Question

How much money must be deposited in saving account each month to accumulate $25,000 at the end of 6 years , if the bank pays interest at the rate of 8% per year compounded

a. monthly ?

b. quarterly ?

Answer #1

How much money must be deposited in saving account each month to
accumulate $25,000 at the end of 6 years , if the bank pays
interest at the rate of 8% per year compounded Monthly? Quarterly
?

How much money will be in an account into which $500 per month
is deposited for 8 years, if the interest rate is 6% compounded
monthly?

How much must be deposited into an account to accumulate to
$32,000 at 7% compounded semiannually
a. at the beginning of each year for 20 years? __________
b. at the end of each month for 20 years? __________
c. If you wish to maximize the amount of interest earned, which
option would you prefer?

* Engineering Economic Analysis
How much money must be invested in an account that pays 6% per
year in- terest to be worth $20,000 at the end of 8 years if
(forgetting leap years and making “convenient” assumptions):
(a) Interest is compounded annually ?
(b) Interest is compounded semi-annually ?
(c) Interest is compounded quarterly ?
On (c), provide the solutions using the Compound interest table
AND the formula AND the EAIR

How much will accumulate in an Individual Retirement Account
(IRA) in 15 years if $5000 is deposited in the account at the end
of each quarter during that time? The account earns 8% annual
interest, compounded quarterly.

An Engineer deposited $12,000 in a bank saving account that pays
3% per quarter.
a) How much money the engineer will find in his account after 4
years?
b) What will be the effective interest rate per six months?
c) What will be the effective interest rate per year?

Present/future value computations
1. How much must be deposited on January 1, 2013 to accumulate a
balance of $50,000 on December 31, 2017? At interest rate of
3.5%
At interest rate of 6%
2. 50,000 is deposited at interest compounded annually what amount
will be on hand in seven years
At 4%? At 8%
2A. What if 50,000 is deposited at interest compounded
semi-annually what amount will be on hand in seven years At 4%? At
8%
3. How much...

How much should be deposited into an account today if it is to
accumulate to $2700 in 6 years if the account earns interest at the
nominal annual rate of 4% compound monthly? Round your answer to
two decimal places.

How much must be deposited at the beginning of each year to
accumulate to $16,000 in six years if interest is at 9%?

4. How much money needs to be deposited into a certificate of
deposit (CD) account to be able to withdraw 50,000.00 from the
account at the end of 10 years if the interest rate is 2%
compounded monthly?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 24 minutes ago

asked 45 minutes ago

asked 45 minutes ago

asked 48 minutes ago

asked 53 minutes ago

asked 55 minutes ago

asked 58 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago