Assume you just deposited $1,000 into a bank account. The interest rate on your deposit is...
Assume you just deposited $1,000 into a bank account. The interest rate on your deposit is 6% and inflation is expected to be 2% over the next year.
What is the real interest rate you expect to earn on your deposit over the next year?
How much money will you have on deposit at the end of one year?
If you are saving to buy a new smartphone that currently sells for $1,050, will you have enough money to buy it next year?
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Assume you just deposited $1,000 into a bank account. The interest rate on your deposit is...
4. You just deposited $3,500 into a bank account and the current real interest rate is...
4. You just deposited $3,500 into a bank account and the current real interest rate is at r = 2% and inflation is expected to be te = 3% over the next year. (a) What nominal interest rate, i, from the bank would you require? (b) How much money will you have at the end of one year? (c) How much money will you have at the end of two years? (d) If you are saving up to buy a...
Chapter Four: Q4: Assume you just deposited $1,250 into a bank account. The current real interest...
Chapter Four: Q4: Assume you just deposited $1,250 into a bank account. The current real interest rate is 1% and the inflation is expected to be 5% over the next year. What nominal rate would you require from the bank over the next year? How Much money will you have at the end of one year? If you are saving to buy a fancy bicycle that currently sells for $1,300, will you have enough money to buy it? Chapter Five:...
14. Suppose you deposit $200 into a bank for 1 year. At the time of your...
14. Suppose you deposit $200 into a bank for 1 year. At the time of your deposit, goods cost $2.50 apiece. A year later, you withdraw your deposit with interest, which totals $215. At that time, the price of goods has fallen to $2.40 apiece.a.What was the “real” value of your $200 at the time of your deposit?b.What nominal interest rate did your bank pay you for your deposit?c.What was the rate of inflation over the year that your money...
you have just deposited $8,000 into an account that promises to pay you an annual interest...
you have just deposited $8,000 into an account that promises to pay you an annual interest rate of 5.9% each year for the next 5 years. you will leave the money invested in the account and 15 years from today you jeex to have 19,400 in the account. what annual interest rate must you earn over the last 10 years to accomplish this goal?
You have just deposited $12,000 into an account that promises to pay you an annual interest...
You have just deposited $12,000 into an account that promises to pay you an annual interest rate of 6.7 percent each year for the next 8 years. You will leave the money invested in the account and 20 years from today, you need to have $44,950 in the account. What annual interest rate must you earn over the last 12 years to accomplish this goal?
Suppose you found $1,000 hidden in your mattress and deposited it in a demand deposit account at your bank
Suppose you found $1,000 hidden in your mattress and deposited it in a demand deposit account at your bank. If the reserve requirement was 20 percent, the deposit would directly create in excess reserves and ultimately lead to a total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves.A. $800 ; $4,000B. $800 ; $5,000C. $1,000 ; $4,000D. $1,000 ; $5,000
You have just deposited $8,000 into an account that promises to pay you an annual interest...
You have just deposited $8,000 into an account that promises to pay you an annual interest rate of 5.9 percent each year for the next 5 years. You will leave the money invested in the account and 15 years from today, you need to have $19,400 in the account What annual Interest rate must you earn over the last 10 years to accomplish this goal? 50:50 Multiple Choice O O O C < Prev 17 of 20 Next >
You have just deposited $6,000 into an account that promises to pay you an annual interest...
You have just deposited $6,000 into an account that promises to pay you an annual interest rate of 5.5 percent each year for the next 6 years. You will leave the money invested in the account and 10 years from today, you need to have $12,800 in the account. What annual interest rate must you earn over the last 4 years to accomplish this goal? Multiple Choice 10.64% 10.48% 9.22% 12.97% 11.53%
Future 0.23 Suppose that you deposit $1,000 into a savings account that pays 8 percent. a If the bank compounds int...
Future 0.23 Suppose that you deposit $1,000 into a savings account that pays 8 percent. a If the bank compounds interest annually, how much will you have in your account in four years? b. What would your balance be in four years if the bank used quarterly com- pounding rather than annual compounding? C. Suppose you deposited the $1,000 in four payments of $250 each year beginning one year from now. How much would you have in your account after...
You plan to make two deposits to your bank account - one deposit today for $X...
You plan to make two deposits to your bank account - one deposit today for $X and one deposit in four years for $3X. You would like to withdraw $20,000 from this bank account in 6 years, and another $10,000 in 12 years. You can earn an effective rate of 5% per year. What is $X? (8 points) You want to have enough money in the bank to pay for your daughter’s education when the time comes. You expect to...
4. You just deposited $3,500 into a bank account and the current real interest rate is at r = 2% and inflation is expected to be te = 3% over the next year. (a) What nominal interest rate, i, from the bank would you require? (b) How much money will you have at the end of one year? (c) How much money will you have at the end of two years? (d) If you are saving up to buy a...
Chapter Four: Q4: Assume you just deposited $1,250 into a bank account. The current real interest rate is 1% and the inflation is expected to be 5% over the next year. What nominal rate would you require from the bank over the next year? How Much money will you have at the end of one year? If you are saving to buy a fancy bicycle that currently sells for $1,300, will you have enough money to buy it? Chapter Five:...
You have just deposited $8,000 into an account that promises to pay you an annual interest rate of 5.9 percent each year for the next 5 years. You will leave the money invested in the account and 15 years from today, you need to have $19,400 in the account What annual Interest rate must you earn over the last 10 years to accomplish this goal? 50:50 Multiple Choice O O O C < Prev 17 of 20 Next >
Future 0.23 Suppose that you deposit $1,000 into a savings account that pays 8 percent. a If the bank compounds interest annually, how much will you have in your account in four years? b. What would your balance be in four years if the bank used quarterly com- pounding rather than annual compounding? C. Suppose you deposited the $1,000 in four payments of $250 each year beginning one year from now. How much would you have in your account after...
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