7 years? O $180.12 O $182.12 O $194.87 O$198.695 o $201.32
you deposit 4000 in an account that pays 8% interest compounded semiannually. After two years the interest rate is increased to 8.44% compounded quarterly. What will the value of the account after a total of four years
Just 57 QUESTION 56 You deposit$ 100 in a savings account that pays 12%interest compounded annually. How much would you have in your account at the end of 5 years? O$160 $166.16 O $168.41 $172.35 O $176.23 QUESTION 57 In the above question, if the bank pays 12% interest compounded qua erly. How much would you have in your account at the end of 5 years? $165.12 $173.16 $180.61 $181.35 $182.45
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...
You plan to deposit $29535 into a savings account that pays 4% compounded annually for 22 years. In year 10 you had to withdraw $1678 for an emergency. How much will you have in your account at the end of 22 years? Enter your answer as follows: 12345 Round your answer. Do not use a dollar sign ("$"), any commas("), or a decimal point(""
An individual deposits an annual bonus into a savings account that pays 5% interest compounded annually. The size of the bonus increases by $4.600 each year, and the initial bonus amount was $20,000. Determine how much will be in the account immediately after the sixth deposit. A. $197,000 OB. $209.808 C. $300,523 D. $296,087
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...