Question

Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on...

Suppose you deposited $5,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose you decide to deposit $16,000 into a savings account that pays a nominal rate of...
Suppose you decide to deposit $16,000 into a savings account that pays a nominal rate of 7.80%, but interest is compounded daily. Based on a 365-day year, how much would you have in your account after six months? (Hint: To calculate the number of days, divide the number of months by 12 and multiply by 365.) $16,304.43 $16,470.80 $16,637.17 $16,969.91
On October 1, 2009, you deposited $5,000 into an account that pays 4.5% interest compounded quarterly....
On October 1, 2009, you deposited $5,000 into an account that pays 4.5% interest compounded quarterly. On what date will the account be worth $6,200? Assume that simple interest is allowed for a fraction of a period and give answer to the nearest day. Use a 360-day year.
*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...
Suppose you deposited $4,000 in a savings account earning 2.0% interest compounding daily. How long will...
Suppose you deposited $4,000 in a savings account earning 2.0% interest compounding daily. How long will it take for the balance to grow to $11,000? Answer in years rounded to two decimal places. (e.g., 2.4315 years --> 2.43) If the applicable discount rate is 5.0%, what is the present value of the following stream of cash flows? Round to the nearest cent. Cash Flow Year 1: $1,000 Cash Flow Year 2: $5,000 Cash Flow Year 3: $6,000 You plan to...
Suppose you deposited $4,000 in a savings account earning 2.1% interest compounding daily. How long will...
Suppose you deposited $4,000 in a savings account earning 2.1% interest compounding daily. How long will it take for the balance to grow to $11,000? Answer in years rounded to two decimal places.
. Nonannual compounding period The number of compounding periods in one year is called compounding frequency....
. Nonannual compounding period The number of compounding periods in one year is called compounding frequency. The compounding frequency affects both the present and future values of cash flows. An investor can invest money with a particular bank and earn a stated interest rate of 6.60%; however, interest will be compounded quarterly. What are the nominal, periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate    Periodic rate    Effective annual rate    You want to...
1. Suppose you deposited $13,000 in a savings account earning 2.7% interest compounding daily. How long...
1. Suppose you deposited $13,000 in a savings account earning 2.7% interest compounding daily. How long will it take for the balance to grow to $26,000? Answer in years rounded to one decimal place. 2. What is the Profitability Index of a project that costs $43,000 today and is expected to generate annual cash inflows of $5,000 for the following 10 years. Assume the company's WACC is 8%. Round to two decimal places. 3. What is the price of a...
An Engineer deposited $12,000 in a bank saving account that pays 3% per quarter. a) How...
An Engineer deposited $12,000 in a bank saving account that pays 3% per quarter. a) How much money the engineer will find in his account after 4 years? b) What will be the effective interest rate per six months? c) What will be the effective interest rate per year?
You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded...
You just deposited $2,500 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now? a. $17,679.55 b. $16,837.67 c. $18,563.53 d. $15,234.08 e. $16,035.88
You just deposited $13,000 in a bank account that pays a 4.0% nominal interest rate, compounded...
You just deposited $13,000 in a bank account that pays a 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, how much will be in the account three years (12 quarters) from now? Select the correct answer. a. 27,900.74 b. 27,884.14 c. 27,867.54 d. 27,917.34 e. 27,850.94
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT