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- Best Bank pays 6% interest rate compounded monthly. However, your deposit will be annually. Your first deposit of $8000 will be made immediately (Year 0). Additionally you will make the following deposit end of each years for 5 years Years 1 & 2: $7000 each year Years 3 & 4: $6000 each year Years 5: $5000 How much will be in the account at the end of five years? $46.095.54 $46,194.01 $39,538.74 $46.154.20 $52.190.80 $45.981.86One bank offers to loan you money at an interest rate of 12% compounded quarterly, and another bank offers to loan you money at 11.8% compounded continuously. Which loan would you prefer, and why?A bank offers 5%compound interest calculated on half - yearly basis. A customer deposit 1600.00 each on 1st January and 1st July of a year. At the end of the year, the amount he would have gained by way of interest is:
- If a Commercial Bank A offers its savers a 10.3% annual interest rate and pays interest annually, while another Commercial Bank B offers its savers 10% annual interest rate but pays monthly. Which Commercial Bank you would deposit your money, if you intended to keep in the savings account for 5 years. Show all numerical calculations.It is the first day of the year and you plan to make a total of 5 deposits of $ 4, 000 each, one every 6 months with the first payment being made today. The bank pays a nominal interest rate of 15% but uses semiannual compounding. How much your account with the bank be if you leave the money in the bank to be withdrawn all in 12 years from today? Round to the nearest $0.01 but do not use the $ sign. DO NOT USE commas to separate thousands. For example if you obtain $1, 432.728 then enter 1433.73; if you obtain $432 then enter 432.00You deposit $1,500 at the end of the year (k = 0) into an account that pays interest at a rate of 7% compounded annually. A year after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Six years after your deposit, the savings account again changes its interest rate; this time the interest rate becomes 8% nominal interest compounded quarterly. Eight years after your deposit, the saving account changes its rate once more to 6% compounded annually. a. How much money should be in the savings account 18 years after the initial deposit, assuming no further changes in the account's interest rate? b. What interest rate, compounded annually, is equivalent to the interest pattern of the saving account in Part (a) over the entire 18 year period? a. $ should be in the savings account 18years after the initial deposit. (Round to the nearest dollar.) b. The interest rate equivalent to the interest pattern of the saving account in Part (a) over the…
- ou deposited some amount of money to the bank at the annual interest rate of 0,1% being compounded quarterly. How many years (approximately) it will take for the deposit to double?A bank customer saved 5000 PLN on the savings account. The deposit lasted for 2 years. For the first 6 months continuous interest rate method was used with the 4,5% nominal interest rate, for the next 9 months compound interest rate method was used, and during the last months simple interest rate method was used also with 4,5% nominal interest rate (after each change in the interest method, interest was added to the account balance). Please calculate what was the nominal interest rate in the second period if the profit from the deposit was 414,70 PLN after the whole 2 years period?A bank offers 5% compound interest calculated on half-yearly basis. A customer deposits 1600.00 each on 1st January and 1st July of a year. At the end of the, the amount he would have gained by way of interest is:
- A banks lends a customer OMR 6,000. At the end of 9 years he repays this amount plus interest. The amount he repays is OMR 10,000. What is the interest rate charged by the bank? What sum must be invested now to provide an amount of OMR 18,000 at the end of 15 years if interest is to accumulate at 8% for the first 10 years and 12% thereafter?If you withdraw part of your money from a certificate of deposit before the date of maturity, you must pay an interest penalty. Suppose you invested $7000 in a one-year certificate of deposit paying 8.1% interest. After 6 months, you decide to withdraw $7000. Your interest penalty is 3 months simple interest on the $7000. What interest penalty do you pay? (Round your answer to two decimal places)You deposit $2,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6% compounded annually. A year after your deposit, the savings account interest rate changes to 12% nominal interest compounded monthly. Five years after your deposit, the savings account again changes its interest rate; this time the interest rate becomes 8% nominal interest compounded quarterly. Nine years after your deposit, the saving account changes its rate once more to 5% compounded annually. a. How much money should be in the savings account 17 years after the initial deposit, assuming no further changes in the account's interest rate? b. What interest rate, compounded annually, is equivalent to the interest pattern of the saving account in Part (a) over the entire 17 year period?