Question

If the interest paid on an account is 10% compounded annually, $6,902 now is basically equivalent...

If the interest paid on an account is 10% compounded annually, $6,902 now is basically equivalent to $11,119 five years from now. True False

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

False ,as the $6,902 now will be $ 11,116 not $11,119 five years from now compunded at 10% annually

Calculations

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks.

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
You just deposited $25,000 in a bank account that pays a 12.0% nominal interest rate, compounded...
You just deposited $25,000 in a bank account that pays a 12.0% nominal interest rate, compounded semi-annually. If you also add another $3,000 to the account each year over the next five years, how much will be in the account five years from now? Show all your work.
What is the future value of $100 invested at 10% compounded annually for 3 years? What...
What is the future value of $100 invested at 10% compounded annually for 3 years? What is the future value of $100 invested at 10% compounded annually for 10 years? What is the present value of an investment that will give you $100 after 10 years with a rate of 10% compounded annually? You end up with $20,000 after investing for 20 years at 8% annually. What was the PV? Maverick Jane places $800 in a savings account paying 6%...
A savings account pays interest at the rate os 5% per year, compounded semi-annually. The amount...
A savings account pays interest at the rate os 5% per year, compounded semi-annually. The amount that should be deposited now so that R250 can be withdrawn at the end of every six months for the next 10 years is
Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years...
Problem 1.10 You deposit $5,000 in an account that earns 5% interest compounded annually in years 1 and 2, and thereafter a continuous rate δ(t) = 2/(t + 1) (t ≥ 0). What is the value of the account after 5 years? Problem 1.11 Suppose an initial investment of $100 grows according to the accumulated amount function A(t) = 100(1 + 0.05t) (t ≥ 0). (a) Find the effective rate of interest earned during the 5th year i5. (b) Find...
if $1000 invested in an account with 9% interest compounded annually, proximately how many years will...
if $1000 invested in an account with 9% interest compounded annually, proximately how many years will it take for the amount to double? a. slightly more than eight years b. exactly nine years c. five years d. slightly less than seven years
At a certain interest rate compounded semi- annually, P5,000 will amount to P20,000 after 10 years....
At a certain interest rate compounded semi- annually, P5,000 will amount to P20,000 after 10 years. Find a) the nominal interest rate b) the effective interest rate c) the equivalent amount after 15 years. Answer P40,029.72
Justin invests $3,000 in a savings account. The account pays 3% interest compounded annually. How much...
Justin invests $3,000 in a savings account. The account pays 3% interest compounded annually. How much money will be in the account at the end of the 8 years
Lee Holmes deposited $15,600 in a new savings account at 11% interest compounded annually. At the...
Lee Holmes deposited $15,600 in a new savings account at 11% interest compounded annually. At the beginning of 4 years, Lee deposited in additional $40,600 at 11% interest compounded semiannually. At the end of 6 years what is the balance in Lee’s account? (Do not round intermediate calculations. Round your answer to the nearest cent.)
Scheduled payments of $1400 due today and $1600 due with interest at 11.5% compounded annually in...
Scheduled payments of $1400 due today and $1600 due with interest at 11.5% compounded annually in five years are to be replaced by two equal payments. The first replacement payment is due in 18 months and the second payment is due in 4 years. Determine the size of the two replacement payments if interest is 11% compounded quarterly and the focal date is 18 months from now.
If $38000 is put in a savings account paying interest of 5% compounded annually, what amount...
If $38000 is put in a savings account paying interest of 5% compounded annually, what amount will be in the account at the end of 5 years? 1- $30878 2- $47500 3- $48120 4- $48499
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT