Question

Suppose you deposited $5000 on January 1, 2014, in a savings account paying 5% annual interest,...

Suppose you deposited $5000 on January 1, 2014, in a savings account paying 5% annual interest, with interest credited to the account on December 31 of each year. On January 1, 2016, the annual interest rate changes to 4.25%. What wil be the balance in your account on January 1, 2030?
Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
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
Similar Questions
On January 1, 2016, you deposited $5,100 in a savings account. The account will earn 11...
On January 1, 2016, you deposited $5,100 in a savings account. The account will earn 11 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2016 and in 2017?
On January 1, 2014, Shannon Company completed the following transactions (assume a 14 percent annual interest...
On January 1, 2014, Shannon Company completed the following transactions (assume a 14 percent annual interest rate): (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) a. Bought a delivery truck and agreed to pay $55,000 at the end of three years. b. Rented an office building and was given the option of paying $11,600 at the end of each of the next three years or paying $28,000...
1. Andrew and Emma Garfield invested $6,800 in a savings account paying 5% annual interest when...
1. Andrew and Emma Garfield invested $6,800 in a savings account paying 5% annual interest when their daughter, Angela, was born. They also deposited $1,500 on each of her birthdays until she was 14 (including her 14th birthday). How much was in the savings account on her 14th birthday (after the last deposit)? (Round answer to 2 decimal places, e.g. 25.25.) 2. Gleason Enterprises issued 8%, 6-year, $2,400,000 par value bonds that pay interest semiannually on October 1 and April...
Greg deposited $700 in his new savings account with the annual interest rate of 8% on...
Greg deposited $700 in his new savings account with the annual interest rate of 8% on April 1, 2019 (A) The interest for this savings account is compounded once every two months. Find the balance on this account on October 1, 2023 rounded to the nearest cent. (B) With the assumptions in (A), how many years does it take for the initial investment to triple? round to one decimal place
10. Suppose you invested $2,000 in a CD on January 1, 2016 maturing 5 years that...
10. Suppose you invested $2,000 in a CD on January 1, 2016 maturing 5 years that pays interest of 4% per year compounded monthly and credited at the end of each month. You don't withdraw any money for the CD during the term. (a.) How much money will be in the CD account on January 1, 2021? (b.) What is the effective annual rate of interest on this CD?
Mark deposits $1,700 into an account on January 1, 2005. The account credits interest at an...
Mark deposits $1,700 into an account on January 1, 2005. The account credits interest at an effective anual rate of 4.2% every December 31. Mark withdraws $230 on January 1, 2007, deposits $120 on January 1, 2008, and withdraws $310 on January 1, 2010. What is the balance in the account just after interest is credited on December 31, 2011?
Suppose that $5000 is placed in a savings account at an annual rate of 6% ,...
Suppose that $5000 is placed in a savings account at an annual rate of 6% , compounded semiannually. Assuming that no withdrawals are made, how long will it take for the account to grow to $6500 ?
Suppose a savings account earns 3% interest compounded monthly. After the first month $100.00 is deposited...
Suppose a savings account earns 3% interest compounded monthly. After the first month $100.00 is deposited into the account. Each subsequent month the deposit increases by 1%. Thus, in month 2, $101.00 is deposited, and in month 3, $102.01 is deposited. Find the account balance after 2 years if initially there is $400 in the account.
Suppose you deposited $4,000 in a savings account earning 2.0% interest compounding daily. How long will...
Suppose you deposited $4,000 in a savings account earning 2.0% interest compounding daily. How long will it take for the balance to grow to $11,000? Answer in years rounded to two decimal places. (e.g., 2.4315 years --> 2.43) If the applicable discount rate is 5.0%, what is the present value of the following stream of cash flows? Round to the nearest cent. Cash Flow Year 1: $1,000 Cash Flow Year 2: $5,000 Cash Flow Year 3: $6,000 You plan to...
Suppose that, in March 2018, you had deposited $1000 in a savings account (and left it...
Suppose that, in March 2018, you had deposited $1000 in a savings account (and left it there until March of this year) and the bank paid an interest rate of 2% on that savings. What nominal interest rate did you earn? What real interest rate did you earn? Was it a good decision on your part, why or why not?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT