Question

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?

Answer #1

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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 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 ?

Please show me how to do number 2.
$12,000 is deposited in a bank account that pays 9% nominal
interest per year. Assume interest compounds monthly.
1. How much is in the account after 8 years?
(a) $24,600
(b) $25,200
(c) $26,300
(d) $27,700
2. What nominal annual interest would be required for the
account to reach $30,000 in 8 years?
(a) 10.12%
(b) 10.88%
(c) 11.51%
(d) 12.26%
What nominal annual interest would be required for the account
to...

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account today, you will receive $20,000 10 years from now. What is
the average interest rate that the bank will pay...

How much money should be deposited annually in a bank account
for five years if you wish to withdraw $5,000 each year for three
years, beginning five years after the last deposit? The interest
rate is 3% per year

1. A $1,000bond pays 4 3/4% simple interest per year. What is
the total amount paid after six years?
2.A friend borrows $2,500, agreeing to pay3.85% simple interest.
The loan, plus interest, is to be paid back in seven years. How
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total after the seven years?
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How much money should be deposited annually in a bank account
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An engineer is on the verge of retirement. She saved $ 100,000 which is
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John deposited an amount of $1000 in a bank. Seven years later,
John went to the bank and found that his account increased to
$2000. (a) If the bank pays the interest continuously, what are the
nominal interest rate and the effective interest rate per year? (b)
If the bank pays the interest per month, what are the nominal and
effective interest rates per year.

John deposited an amount of $1000 in a bank. Seven years later,
John went to the bank and found that his account increased to
$2000. (a) If the bank pays the interest continuously, what are the
nominal interest rate and the effective interest rate per year? (b)
If the bank pays the interest per month, what are the nominal and
effective interest rates per year.

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