Question

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 years at a rate of 5% p.a. compounded quarterly. How much will be in your account just after you make your last deposit?

Answer #1

1)

Value of the deposits = Initial amount*(1+Annual interest rate/Number of compoundings per year)^*Number of compoundings per year*Number of years)

Value of the deposits = 10000*((1+0.07/4)^(4*4.41666))*((1+0.06/12)^(3*12))

**Value of the deposits = $16258.70**

2)

Equivalent annual rate = (1+Annual interest rate/Number of compoundings per year)^(Number of compoundings per year)

Equivalent annual rate = ((1+7.5%/12)^12)-1

Equivalent annual rate **=**
7.763**%**

7.693**%** +1 **= (1+Annual interest rate
compounded quarterly/4)^(4)**

**Annual interest rate compounded quarterly = 7.480%**

3)

Using a financial calculator

PV = 0

PMT = 500

N = 28 (7years*4 contributions per year = 28periods)

I/Y = 5/4 (5%/4 = 1.25% rate per quarterly period)

cpt FV, we get FV = 16639.69

Hence, last deposit **$16639.69** is
accumulated

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?

You deposit $2000 in an account earning 3% interest compounded
monthly
How much will you have in the account in 20 years?
How much interest will you earn?
You deposit $10,000 in an account earning 4% interest compounded
monthly.
How much will you have in the account in 25 years?
How much interest will you earn?

Today you made a $10,000 deposit into an account earning 6.4%,
compounded quarterly. What will be the future
value after 5 years?
Provide your answer as a POSITIVE value, with at least two
digits to the right of the decimal. Do not include any symbols or
punctuation.

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?

2.
300 dollars is deposited every quarter for seven years.
Interest is 4% per year compounded quarterly.
What is the future value of this annuity.
nearest whole number
4.
Suppose the monthly interest rate is 4.6% / 12 =.003833 (
approximately).
To attain a future value of 40000 dollars in ten years, what
should the monthly deposits be, if interest is compounded
monthly?
2 decimal number, no $ sign.
6.
How many times must a yearly deposit of 1250 dollars...

1) You deposit $500 each month into an account earning 3%
interest compounded monthly.
a) How much will you have in the account in 25 years?
b) How much total money will you put into the account?
c) How much total interest will you earn?
2) Suppose you invest $190 a month for 6 years into an account
earning 7% compounded monthly. After 6 years, you leave the money,
without making additional deposits, in the account for another 21
years....

You have $8000 in your savings account which earns interest at
2.9% p.a. compounded quarterly. How many years does it take for you
to earn total interest of $500? (Round your answer to 2 decimal
places. Do not put unit. Do not use comma separators. e.g. 1234.56)
Answer: Make sure you round up to 2 decimal placese please

Ted deposited $1750 in an RRSP on March 1, 2014, at 3%
compounded quarterly. Subsequently the interest rate was changed
to 4% compounded monthly on September 1, 2016, and to 4.5%
compounded semi-annually on June 1, 2018. What was the value of
the RRSP deposit on December 1, 2020, if no further changes in
interest were made?

1. For the next 6 years, you pan to make equal quarterly
deposits of $600.00 into an account paying 8% compounded quarterly.
How much will be the total you have at the end of the time?
2. How much money will you have to deposit now if you wish to
have $5,000 at the end of 8 years. Interest is to be at the rate of
6% compounded semiannually?
3. In the California “Million Dollar Lottery” a winner is paid...

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?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 1 minute ago

asked 17 minutes ago

asked 20 minutes ago

asked 21 minutes ago

asked 21 minutes ago

asked 23 minutes ago

asked 28 minutes ago

asked 33 minutes ago

asked 42 minutes ago

asked 46 minutes ago

asked 1 hour ago

asked 1 hour ago