Question

Easy Bank offers you a monthly interest rate of 0.30% for deposits, how long does it take to

a) double your money in years?

b) To triple it in years?

Answer #1

FV = PV * (1 + r)^n

(1 + r)^n = FV/PV

n * ln(1 + r) = ln(FV/PV)

n = ln(FV/PV)/ln(1 + r)

a. FV = 2

PV = 1

r = 0.30%

n = ln(FV/PV)/ln(1 + r)

n = ln(2/1)/ln(1 + 0.0030)

n = ln(2)/ln(1.0030)

n = 0.6931471806/0.00299550898

n = 231.3954607474 months

Or it takes 231.3954607474/12 = **19.2829550623**
Years for the money to double.

b. FV = 3

PV = 1

r = 0.30%

n = ln(FV/PV)/ln(1 + r)

n = ln(3/1)/ln(1 + 0.0030)

n = ln(3)/ln(1.0030)

n = 1.0986122887/0.00299550898

n = 366.7531281111 months

Or it takes 366.7531281111 * 12 =
**30.5627606759** years for the money to
triple

New Savings Bank pays 3% interest on its deposits. If you
deposit $1,000 in the bank and leave it there, how long will it
take to double your money?

How long does it take to double your money at 10 percent
interest? How long does it take to quadruple your money?
Present Value
Years
Interest Rate
Future Value
$ 1.00
10%
$2.00
$1.00
10%
$4.00

Your bank offers you a personal loan of $6000 at an interest
rate of 6% compounded monthly. Calculate how long it would take for
the debt to earn at least $895.89 of interest on the loan.
this is the full question

ABC Bank pays 5.16% interest on a CD account. How long it will
take you to triple your money?

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?

There are four banks: A, B, C and D:
• Bank A offers an effective annual rate of 4.02%.
• Bank B offers a nominal annual interest rate of 4 %
compounded semiannually.
• Bank Coffers a nominal annual discount rate of 3.96%
compounded monthly.
• Bank D offers a nominal annual interest rate of 3.98%
compounded continuously.
(a) According to this ir rmation, where would you prefer to
open a savings account? Justify your answer. [4 marks]
(b) If...

Assume that you deposited $1000 in a bank that offers you 12%
annual interest rate. If the bank compounds the interest rate
monthly, the amount of money you find in your account in the
5th year is

6. How long does it take to double your money at 10 percent
interest? How long does it take to quadruple your money?
Input area:
Output area:
Present value
Years
Interest rate
Future value
$
1.00
***?
10%
$
2.00
1.00
***?
10%
4.00

How long would it take to triple your money if the interest rate
was:
5% compounded yearly
5% compounded monthly
5% compounded weekly
5% compounded continuously

Jonathan invests $8,980 in a bank. The bank pays 5.8% interest
compounded quarterly.
(SLO #6)
How long must he leave the money in the bank for it to double?
Round to nearest tenth of a year. Show your work.
How long will it take to triple? Round to nearest tenth of a
year. Show your work.
If Jonathan is given the choice to invest his money at 5.8%
interest compounded quarterly for 5 years or invest his money
compounding...

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