Question

c) Identify the investment that accumulates the most money. -$ 100 in the piggy bank each...

c) Identify the investment that accumulates the most money. 
-$ 100 in the piggy bank each month for 10 years 
-$ 100 per month, for 10 years, at a rate of 7% per year, compounded annually. 
-$ 100 per month , for 10 years, at a rate of 7% per year, compounded monthly. 
-$ 1,000 per year, for 10 years, at a rate of 7% per year, compounded annually.
Math   Algebra   
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
Mr. Jones deposited $800 at the end of each year into a RRSP investment fund for...
Mr. Jones deposited $800 at the end of each year into a RRSP investment fund for the last 10 years. His investment earned 10% compounded annually for the first 7 years and 9% compounded annually for the last 3 years. How much money will he have in his account 10 years after his last deposit if the interest rate remains at 9% compounded annually?
How much money must be deposited in saving account each month to accumulate $25,000 at the...
How much money must be deposited in saving account each month to accumulate $25,000 at the end of 6 years , if the bank pays interest at the rate of 8% per year compounded Monthly? Quarterly ?
How much money must be deposited in saving account each month to accumulate $25,000 at the...
How much money must be deposited in saving account each month to accumulate $25,000 at the end of 6 years , if the bank pays interest at the rate of 8% per year compounded a. monthly ? b. quarterly ?
An investment will return $125 at the end of each month for 5 years and then...
An investment will return $125 at the end of each month for 5 years and then $250 at the end of each month for the next 3 years. What is the present value of the earnings on this investment calculated at the annual rate of 7.50% per year compounded monthly (0.625% per month)?
You have your choice of two investment accounts. Investment A is a 7-year annuity that features...
You have your choice of two investment accounts. Investment A is a 7-year annuity that features end-of-month $2,500 payments and has an interest rate of 8 percent compounded monthly. Investment B is an annually compounded lump-sum investment with an interest rate of 10 percent, also good for 7 years. How much money would you need to invest in B today for it to be worth as much as Investment A 7 years from now? (Do not round intermediate calculations and...
An investment will provide you with $100 at the end of each year for the next...
An investment will provide you with $100 at the end of each year for the next 10 years. What is the present value of that annuity if the discount rate is 8% annually? What is the present value of the above if the payments are received at the beginning of each year? If you deposit those payments into an account earning 8%, what will the future value be in 10 years? What will the future value be if you open...
Two local banking institutions offer the following interest on deposits: Blue Bank: 3% annual compounded semi-annually...
Two local banking institutions offer the following interest on deposits: Blue Bank: 3% annual compounded semi-annually Red Bank: 2.95% per year compounded monthly Determine which of the following items is not true: Select one: a. The Red Bank offers better interest because it calculates the interest monthly so it accumulates more frequently and is therefore more attractive. b. The APY (Annual Percentage Yield) of the Blue Bank is 3,022% per year. c. The effective interest rate of the Red Bank...
QUESTION 5: Time value of money 5.1 You decided to invest R20 000 in a bank...
QUESTION 5: Time value of money 5.1 You decided to invest R20 000 in a bank account over five years that is paying 5% interest per year. Calculate your interest if interest is compounded annually. Also, how much will you have accumulated if the interest was compounded monthly instead of annually? 5.2 Explain what a zero-coupon bond is and calculate the present value of the following zero-coupon bond with a par value of R100: The bond is to be redeemed...
7. If Paul invested $10,000 today and also added $100 every month, how much money would...
7. If Paul invested $10,000 today and also added $100 every month, how much money would he have in his account at the end if the interest rate on his investment is 8% compounded monthly? A. $23,037 B. $115,345 C. $11,717 D. $40,491
HI5002 Pre-recorded Tutorial Questions for Topic 3A Question 1: You wish to have an investment that...
HI5002 Pre-recorded Tutorial Questions for Topic 3A Question 1: You wish to have an investment that will bring about $20 000 in five years, and the rate of return is 8% per annum. Required: a. In term of time value of money, what does the amount of $20,000 represent? b. How much do you need to invest now if the rate is compounded annually (to the nearest dollar)? c. If you have $20,000 now and put the sum into a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT