Question

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 account balance 10 years from today.

Can you please show all the working out using excel functions. Thank you

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:

Initial deposit = $10,000, interest rate is 4.5% for 4 years and it is compounded daily. All the calculation is given in excel as requested.

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
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...
*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...
Eight months from today you plan to deposit $20,000 into an account with an APR of...
Eight months from today you plan to deposit $20,000 into an account with an APR of 5.5% per year with quarterly compounding. In addition, eleven months from today, you plan to make the first of a series of semiannual deposits into the same account. Your first deposit will equal $4000 and subsequent deposits will grow by 0.5% each. You will make your final deposit five years and five months from today. How much will be in your account six years...
Bethany deposits $1500 into an account today and then $1000 into the account 10 years later....
Bethany deposits $1500 into an account today and then $1000 into the account 10 years later. Assume that interest is credited to the account at a nominal annual interest rate of i^(6), convertible every two months, for the first 5 years, and at a nominal discount rate of 10%, compounded quarterly, thereafter. The accumulated balance in the fund after the 20 years is $10,000. Find i^(6)
Chloe deposits $X into her bank account today. The money is sufficient to support 40 quarterly...
Chloe deposits $X into her bank account today. The money is sufficient to support 40 quarterly withdrawals of $700 starting in 3 months. The interest rate is 5% p.a. compounded quarterly for the first year and 6% p.a. compounded quarterly thereafter. Which of the following equations can be used to find $X (Only one correct answer)? X=700/0.05*(1-1.05^-4)+700/0.06*(1-1.06^-36) X=700/0.0125*(1-1.0125^-4)+700/0.015*(1-1.015^-36) X=700/0.05*(1-1.05^-4)+700/0.06*(1-1.06^-36)*(1.05)^-4 X=700/0.0125*(1-1.0125^-4)+700/0.015*(1-1.015^-36)*(1.0125)^-4 None of the equations gives the correct X. - Calculate X and input your answer below. (Round your answer to...
An investment of ​$4885.45 earns interest at 4​% per annum compounded semi-annually for 4 years. At...
An investment of ​$4885.45 earns interest at 4​% per annum compounded semi-annually for 4 years. At that time the interest rate is changed to 7.2% compounded quarterly. How much will the accumulated value be 4.5 years after the​ change? The accumulated value is ​$. ​(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as​ needed.)
Mr. Gonzales has made beginning-of-year deposits into an investment account for the past 21 years. Each...
Mr. Gonzales has made beginning-of-year deposits into an investment account for the past 21 years. Each deposit was $5500, and the account earned interest at a rate of 4.5% APR, compounded quarterly, each year. Having made his last deposit one year ago, he now plans to transfer all of the accumulated funds today into a money-market account that earns an APR of 1.50% compounded quarterly. If he plans to withdraw $4000 from the account at the end of each quarter...
Your dad deposits $1,000 per month for 15 months in an account paying interest of 5.16%...
Your dad deposits $1,000 per month for 15 months in an account paying interest of 5.16% per year compounded monthly. The payments begin one month from today. What is my account’s balance at the end of 45 months? Please solve mathematically and provide excel functions.
For 2 years, you deposit $45 per month in an account that earns 10% annually with...
For 2 years, you deposit $45 per month in an account that earns 10% annually with monthly compounding. After the first five months, you deposit a $500 lump sum. Six months after that (on month 11), you deposit $1000 into your account. Eight months later (on month 19), you make a $750 deposit. You then move your money to an account that has 3.5% monthly interest compounded weekly. You keep it in this account for 3 years. After this time...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT