Question

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
5^{th} year is

Answer #1

Amount Deposited in Bank(Invested Amount) = $1000

Interest Rate offered bt=y bank = 12% compounded monthly

Calculating the Amount of money in account in 5th year:-

Where, Invested AMount = $1000

r = Periodic Interest rate = 2%

n= no of periods = 5

m = no of times compounding in a year = 12

Future Value = $1000*1.81669669856

**Future Value = $1816.70**

**So, amount in account in 5th year is
$1816.70**

*If you need any clarification, you can ask in
comments. *

**If you like my answer,
then please up-vote as it will be
motivating**

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 Assume that you have not withdrawn any of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?

There are four banks: A, B, C and D:
• Bank A offers an effective annual rate of 4.02%.
• Bank B offers a nominal annual interest rate of 4 %
compounded semiannually.
• Bank Coffers a nominal annual discount rate of 3.96%
compounded monthly.
• Bank D offers a nominal annual interest rate of 3.98%
compounded continuously.
(a) According to this ir rmation, where would you prefer to
open a savings account? Justify your answer. [4 marks]
(b) If...

A woman deposited $ 1000 in her bank account. The money remained
on the account for 10 years. During the first 5 years, the monthly
compound processed an annual nominal 15% interest. After this
period, the bank changed its interest policy and quarterly compound
processed 18% nominal interest rate annually. Calculate the money
accumulated in the account after 10 years.

IN220 Bank offers you a 10-year loan for 1,000,000 Baht at an
annual interest rate of 10 percent, compounded monthly. What will
your monthly loan payment be?
100,000.00
8,333.33
13,215.07
162,745.39

Assume that you deposit $1,000 in a bank account that promises a
fixed rate of interest of 4% per year for 10 years with annual
compounding. You want to know the balance in your account at the
end of 10 years. Assume that you do not make any withdrawals and
that the bank stays solvent for 10 years (and thus can keep its
promise to pay you in 10 years). Across the street, the savings
& loan offers a similar...

Bank A offers a nominal annual interest rate of 4% compounded
daily, while Bank B offers continuous compounding at a 3.4% nominal
annual rate. If you deposit $5,000 with each bank, what will be the
difference in the two bank account balances after 3 years?

An
amount of 1000 is deposited into Fund X, which earns an effective
annual interest rate of 6%. At the end of each year, the interest
earned plus an additional 100 is withdrawn from the fund. At the
end of the tenth year, the fund is depleted. The annual withdrawals
of interest and principal are deposited into Fund Y, which earns an
effective annual interest rate of 9%. Determine the accumulated
value of Fund Y at the end of year...

Steven has just deposited $ 10,000 in a bank account that has a 12%
monthly interest rate. What's in the account within 3
years

Bank accounts A and B have the same annual percentage interest.
Account A pays interest monthly and B pays interest quarterly. If
the same amount of money is deposited into both accounts, one year
later, account A will generate more interest than B. True or False?
Why?

Prescott Bank offers you a five-year loan for $56,000 at an
annual interest rate of 6.75 percent. What will your annual loan
payment be?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 10 minutes ago

asked 30 minutes ago

asked 41 minutes ago

asked 48 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago