Question

An account paying annual compound interest was opened with $1,000 ten years ago. Today, the account balance is $1,500.

a) What annual interest rate did the account pay?

b) How many years will it take to double the money you currently have? Assume you

continue to earn the same interest rate you did over the last ten years

Answer #1

an account paying annual interest was ooened with OMR2000 10
years ago. today, the account balance is OMR 3500. if the same
interest rate is offered on an account paying simple interest, how
much income would be earned each year over the same time period? a.
92.6 b.150 c.56.90 d. 80.40 e.115.20

an account paying annual interest was ooened with OMR2000 10
years ago. today, the account balance is OMR 3500. if the same
interest rate is offered on an account paying simple interest, how
much income would be earned each year over the same time period? a.
92.6 b.150 c.56.90 d. 80.40 e.115.20

Consider the following scenarios:
i - an investor deposited $1,000 ten years ago in an investment
account and earned a compound annual interest of 5% yielding a
balance of $1,628.89 today.
ii - an investor will deposit $1,000 five years from now in an
investment account which is expected to earn a compound interest of
5% and yield a balance of $1,628.89 over a ten year period. The
money will be used for a gift to the investor's child that...

Assume that ten years ago, you deposited $2,600 in an interest-
earning bank account. Assume that you have not withdrawn any of
your money since then and now you have $4,834.92. What was the
annual interest rate you earned during the last ten years assuming
the bank calculates and adds interest to your account once every
year?

1.)Calculate the annual compound interest rate if you invest
$100 today and the value grows to $120 two years from now. Two
decimals, whole percent (e.g. 5.23).
2.)How many years will it take $100 to grow to $133.82, if
annual compound interest is 6%? # no decimals
3.)Calculate the future value of $100 invested today for 3
years, where the nominal annual interest rate of 4% is compounded
quarterly? To two decimals.
4.)Your friend borrowed $5,000 three years ago and...

Ten
years ago, Hailey invested $1,500 and locked in an annual interest
rate of 9 percent for 30 years (ending 20 years from now). Aidan
can make a 20 year investment today and lock in an interest rate of
10 percent. How much money should he invest now in order to have
the same amount of money in 20 years as Hailey

Today, you opened up a local bank account. Your plan is to make
five $1,000 contributions to this account. The first $1,000
contribution will occur today and then every 6 months you will
contribute another $1,000 to the account. The bank account
pays 6% nominal annual interest, and the interest is compounded
monthly. After 2 years, you plan to leave the money in the
account earning interest, but you will not make further
contributions to the account. How much will...

1. You originally opened a savings account with a $4,000
deposit. Today the account has a balance of $10,000. 7 years have
passed since you opened the account. What rate of interest have you
earned assuming the account has compounded annually?
2.You just deposited $5,000 into an account. If you allow the
money to grow for 9 years, what will be your ending account
balance? Assume the account has earned 8% compounded quarterly.
3.You originally opened a savings account with...

Two years ago, you opened an investment account and deposited
$5,000. One year ago, you added another $2,000 to the account.
Today, you are making a final deposit of $7,500. How much will you
have in this account three years from today if you earn a 14
percent rate of return?

SHOW ALL WORK
Ten years ago, Bruce invested $1,250. Today, the investment is
worth $3,550. If interest is compounded annually, what annual rate
of return did Bruce earn on his investment?

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