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- Q3. Miss Aisha deposited RO 5000 in a fixed deposit at 5 % interest compounded semi-annually for 5 years. At the beginning of year 3, he deposited an additional RO 2000 at 7 % rate of interest compounded quarterly. a) What will be the total balance in his account after 5 years? b) Simple interest and compound interest method generate different amount of interest. Discuss and give reason to your answer c) If Miss Aisha would have deposited the same amount for the same period and at the same rate of simple interest, how much amount he would have got at the end of 5 years?a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal comes from deposits and how much comes from interest? Periodic Deposit Rate Time Financial Goal $? at the end of each year 3% compounded annually 18 years $140,000 a.The periodic deposit is $_______. (Do not round until the final answer. Then round up to the nearest dollar asneeded.)1. Determine the interest rate earned on a $4,444 deposit when $4789 is paid back in one year. (Round your answer to 2 decimal places.) 2. You decide to make a deposit of $500 today and earns the following interest rates:7 percent in the first year.6 percent in the second year.5 percent in the third year. What would be the third year future value? (Round your answer to 2 decimal places.) 3. How many years will it take $1.5 million to grow to $3.50 million with an annual interest rate of 6.25 percent? (Do not round intermediate calculations.) 4. Jeff realizes that he has charged too much on his credit card and has racked up $8,200 in debt. If he can pay $325 each month and the card charges 19 percent APR (compounded monthly), how long (in months) will it take him to pay off the debt? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
- Find the compound amount and the amount of interest earned by the deposit below. $9,000 at 7.79% compounded continuously for 3 years. What is the compound amount? (Do not round until the final answer. Then round to the nearest cent.) What is the interest earned? (Do not round until the final answer. Then round to the nearest cent.)5. Assume you deposit RM1,000 into a savings account every three months that compounds interest semiannually. a. Determine the payment period (PP) and compounding periods (CP) b. State the payment period greater than or less than the compounding period.Every year you deposit $3,500 into an account that earns 19% interest per year, What will be the balance of your account immediately after the 40th deposit? Click the icon to view the interest and annuity table for discrete compounding when / 1% per year. Choose the correct answer below. O A. $165,837 O B. $123,795 OC. $171,102 OD. $172,813 OE. $140,000
- If James deposits $2,000.00 in a fixed deposit for 1 year, what will be the difference in the accumulated amounts at 12% p.a. compound interest versus 12% p.a. simple interest? Hence, based on your response what may have contributed to this difference. Lastly, if the deposit period changed from 1 year to 2 years, would your response remain the same?1. You invest $1,000 in a certificate of deposit that matures after ten years and pays 5 percent interest, which is compounded annually until the certificate matures. a. How much interest will you earn if the interest is left to accumulate?You invested $5,000 into a certificate of deposit (CD) today and agreed to leave it in the CD for the next 5 years. The CD pays a 6% annual interest rate, compounded semi-annually. What is the value of the CD at the end of 5 years? $8,954.24 $6,391.13 $28,185.46 $6,719.58
- A saver places GHc1,000 in a certificate of deposit that matures after 20 years and that each year pays 4 percent interest, which is compounded annually until the certificate matures. How much interest will the saver earn if the interest is left to accumulate? How much interest will the saver earn if the interest is withdrawn each year?Vincent Madrigal secured a certificate of deposit for 7 years amounting to USD100,000 at 4% interest rate compounded monthly. How much will she receive(principal plus compound interest) after the date of maturity? Topic: Principle of FinancePlease do not answer this question in excel thank you in advance. A deposit of $2,500 is made into an account drawing 3.6% interest compounded monthly. Find the future value 15 years after the initial deposit.