Question

PLEASE SHOW ON EXCEL AND FUNCTIONS   You are looking at three savings accounts. Account 1 pays...

PLEASE SHOW ON EXCEL AND FUNCTIONS  

  1. You are looking at three savings accounts. Account 1 pays 5.25%, with daily compounding, account 2 pays 5.3% with semiannual compounding, and account 3 pays 5.24% with continues compounding. What is the effective annual rate for each of the three accounts?

(Your answers must be formatted as percentages with two decimal places)

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
1. If a bank advertises a savings account that pays a 6% nominal interest rate compounded...
1. If a bank advertises a savings account that pays a 6% nominal interest rate compounded continuously, what is the effective annual percentage rate? 2. Bank A offers a nominal annual interest rate of 5% compounded daily, while Bank B offers continuous compounding at a 4.6% nominal annual rate. If you deposit $3,000 with each bank, what will be the difference in the two bank account balances after two years? (Show ALL work and formulas used!)
You have invested money in a savings account that pays a fixed monthly interest on the...
You have invested money in a savings account that pays a fixed monthly interest on the account balance. The following table shows the account balance over the first 5 months. Time in months Savings balance (0,$1600.00) (1,$1628.80) (2, $1658.12) (3, $1687.97) (4, $1718.35) (5, $1749.28) (a) How much money was originally invested? $ (b) Show that the data are exponential. (Round your answer to three decimal places.) Each successive ratio of new/old is , which shows that the data is...
6a. Suppose your bank pays you 1% interest on your savings account every three months. What...
6a. Suppose your bank pays you 1% interest on your savings account every three months. What is your compound annual interest rate? b. Suppose you have an investment which doubled in value in four years. What is your compound annual rate of return?
The calculations have to be using Excel. 1)You are looking at five different banks offering the...
The calculations have to be using Excel. 1)You are looking at five different banks offering the following rates: (make sure you show at least 2 decimal places in your answers) Bank 1.         8% with semiannual compounding Bank 2.        7.91% with monthly compounding Bank 3.         7.89% with continuous compounding a. Which bank would you borrow from and why? b. Which bank would you invest in and why? 2)You owe $63,000 at 4.8%. You decided to pay off the loan...
Please show in excel with equations! 1) A Chemical company manufactures three chemicals: A, B, and...
Please show in excel with equations! 1) A Chemical company manufactures three chemicals: A, B, and C. These chemicals are produced via two production processes: 1 and 2. Running process 1 for an hour costs $400 and yields 300 units of A, 100 unit of B, and 100 unit of C. Running process 2 for an hour costs $100 and yields 100 unit of A and 100 unit of B. To meet customer demands, at least 1000 units of A,...
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...
You are considering three alternative banks in which to open a savings account. The first bank...
You are considering three alternative banks in which to open a savings account. The first bank offers you an annual rate r1, and the interest is paid monthly. The second bank offers a rate r2, and the interest is paid daily. The third bank offers a rate r3, and it offers continuous compounding. Give all answers to four decimal places. 1) Suppose you were to save $500.0000 in the first bank. The interest rate is r1=8.0000%. Three years from now,...
PLEASE SHOW WORK FOR THE QUESTIONS BELOW Question 1 If you invest $14,441 today at an...
PLEASE SHOW WORK FOR THE QUESTIONS BELOW Question 1 If you invest $14,441 today at an interest rate of 5.99 percent, compounded daily, how much money will you have in your savings account in 3 years? Round the answer to two decimal places. Question 2 To what amount will the following investment accumulate? $38,756, invested today for 19 years at 10.42 percent, compounded monthly. Round the answer to two decimal places. Question 3 You placed $4,067 in a savings account...
Please answer the 8 questions. Thank you! 1. Cullumber, Inc., has issued a three-year bond that...
Please answer the 8 questions. Thank you! 1. Cullumber, Inc., has issued a three-year bond that pays a coupon rate of 9.4 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.0 percent, what is the market value of the bond? Round answer to 2 decimal places 2. Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 11.6...
In your answers, you should properly show your work by writing down your entries into the...
In your answers, you should properly show your work by writing down your entries into the calculator. For instance, if you use the TVM worksheet of your financial calculator to compute how long it takes to double your account balance given 5% annual interest rate, you should write down your entries as: I/Y=5, PV=-1, PMT=0, FV=2, CPT N=? --- the question mark here stands for your answer to the question. Question 1 - Basic Setting [2 points] Change the number...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT