A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly. Round to the nearest cents. a) How much money will the student have at the end of 5 years? Ending Value: $ b) How much interest will the student have earned in 5 years? Interest Earned:$ C)What is the effective yield (APY)? APY: %, (written as percent, round to the two decimal place as needed)
A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly. Round to the nearest cents. a) How much money will the student have at the end of 5 years? Ending Value: $ b) How much interest will the student have earned in 5 years? Interest Earned:$ C)What is the effective yield (APY)? APY: %, (written as percent, round to the two decimal place as needed)
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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Transcribed Image Text:A student puts $10,000 in a savings account that pays 16% annual interest, compounded quarterly. Round to the nearest cents.
a) How much money will the student have at the end of 5 years? Ending Value: $
b) How much interest will the student have earned in 5 years? Interest Earned:$
C)What is the effective yield (APY)? APY:
%, (written as percent, round to the two decimal place as needed)
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