26. $300 is deposited into an account paying 4% interest per year, compounded annually. What will be the balance of the account after 6 years, rounded to the nearest penny?

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
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Compound Interest
26. $300 is deposited into an account paying 4% interest per year, compounded annually. What
will be the balance of the account after 6 years, rounded to the nearest penny?
27. To save up for a $5000 bike, Lance will deposit a certain amount of money into an account
paying 8% interest per year, compounded monthly. How much must he deposit to be able to buy
the bike in 3 years, to the nearest penny?
28. How many years will it take a $750 loan to double if it earns 18% interest per year,
compounded monthly? Round to two decimal places.
29. Which it the better investment for a principal of $800: 8% APR compounded quarterly or 7%
APR compounded monthly?
Transcribed Image Text:Compound Interest 26. $300 is deposited into an account paying 4% interest per year, compounded annually. What will be the balance of the account after 6 years, rounded to the nearest penny? 27. To save up for a $5000 bike, Lance will deposit a certain amount of money into an account paying 8% interest per year, compounded monthly. How much must he deposit to be able to buy the bike in 3 years, to the nearest penny? 28. How many years will it take a $750 loan to double if it earns 18% interest per year, compounded monthly? Round to two decimal places. 29. Which it the better investment for a principal of $800: 8% APR compounded quarterly or 7% APR compounded monthly?
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