Question

You have $10,000 to invest for two years. Your bank offers 5% interest, compounded continuously for...

You have $10,000 to invest for two years. Your bank offers 5% interest, compounded continuously for funds in a money market account. Assuming no additional deposits or withdrawals, how much money will be in that account at the end of two years?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Compute the future value of money deposited, using the equation as shown below:

Future value = Amount deposited*eRate*Time

                      = $10,000*e5%*2 years

                      = $10,000*1.1051709180756

                      = $11,051.709180756

Hence, the future value of the amount deposited will be $11,051.709180756.

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
Bank-Keys offers 3.45% interest compounded daily on deposits, while Bank-Hunted offers 3.50% interest compounded semi-annually. Which...
Bank-Keys offers 3.45% interest compounded daily on deposits, while Bank-Hunted offers 3.50% interest compounded semi-annually. Which bank would you invest your money? Why? Note: To answer this question you can not invest any dollar and then see the amount you will have. Question doesn’t provide how much money you will invest?
Suppose you invest $140 a month for 5 years into an account earning 6% compounded monthly....
Suppose you invest $140 a month for 5 years into an account earning 6% compounded monthly. After 5 years, you leave the money, without making additional deposits, in the account for another 26 years. How much will you have in the end?
You invest $50 in a bank account for 5 years, with interest compounded monthly. How much...
You invest $50 in a bank account for 5 years, with interest compounded monthly. How much will you have at the end? compute the future values for interest rates of 0% to 10%, in 1% increments. Which of the following accurately displays these calculations? how would you solve in calculator
Mega-Mergers-R-Us State Bank pays 4% annual interest, compounded monthly, on savings accounts. If you deposit $10,000...
Mega-Mergers-R-Us State Bank pays 4% annual interest, compounded monthly, on savings accounts. If you deposit $10,000 into an account and make no further deposits or withdrawals, how much interest will you have earned in total after 5 years?
suppose you invest $190 at the end of each month for 5 years into an account...
suppose you invest $190 at the end of each month for 5 years into an account earning 7% annual interest compounded monthly. After 5 years, you leave the money, without making additional deposits, in the account for another 21 years. How much will you have in the end?
You have deposited $10,000 in a bank earning interest at 7% p.a. compounded quarterly for four...
You have deposited $10,000 in a bank earning interest at 7% p.a. compounded quarterly for four years and five months. At that time, the interest rate changes to 6% p.a. compounded monthly. What is the value of the deposit three years after the change in the rate of interest? What nominal annual rate compounded quarterly is equivalent to 7.5% p.a. compounded monthly? You have decided to deposit $500 in the Montreal bank at the end of each quarter for seven...
1)We invest $50 per month in an account that pays 3% interest per year compounded continuously....
1)We invest $50 per month in an account that pays 3% interest per year compounded continuously. How much is our account worth after 7 years? Round your answer to the nearest penny. 2)We invest $50 per month in an account that pays 3% interest per year compounded continuously. If we make these deposits for 7 years, what is the present value of this account? Round your answer to the nearest penny.
Six years ago you invested certain amount of money at 10 percent interest, compounded continuously. Six...
Six years ago you invested certain amount of money at 10 percent interest, compounded continuously. Six years later value of your investment was $18,221. How much did you invest? a. $10,000 b. $11,500 c. $10,800 d. $11,200 e. none of the above
Assume that 5 years from now you will need RM2000. Your bank compounds interest at a...
Assume that 5 years from now you will need RM2000. Your bank compounds interest at a 6% annual rate. b. If you want to make equal payments at the end of Years 1 through 5 to accumulate the RM2,000, how large must each of the 5 payments be? c. If your father were to offer either to make the payments calculated in part (b) or to give you a lump sum of RM1,050 one year from now, which would you...
8) If you invest $5,650 in an account paying 8.65% compounded continuously, how much money will...
8) If you invest $5,650 in an account paying 8.65% compounded continuously, how much money will be in the account at the end of 10 years? 9)You have agreed to pay off an $8,000 loan in 30 monthly payments of $298.79 per month. The annual interest rate is 9% on the unpaid balance. a) How much of the rst month's payment will apply towards reducing the principal of $8,000? b)What is the unpaid balance (on the principal) after 12 monthly...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT