ZuoTi.Pro
Question

Fifth Fourth National Bank has a savings program which will guarantee you $10,000 in 10 years if you deposit $75 per mon...

Fifth Fourth National Bank has a savings program which will guarantee you $10,000 in 10 years if you deposit $75 per month. What APR is the bank offering you on this savings plan?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Number or periods = 10 * 12 = 120

APR = 2.09%

Keys to use in a financial calculator:

2nd I/Y 12

FV 10000

N 120

PMT 75

CPT I/Y

0 0
Add a comment
Know the answer?
Add Answer to:
Fifth Fourth National Bank has a savings program which will guarantee you $10,000 in 10 years if you deposit $75 per mon...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The general management of Electric Motors has considered having $ 75,000 available within 10 years, to...

    The general management of Electric Motors has considered having $ 75,000 available within 10 years, to complete the expansion of its current administrative office. For such purpose have designed a savings plan with the intention of reaching the established goal, taking advantage of the promotion of the Bank "El Buen Amigo" that offers them a fixed rate of 6% annual capitalized semi-annually, for the entire time that deposits are being made savings. The plan is to start depositing a certain...

  • The general management of Electric Motors has considered having $ 75,000 available within 10 years, to...

    The general management of Electric Motors has considered having $ 75,000 available within 10 years, to complete the expansion of its current administrative office. For such purpose have designed a savings plan with the intention of reaching the established goal, taking advantage of the promotion of the Bank "El Buen Amigo" that offers them a fixed rate of 6% annual capitalized semi-annually, for the entire time that deposits are being made savings. The plan is to start depositing a certain...

  • Three years ago, you made a deposit in a savings account with a 4% APR. The...

    Three years ago, you made a deposit in a savings account with a 4% APR. The bank pays interest monthly with no compounding. Today you have $1680 in the bank. What was your original deposit?

  • Derek can deposit $260.00 per month for the next 10 years into an account at Bank...

    Derek can deposit $260.00 per month for the next 10 years into an account at Bank A. The first deposit will be made next month. Bank A pays 15.00% and compounds interest monthly. Derek can deposit $2,534.00 per year for the next 10 years into an account at Bank B. The first deposit will be made next year. Bank B compounds interest annually. What rate must Bank B pay for Derek to have the same amount in both accounts after...

  • 1. Allen Paige is planning to invest $10,000 in a bank certificate of deposit (CD) for...

    1. Allen Paige is planning to invest $10,000 in a bank certificate of deposit (CD) for five years. The CD will pay interest of 9 percent compounded annually. What is the future value of Allen’s investment? How much would that investment be if Allen received simple interest only instead of compounded interest? 2. Mary Grace expects to need $50,000 for a down payment on a house in six years. How much would she have to invest today in an account...

  • Suppose you want to deposit a certain amount of money into a savings account and then...

    Suppose you want to deposit a certain amount of money into a savings account and then leave it alone to draw interest for the next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you need to deposit today make that happen? You can use the following formula, which is known as the present value formula, to find out:                                    P = F / (1+ r)^n The terms in...

  • Third National Bank has reserves of $10,000 and checkable deposits of $100,000. The reserve ratio is 10 percent. Househo...

    Third National Bank has reserves of $10,000 and checkable deposits of $100,000. The reserve ratio is 10 percent. Households deposit $15,000 in currency into the bank and that currency is added to reserves. What level of excess reserves does the bank now have?

  • Consider the two savings plans below. Compare the balances in each plan after 6 years Which...

    Consider the two savings plans below. Compare the balances in each plan after 6 years Which person deposited more money in the plan? Which of the two investment strategies is better? Yolanda deposits $550 per month in an account with an APR of 3%, while Zach deposits $7000 at the end of each year in an account with an APR of 3.5% The balance in Yolanda's saving plan after 6 years was $ (Round the final answer to the nearest...

  • (a) David Broke has $10,000 to deposit in his bank, Bancordia; if the bank is willing...

    (a) David Broke has $10,000 to deposit in his bank, Bancordia; if the bank is willing to pay annual interest of 2%, how much money will David Broke have in 5 years? (b) Suppose the bank is willing to pay 1.5 % twice a year, how much money will David Broke have in 5 years? (c) Imagine that after 5 years David Broke wants to buy a house; the bank is willing to loan him $120,000, which is unrelated to...

  • P5.3      Present Value. Suppose you want to deposit a certain amount of money into a savings...

    P5.3      Present Value. Suppose you want to deposit a certain amount of money into a savings account and then leave it alone to draw interest for the next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you need to deposit today tomake that happen? You can use the following formula, which is known as the present value formula, to find out: P = F/(1+r)^n The terms in the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT