Question

Find the interest earned on $25000.00 invested for 6 years at 4.5% interest compounded as follows.

a. Annually -Compounding annually, the interest earned is

b. Semiannually (twice a year) -Compounding semiannually, the interest earned is

c. Quarterly -Compounding quarterly, the interest earned is

d. Monthly- Compounding monthly, the interest earned is

e. Continuously- . Compounded continuously, the interest earned is

Answer #1

1. How much more interest will be earned if $7000 is invested
for 6 years at 7% compounded continuously, instead of at 7%
compounded quarterly.
2. How long does it take for an account containing $6000 to be
worth $15,000 if the money is invested at 8.4% compounded
monthly?

For a deposit of $1027 at 6.4% over 2 years, find the
interest earned if interest is compounded semiannually,
quarterly, monthly, daily, and continuously.
The interest earned if interest is compounded semiannually
is----
2
Find the present value of the following future amount.
$2000 at 10% compounded annually for 30 years
The present value is-----
3 Suppose a savings and loan pays a nominal rate of
1.4%
on savings deposits. Find the effective annual yield if interest
is compounded quarterly...

If $500 is invested at an interest rate of 3.5% per year, find
the amount of the investment at the end of 10 years for the
following compounding methods. (Round your answers to the nearest
cent.)
(a) Annually
？$
(b) Semiannually
？$
(c) Quarterly
？$
(d) Continuously
？$

If $500 is invested at an interest rate of 5.5% per year, find
the amount of the investment at the end of 15 years for the
following compounding methods. (Round your answers to the nearest
cent.) A.) Annually: $ B.) Semiannually: $ C.) Quarterly: $ D.)
Continuously: $

If $35,500 is invested at 6.8% for 30 years, find the future
value if the interest is compounded the following ways. (Round your
answers to the nearest cent.)
(a) Semiannually
(b)monthly
(c)daily (n=360)
(d) continuously

Ava invested $1750 into an RRSP that earned interest at 5%
compounded semi-annually for eight years.
a) Find the balance of the account at the end of the period.
b) How much interest is earned?
c) What is the effective rate of interest?

Sally invested $1,750 into an RRSP
that earned interest at 5% compounded semiannually for eight
years.
a. Determine the balance
of the account at the end of the period?
_____________
b. How much interest is
earned? ______________
c. What is the effective rate?
_____________

If $250 is invested at 7% compounded (A) annually, (B)
quarterly, (C) monthly, what is the amount after 4 years? How
much interest is earned?

Find the interest rates in the following situations.
a. APR = 8%, compounded monthly. Find the effective annual
interest rate.
b. Nominal rate is 10% compounded quarterly. Find the effective
semiannual rate.
c. The effective annual interest rate is 11.02% and compounding
is monthly. Find the nominal interest rate.
d. r = 6% and compounding is monthly. Find the effective
quarterly interest rate.

You deposit $300 in an account earning 7% coumpound interest for
2 years. Find the future value and the interest earned for each of
the following compounding frequencies. Use the Bankers' Rule for
daily compounding.
Frequency
Future Value
Interest Earned
Annually:
Semiannually:
Quarterly:
Monthly:
Daily:

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