Help? You are shopping around to determine which bank account yields the highest return.You have three choices:1st-Wesbanco offers an account compounded daily at 4.89%2nd - PNC offers an account compounded semi-annually at 4.4%3rd - United offers an account compounded annually at 5.12%You have $2,100 to invest for 2 years. Which account should you choose to have the largest account balance in 2 years?UnitedWesbancoPNC.in 2 years.Wesbanco will produce $ NumberPNC will produce $ Numberin 2 years.United will produce $ Number(round dollar values to the nearest cent (two decimal places))in 2 years.

Future Value: It is the future worth of the current amount and is computed by compounding the…

You have $2,100 to invest for 2 years. Which account should you choose to have the largest account balance in 2 years? United Wesbanco PNC Wesbanco will produce $ Number in 2 years. PNC will produce $ Number United will produce $ Number in 2 years. (round dollar values to the nearest cent (two decimal places)) in 2 years.

You have $2,100 to invest for 2 years. Which account should you choose to have the largest account balance in 2 years? United Wesbanco PNC Wesbanco will produce $ Number in 2 years. PNC will produce $ Number United will produce $ Number in 2 years. (round dollar values to the nearest cent (two decimal places)) in 2 years.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Marcus is trying to decide which checking account to open. Bank A's account pays 1.6%, compounded annually. Bank Q's account pays 0.4% compounded quarterly. Which account will produce the highest return? Question 14 options: Bank A Bank Q They are the Same
Do the relevant calculations so you can indicate which you prefer: a bank account that pays 5.7% per year (EAR) for 3 years or a. an account that pays 2.3% every 6 months for 3 years? b. an account that pays 7.1% every 18 months for 3 years? c. an account that pays 0.29% per month for 3 years? (Note: Compare your current bank EAR with each of the three alternative accounts. Be careful not to round any intermediate steps less than six decimal places.) ..... If you deposit $1 into a bank account that pays 5.7% per year for three years, the amount you will receive after three years is $ (Round to five decimal places.)
You are shopping around to determine which bank account yields the highest return. You have three choices: 1st - Wesbanco offers an account compounded annually at 7.2% 2nd - PNC offers an account compounded semi-annually at 6.29% 3rd - United offers an account compounded daily at 6.5% You have $2,000 to invest for 1 years. Which account should you choose to have the largest account balance in 1 years? O Wesbanco United PNC Wesbanco will produce $ Number in 1 years. PNC will produce $ Number in 1 years. United will produce $ Number in 1 years. (round dollar values to the nearest cent (two decimal places))
You are shopping around to determine which bank account yields the highest return. You have three choices: 1st - Wesbanco offers an account compounded semi-annually at 3.99% 2nd - PNC offers an account compounded annually at 3.89% 3rd - United offers an account compounded daily at 3.82% You have $2,200 to invest for 2 years. Which account should you choose to have the best return on your investment?
You are comparing two banks. One bank is online and offers a savings account interest rate of 1.75% compounded quarterly. One bank is in your hometown and offers a savings account interest rate of 1.72% compounded daily. You have $4500 to keep in a savings account for 2 years, so you need to decide which bank would pay more interest. The online bank has an APY of what percentage? Round your percentage to three decimal places) 1.762 The hometown bank has an APY of what percentage? Round your percentage to three decimal places) 1.735 %. ✔ %. Therefore if you invest the same amount of money for the same amount of time, the bank that pays more interest is O Online bank O Hometown bank Enter a number. How much more interest would you earn at the bank you just selected compared to the other bank? State your result rounded to two decimal places. Hint: You will need to use the original investment information to calculate the interest earned on each account.
Which do you prefer: a bank account that pays 5% per year (EAR) for three years or a. An account that pays 2.5% every six months for three years? b. An account that pays 7.5% every 18 months for three years? c. An account that pays 0.5% per month for three years? a. An account that pays 2.5% every six months for three years? If you deposit $1 into a bank account that pays 5% per year for three years, you will have $nothing. (Round to five decimal places.) If you deposit $1 into a bank account that pays 2.5% every six months for three years, the amount you will receive after three years is $nothing. (Round to five decimal places.) Therefore, you will prefer: ▼ 2.5% every six months for three years 5% per year for three years . (Select from the drop-down menu.) b. An account that pays 7.5% every 18 months for three years? If the account pays 7.5% every 18 months for three years,…
You have $480 to put into a savings account, and a bank offers you two options: Account A pays 3.1% simple interest Account B pays 2.9% interest compounded monthly How long will it take each account to grow to $960? Enter the amount of time for whichever account takes longer to grow to $960 below. Round your answers to two decimal places if necessary.
Which do you prefer: a bank account that pays 10% per year (EAR) for 3 years or a. An account that pays 5.0% every 6 months for 3 years? b. An account that pays 15.0% every 18 months for 3 years? c. An account that pays 1.0% per month for 3 years? a. An account that pays 5.0% every 6 months for 3 years? If you deposit $1 into a bank account that pays 10% per year for 3 years, the amount you will receive after 3 years is $ If you deposit $1 into a bank account that pays 5.0% every 6 months for 3 years, the amount you will receive after 3 years is $ (Select from the drop-down menu.) (Round to five decimal places.) Therefore, you will prefer b. An account that pays 15.0% every 18 months for 3 years? If you deposit $1 into a bank account that pays 15.0% every 18 months for 3 years, the amount you will receive after 3 years is $ Therefore, you will prefer (Select from the drop-down menu.) c. An account that pays 1.0% per month for 3 years? If you deposit $1 into a bank account that pays…
Comparing 2 banks. One bank is online and offers a savings account interest rate of 1.75% compounded quarterly. The other bank is in your hometown and offers a savings account interest rate of 1.72% compounded daily. You have 4500 to keep in a savings account for 2 years. 1.The online bank has an APY of what percentage? Round your percentage to 3 decimal places. 2. The hometown bank has an APY of what percentage? Round to 3 decimal places. 3.which bank pays more interest? 4. How much more interest would you earn at the bank you selected compared to the other bank? Round to two decimal places.
You open an account where you deposit $500 today. Further, you deposit $800 at the beginning of next year, withdraw $250 at the beginning of year two and deposit $450 at the beginning of year 3. The return for year 1 is 6%, for year 2 it is -8%, for year 3 it is 4.5% and for year 4 it is -2%. What is your dollar-weighted or money-weighted return (in percent) for the four-year period? Answer to two decimals. O -1.45 -6.95 -11.92
You were considering depositing your savings in one of three banks, all of which pay 7% interest; bank Capital compounds annually, bank Daisani compounds semiannually, and bank CUM compounds daily. Explain which bank you would choose to deposit.
An investor has accumulated $4,450 and is looking for the best rate of return that can be earned over the next year. A bank savings account will pay 9%. A one-year bank certificate of deposit will pay 11%, but the minimum investment is $7,450. Required: a. Calculate the amount of return the investor would earn if the $4,450 were invested for one year at 9%. b. Calculate the net amount of return the investor would earn if $3,000 were borrowed at a cost of 19%, and then $7,450 were invested for one year at 11%. c. Calculate the net rate of return on the investment of $4,450 if the investor accepts the strategy of part b. Note: Round your answer to 2 decimal places. a. Amount of return b. Net amount of return c. Net rate of return %

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