Question

Suppose you put $2000 in a savings account at an APR of 6% compounded monthly. Fill in the table below. (Calculate the interest and compound it each month rather than using the compound interest formula. Round your answers to the nearest cent.)

Please fill in all areas that have a $ sign

Month |
Interest Earned |
Balance |
---|---|---|

$2000 | ||

1 |
$ | $ |

2 |
$ | $ |

3 |
$ | $ |

Answer #1

If you earn 6% (0.06) interest in 12 months, you earn 0.06/12 = 0.005 (0.5%) interest each month.

For month 1:

Interest = Balance from month 1 * Rate * Time = $2000*(0.005)*(1 month) = $10

Balance = Balance from month 1 + Interest from month 2 = $2000 + $10 = $2010

For month 2:

Interest = Balance from month 1 * Rate * Time = $2010*(0.005)*(1 month) = $10.05

Balance = Balance from month 1 + Interest from month 2

= 2010 + 10.05 = 2020.05

For month 3

Interest = Balance from month 2 * Rate * Time = $2020.05*(0.005)*(1 month) = $10.1

Balance = Balance from month 2 + Interest from month 3

= 2020.05 + 10.1 = 2030.15

You
currently have $1000 in your savings account. The APR on your
savings account is 9%, and the interest is compounded monthly. If
the annual inflation rate is 6%, how much your current savings will
become in real terms (i.e., in today's dollars) one year from now?
Round your answer to the nearest cent; do not use the $ sign (i.e.,
if the result is $1,234.5678, enter it as 1,234.57).

If you deposit $2000 in a savings account that pays an interest
equal to 6% Compounded continuously. Whats the balance at the end
of 3 years?

Suppose a savings account earns 3% interest compounded monthly.
After the first month $100.00 is deposited into the account. Each
subsequent month the deposit increases by 1%. Thus, in month 2,
$101.00 is deposited, and in month 3, $102.01 is deposited. Find
the account balance after 2 years if initially there is $400 in the
account.

Five years ago, you put $20,000 into an interest-earning
account. The interest rate is compounded monthly. Today your
deposit is worth $30,000. What is the effective annual interest
earned on the account? please show how to solve using finance
calculator.

Suppose you have an account that pays an APR of 4% compounded
monthly. You begin putting $1000 per month into the account at age
30.
(a) What size nest egg do you build at age 65? Round to the
whole dollar.
(b) If your life expectancy at retirement is 25 years, what will
your monthly income be? Round to the whole dollar.

suppose you invest £105 savings at the start of each month with
interest paid monthly and compounded with a savings rate of 3%.
Work out total savings for 6 and 12 months. Must use formulae for
compound interest and Geometric series to calculate total
investment

Would you rather have a savings account that pays 6% interest
compounded semi-annually or one that pays 6% compounded monthly?
Why?

You deposit that $2000 into an account with APR = 5.5%. Find the
APY with the given types of interest. Round all answers to the
nearest hundredth of a percent.
a) Find the APY using simple interest.
b) Find the APY with quarterly compounding.
c) Find the APY with monthly compounding.
d) Find the APY with daily compounding.
e) Find the APY with compounding every second!

You have just taken out a $28,000 car loan with a 6 %APR,
compounded monthly. The loan is for five years. When you make your
first payment in one month, how much of the payment will go toward
the principal of the loan and how much will go toward
interest? (Note: Be careful not to round any intermediate steps
less than six decimal places.)
When you make your first payment,$__ will go toward the
principal of the loan and $__will...

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?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 35 seconds ago

asked 2 minutes ago

asked 5 minutes ago

asked 14 minutes ago

asked 20 minutes ago

asked 23 minutes ago

asked 23 minutes ago

asked 23 minutes ago

asked 23 minutes ago

asked 23 minutes ago

asked 25 minutes ago

asked 36 minutes ago