The good news - saving $10 per month We continue with the same example: you deposit $10 per month into a savings account with an annual interest rate of 30%, compounded monthly. Use your formula f(r)...
The good news is that SAVING uses the same geometric series formula as BORROWING money! Assume you deposit $10 per month into a savings account with an annual interest rate of 30%, compounded monthly (a) Sketch the graph representing the amount that you've DEPOSITED into the account after r years. Hint: you can determine this formula and graph the function easily.) (b) In another color, copy your graph of f (r) from the previous slide. This is the total amount...
If you deposit $1,067 per month into a savings account that pays an annual rate of 4.7 percent, compounded monthly, how much will you have in the account after 31 years? Show using Excel Functions. Nper Rate PV FV PMT
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...
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%...
Question 3 Kim deposits her annual bonus into a savings account that pays 10% interest compounded monthly. The size of the bonus increases annually. The size of the bonus increases by $1,000 each year, and the initial bonus amount is $3,000. Determine how much will be in the account immediately after the fifth deposit.
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...
4) Townville Bank offers a savings account that pays 3.25% annual interest compounded monthly. a) What is the yield (APY) on this account? Round to the nearest hundredth of a percent. [5 pt] b) If Amy makes a deposit of $15,000 into this account, how much will be in her account after 8 years? [8 pt]
1. What is the formula to calculate how much a savings account would be worth if the initial balance is $1000 with monthly deposits of $75 for 10 years at 4.3 percent annual interest compounded monthly? What is the formula result? 2. You want a savings account to grow from $1,000 to $5,000 within two years. Assume the bank provides a 3.2 percent annual interest rate compounded monthly. What is the formula to calculate how much you must deposit each month...
Question 7 If A, dollars are invested at annual interest rate r, compounded monthly, then after years the account will have grown to 12: A) = A 1 + 12 If $3000 is placed into an account eaming 10% annual interest, compounded monthly, how much will it grow to after 10 years? (1-2) $6607.30 $8121.12 $8230.43 $6944.62
You deposit $175 semi-monthly (that's twice per month) into an account earning 5% interest. You play to continue the same deposit until your retirement, in 30 years. a) How much will you have in the account after 30 years? b) How much total money will you put in the account? Answer: 126000 c) How much total interest will you earn?