Question

suppose you have to invest $15,000 which of the two rates would yield the larger amount...

suppose you have to invest $15,000 which of the two rates would yield the larger amount in one year. 8% compounded daily or 7.90% compounded continuously? which of these two rates would yield the larger amount in one year
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
You have $1,000 to invest for 8 years.  Banks offer you the following rates: 6% annual compounded...
You have $1,000 to invest for 8 years.  Banks offer you the following rates: 6% annual compounded APR, 5.8% semi-annual compounded APR, 5.5% continuously compounded APR.  Where do you want to invest and how much will you have?
Periodic interest rates. You have a savings account in which you leave the funds for one...
Periodic interest rates. You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of 0.055%, a weekly compounded rate of 0.305%, a monthly compounded rate of 1.55%, a quarterly compounded rate of 4.50%, a semiannually compounded rate of 7%, or an annually compounded rate of 17%? Calculate the EAR for each of the possible rates.
5A-1 FV CONTINUOUS COMPOUNDING If you receive $15,000 today and can invest it at a 6%...
5A-1 FV CONTINUOUS COMPOUNDING If you receive $15,000 today and can invest it at a 6% annual rate compounded continuously, what will be your ending value after 15 years? 5A-2 PV CONTINUOUS COMPOUNDING In 7 years, you are scheduled to receive money from a trust established for you by your grandparents. When the trust matures there will be $200,000 in the account. If the account earns 9% compounded continuously, how much is in the account today? 5A-3 FV CONTINUOUS COMPOUNDING...
You want to invest $15,000 in government securities for the next two years. You can either...
You want to invest $15,000 in government securities for the next two years. You can either invest in a security that pays an interest rate of 7.5% per year for the next two years, or invest in a security that matures in one year but pays 5.5%. If you decide to invest in the security that matures in one year, you would then reinvest your savings for another one year. What should be the one year interest rate next year...
Periodic interest rates.   You have a savings account in which you leave the funds for one...
Periodic interest rates.   You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather​ have: a daily compounded rate of 0.040​%, a weekly compounded rate of 0.305​%, a monthly compounded rate of 1.45​%, a quarterly compounded rater of 4.00​%,a semiannually compounded rate of 7​%, or an annually compounded rate of 14​%? How does this get entered in a financial calculator? I have 10bii app
You have $500 that you would like to invest for one year. You have 2 choices:...
You have $500 that you would like to invest for one year. You have 2 choices: savings account A which earns 8.3% compound annually or savings account B which earns 8% compounded semi-annually. Which would you choose? A. Savings Account A B. Savings Account B C. You are indifferent between Savings Account A and Savings Account B.
Suppose you have a credit card balance of $15,000 which you want to repay in equal...
Suppose you have a credit card balance of $15,000 which you want to repay in equal end-of-month payments for 5 years with a nominal annual interest rate of 18%, compounded monthly. What is the amount of the payments?
You have $5,000 to invest. You have two choices of how to invest. Choice “A” would...
You have $5,000 to invest. You have two choices of how to invest. Choice “A” would have you invest at 5% per year for two years. Choice “B” would have you invest at 4.75% for the first year and then re-invest the proceeds for another year. What rate of return would you need to earn on the second year of Choice “B” to make you expect to earn the same return as for Choice “A”?
Which of the following interest rates would you prefer for investing your money? a)       one that pays...
Which of the following interest rates would you prefer for investing your money? a)       one that pays 4.5%, compounded annually b)      one that pays 4%, compounded daily c)       one that pays 4.75%, compounded quarterly d)      one that pays 4.25%, compounded monthly
"You have three choices in placing your $15,000 in a bank account today for 9 years....
"You have three choices in placing your $15,000 in a bank account today for 9 years. Bank A pays 5.85% compounded annually. Bank B pays 5.2% compounded quatarly. Bank C pays 5.56% compounded continuously. Enter the amount of money that the best option would return after 9 years. There is no inflation."
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT