Question

1. For long term deposits, Commercial Bank pays 6.5% per annum, while Bank National pays 6.4%per...

1. For long term deposits, Commercial Bank pays 6.5% per annum, while Bank National pays 6.4%per annum compounded monthly. A bad decision will lead to your savings deposit of $10,000 for 5 years, being less by ----------------$ Answer (nearest dollar) in ??? bank.

2. For long term deposits, Global Savings Bank pays 6.5% per annum, while Bank International pays 6.25%per annum compounded monthly. A good decision will lead to your savings deposit of $10,000 for 5 years, having an extra-----------------------$ Answer (nearest dollar) in ??? bank.

Business   Finance   
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
For long term deposits, Commercial Bank pays 6.5% per annum, while Bank National pays 6.4%per annum...
For long term deposits, Commercial Bank pays 6.5% per annum, while Bank National pays 6.4%per annum compounded monthly. A bad decision will lead to your savings deposit of $10,000 for 5 years, being less by $ Answer (nearest dollar) in ??? bank.
For long term deposits, Global Savings Bank pays 6.5% per annum, while Bank International pays 6.25%per...
For long term deposits, Global Savings Bank pays 6.5% per annum, while Bank International pays 6.25%per annum compounded monthly. A good decision will lead to your savings deposit of $10,000 for 5 years, having an extra $ Answer (nearest dollar) in ??? bank.
Burt deposits $10,000 into a bank account today. The account earns 4% per annum compounding daily...
Burt deposits $10,000 into a bank account today. The account earns 4% per annum compounding daily for the first 2 years, then 4.5% per annum compounded quarterly thereafter. No further deposits or withdrawals will be made. For this question, assume all months are of equal length and ignore leap years. (c) Calculate the account balance 2.5 years from today. (D)  Calculate the account balance 9 years from today.
Burt deposits $10,000 into a bank account today. The account earns 4% per annum compounding daily...
Burt deposits $10,000 into a bank account today. The account earns 4% per annum compounding daily for the first 2 years, then 4.5% per annum compounded quarterly thereafter. No further deposits or withdrawals will be made. For this question, assume all months are of equal length and ignore leap years. (a) Calculate the account balance six months from today. (b) Calculate the account balance 2 years from today. (c) Calculate the account balance 2.5 years from today. (d) Calculate the...
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?
11. EFFECTIVE VERSUS NOMINAL INTEREST RATES Bank A pays 6.5% interest compounded annually on deposits, while...
11. EFFECTIVE VERSUS NOMINAL INTEREST RATES Bank A pays 6.5% interest compounded annually on deposits, while Bank B pays 6% compounded daily. a. Based on the EAR (or EFF%), which bank should you use? (Select From I-V) You would choose Bank A because its EAR is higher. You would choose Bank B because its EAR is higher. You would choose Bank A because its nominal interest rate is higher. You would choose Bank B because its nominal interest rate is...
*Burt deposits $10,000 into a bank account today. The account earns 4% per annum compounding daily...
*Burt deposits $10,000 into a bank account today. The account earns 4% per annum compounding daily for the first 3 years, then 3.5% per annum compounded quarterly thereafter. No further deposits or withdrawals will be made. For this question, assume all months are of equal length and ignore leap years. (a) Calculate the account balance six months from today. (b) Calculate the account balance 3 years from today. (c) Calculate the account balance 3.5 years from today. (d) Calculate the...
Burt deposits $10,000 into a bank account today. The account earns 4.5% per annum compounding daily...
Burt deposits $10,000 into a bank account today. The account earns 4.5% per annum compounding daily for the first 4 years, then 3.5% per annum compounded quarterly thereafter. No further deposits or withdrawals will be made. For this question, assume all months are of equal length and ignore leap years. (a) Calculate the account balance six months from today. (b) Calculate the account balance 4 years from today. (c) Calculate the account balance 4.5 years from today. (d) Calculate the...
eBook Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9.5% compounded...
eBook Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9.5% compounded daily. a. Based on the EAR (or EFF%), which bank should you use? You would choose Bank A because its EAR is higher. You would choose Bank B because its EAR is higher. You would choose Bank A because its nominal interest rate is higher. You would choose Bank B because its nominal interest rate is higher. You are indifferent between the banks and...
Bank A pays 6% interest compounded annually on deposits, while Bank B pays 5.75% compounded daily....
Bank A pays 6% interest compounded annually on deposits, while Bank B pays 5.75% compounded daily. a. Based on the EAR (or EFF%), which bank should you use? I. You would choose Bank A because its EAR is higher. II. You would choose Bank B because its EAR is higher. III].You would choose Bank A because its nominal interest rate is higher. IV. You would choose Bank B because its nominal interest rate is higher. V. You are indifferent between...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT