Question

Assume that ten years ago, you deposited $2,600 in an interest- earning bank account. Assume that...


Assume that ten years ago, you deposited $2,600 in an interest- earning bank account. Assume that you have not withdrawn any of your money since then and now you have $4,834.92. What was the annual interest rate you earned during the last ten years assuming the bank calculates and adds interest to your account once every year?

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
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? b) How much money do you have in your account today? c) If you wish to have $85,000 now,...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: 1. a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? 2. b) How much money do you have in your account today? 3. c) If you wish to...
Rick deposited $2,600 into an account 8 years ago for an emergency fund. Today, that account...
Rick deposited $2,600 into an account 8 years ago for an emergency fund. Today, that account is worth $4,025. What annual rate of return did Rick earn on this account assuming no other deposits and no withdrawals?
An account paying annual compound interest was opened with $1,000 ten years ago. Today, the account...
An account paying annual compound interest was opened with $1,000 ten years ago. Today, the account balance is $1,500. a) What annual interest rate did the account pay? b) How many years will it take to double the money you currently have? Assume you continue to earn the same interest rate you did over the last ten years
Five years ago, you put $20,000 into an interest-earning account. The interest rate is compounded monthly....
Five years ago, you put $20,000 into an interest-earning account. The interest rate is compounded monthly. Today your deposit is worth $30,000. What is the effective annual interest earned on the account? please show how to solve using finance calculator.
Twenty years ago, your grandfather deposited $500 in a savings account earning 4% annually, with interest...
Twenty years ago, your grandfather deposited $500 in a savings account earning 4% annually, with interest compounded on a quarterly basis. What is that savings account worth today? What would the savings account be worth if interest were compounded monthly?
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. Your parents deposited $100 in a bank account for you when you were born. For...
1. Your parents deposited $100 in a bank account for you when you were born. For the first 16-years of your life, the interest rate earned on the account was 6.5%. Since then, rates have fallen considerably and have averaged just 3%. Now you are 30-years of age and want to cash in to fund your property deposit. How much is in your account?
5. Your bank balance is exactly $10,000. Three years ago you deposited $7,938 and have not...
5. Your bank balance is exactly $10,000. Three years ago you deposited $7,938 and have not touched the account since. What annually compounded rate of interest has the bank been paying? Group of answer choices 8.65% 26.00% 8.00% 6.87% 6. Which of the following interest rates will come closest to doubling invested money in five years? Group of answer choices 13% 14% 15% 16%
Assume that you deposited $1000 in a bank that offers you 12% annual interest rate. 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
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT